Skip person

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A skip person refers to a family member that someone gifts or bequests assets to, that is two or more generations younger than them. This term arose when, prior to the generation-skipping transfer tax, wealthy individuals passed their wealth to grandchildren and other family members who were not exposed to the estate tax. The generation-skipping transfer tax destroyed this loophole in 1976. 

[Last updated in July of 2021 by the Wex Definitions Team]