A bigger issue as 2010 winds down, however, has become the gift tax, which is linked to the estate tax to prevent people from giving away their fortune in life to avoid taxes at death. It now stands at 35 percent, the lowest rate since the 1930s. And since a retroactive reinstatement of the estate and gift taxes appears unlikely — or will be contested in the courts for years — the wealthy are starting to look at making large gifts this year to reduce their estates later.
Wealth Matters – A Year to Give Gifts to Your Heirs, and Save on Taxes – NYTimes.com