A more thorough explanation:

Definition: A skip person is a family member who is two or more generations younger than the person gifting or bequeathing assets to them. This term originated when wealthy individuals passed their wealth to grandchildren and other family members who were not subject to estate tax. However, the generation-skipping transfer tax was introduced in 1976 to prevent this practice.

• John, who is a grandfather, decides to leave his estate to his granddaughter, Emily, instead of his daughter, Sarah. Emily is considered a skip person because she is two generations younger than John.
• When Mary passed away, she left her assets to her great-niece, Rachel. Rachel is a skip person because she is two generations younger than Mary.

These examples illustrate how a skip person is a family member who is at least two generations younger than the person gifting or bequeathing assets to them. In both cases, the skip person is a grandchild or great-niece who is not subject to estate tax because of their relationship to the person leaving the assets.