Question

which of the following gift is a gift to a skip person? a. Bob (age 50) makes a $50,000 gift to his godson David (age 11) b. Carol (age 50) gives $75,000 to her niece Sally (age 10) c. Jan (age 65) gives $25,000 to her friend Bill (age 45) d. John (75) gives $100,000 to his grandson Joseph (30). Joseph's mother (John's daughter) is not living at the time of the gift

Answer 1

There are two criteria for a skip person –

1. A skip person is a person who is two or more generations below the transferor/grantor of money or property.
2. The skip person should be least 37.5 years younger than the transferor

Option a. Bob (age 50) makes a $50,000 gift to his godson David (age 11) and option b. John (75) gives $100,000 to his grandson Joseph (30) both fulfill these criteria. Therefore both will be considered as a gift to a skip person although first one is direct skip gift and second one is indirect skip gift as Joseph's mother (John's daughter) is not living at the time of the gift.