A more thorough explanation:

Definition: A nonskip person is someone who is not subject to the generation-skipping transfer tax. This tax is imposed on certain transfers of property made to skip persons, who are typically grandchildren or other individuals who are at least two generations younger than the transferor.

Example: If a grandparent leaves money to their child, who then leaves it to their own child (the grandparent's grandchild), the grandchild would be considered a skip person for purposes of the generation-skipping transfer tax. However, if the grandparent leaves money to their child, who then leaves it to a friend or charity, that friend or charity would be considered a nonskip person.

This definition is important for tax planning purposes, as it helps individuals and their advisors determine whether certain transfers of property will be subject to the generation-skipping transfer tax.