What term describes a transferee who is two or more generations below the decedent?

• A. Skip person
• B. Annuity
• C. Dower
• D. Gross value

Answer: (A)

The concept here is generation-skipping transfers. A transferee who is two or more generations below the decedent is called a skip person. This term is used in GST (generation-skipping transfer) tax planning to identify beneficiaries like grandchildren or great-grandchildren, who sit two or more generations away from the donor.

Two or more generations below includes grandchildren, great-grandchildren, and so on, which is why skip person is the precise label for these recipients. In contrast, an annuity is just a contract for periodic payments, dower refers to a surviving spouse’s rights in an estate, and gross value is the overall value of property before deductions—none of these describe the generation relationship to the decedent.