Peggy gives $200,000 to her grandson. This is an example of a direct skip for purposes of the generation-skipping transfer tax (GSTT).

Question

Quizplus · Accepted Answer

A direct skip occurs when a gift or bequest is made directly to a grandchild or more remote descendant, bypassing the child's generation, which is the case with Peggy giving $200,000 to her grandson, thus subjecting the transfer to the generation-skipping transfer tax (GSTT).

Peggy Gives $200,000 to Her Grandson