Certified Trust and Fiduciary Advisor (CTFA) 2025 – 400 Free Practice Questions to Pass the Exam

For generation-skipping tax (GST) purposes, "skip persons" generally refer to individuals who are two or more generations younger than the donor. This typically includes grandchildren, as they are one generation removed from the parent's generation and two generations removed from the grandparent's generation.

In this context, when identifying Jake's grandchildren, GC1 and GC2—presumably his grandchildren—are considered skip persons. If anything indicates that one of Jake's grandchildren (GC1) is generationally positioned such that they are indeed classified as a skip person, then this further reinforces the understanding that both GC1 and another designated entity (like GN1, which could refer to another grandchild or descendant of Jake considered in the examination of the generational skips) qualify under this scenario.

Recognizing that GC1 and GN1 are both positioned generationally to be considered as skipping the generation of their parents aligns with the guidelines of the GST regulations, affirming their classification as skip persons. This is crucial for understanding the implications of transfers and potential GST liability associated with these individuals when estate planning or wealth transfer strategies are involved.