This is a good article about end of year gifting.
The federal gift tax rate for gifts in 2010 is (just) 35%, which is really low compared to historical rates. Under current law, the rate increases to 55% on January 1, 2011. Accordingly, for taxpayers whose net worth is sufficiently high that they will likely be subject to estate tax regardless of any law changes, taxable gifts this year could be a really good planning tool. This is especially true for older clients or clients in poor health.
Of course, you should wait until the end of the year (read December 31) to make these gifts, because if you die before the end of year, then the gift tax paid will have been wasted.
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