When entering General Info: Beneficiary Information, what does the check for Generation-skipping mean, and when should it be used?
I have an irrevocable, non-grantor Health and Education Trust that calls out "Any distributions to trust beneficiaries who are skip persons be excepted from the generation skipping transfer tax under section 2611(b)(1) of the Internal Revenue Code."
The current beneficiaries are two generations from the originator of the trust. Because there is a non-skip person beneficiary (Charity), there is not a taxable termination to the trust for Generation-Skipping Tax purposes.
Should the Skip-Person check be put on these beneficiaries in this situation?
