Skip persons for generation skipping transfer tax

The Internal Revenue Code defines a skip person for generation skipping transfer tax (GSTT) purposes as: any lineal descendent of the transferor’s grandparent or transferor’s spouse’s grandparent who is 2 or more generations below the generation of the transferor; or any transferee not included within the preceding definition of a lineal descendent who is more than 37.5 years younger than the transferor. GSTT does not apply to transfers made to spouses, former spouses, or charitable organizations. Additionally, adopted relatives receive the same treatment as blood relatives in the application of GSTT rules.