Skip Person

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Skip Person

The transfer of a property to a person two or more generations younger than the person making the transfer. This may trigger a taxable event.
References in periodicals archive ?
Trusts for the benefit of skip persons are treated as skip persons when all beneficiaries eligible or entitled to receive trust income or principal are skip persons, or no person is currently eligible or entitled to receive trust income or principal, and at no time may distributions be made to beneficiaries who are not skip persons.
These trusts are considered skip persons because the beneficiaries are in a generation two or more below the generation of the donor.
The attorney must consider not only biological grandchildren, or individuals inherently skip persons, but also beneficiaries who are otherwise skip persons because of ages.
24) Part 1 is for gifts to donees who are not "skip persons" with respect to the donor, while Part 2 is for gifts to donees who are skip persons with respect to the donor.
the grandchild's parent and her siblings) are not skip persons in relation to the grandchild.
A transfer in trust where all beneficiaries of the trust are skip persons is also considered a direct skip.
The same is true when a transfer is made to a trust that has only skip persons as beneficiaries.
In Simpson, the decedent exercised a testamentary GPA granted under a marital trust created in 1966; thus, the property passed to her grandchildren (who were skip persons as defined in Sec.
If taxpayer allocates $500,000 of his GST tax exemption on a timely filed federal gift tax return, all distributions from the trust to skip persons, at any generation, will be exempt from GST tax.
Gifts to skip persons are referred to as "direct skips" under the Code, as defined in Sec.
Code Chapter 13 imposes a tax on all transfers, whether made directly or indirectly, to skip persons (generally, a person two or more generations below the generation of the transferor or a trust, if all of the interests in the trust are held by skip persons).