deemed transferor
deemed transferor. Tax. A person who holds an interest in a generation-skipping trust on behalf of a beneficiary, and whose death will trigger the imposition of a generation-skipping transfer tax. • A deemed transferor is often a child of the settlor. For example, a grandfather could establish a trust with income payable for life to his son (who, because he is only one generation away from his father, is also known as a nonskip person) with the remainder to his grandson, a beneficiary also known as the skip person. When the son dies, the trust will be included in his gross estate for determining the generation-skipping transfer tax. IRC (26 USCA) §§ 2601–2663. See GENERATION-SKIPPING TRANSFER; generation-skipping transfer tax under TAX; generation-skipping trust under TRUST; SKIP PERSON; NONSKIP PERSON.
