CFP applicants are often intimidated by questions regarding the GST taxation. However, they are actually quite simple if you know when to look at ages and when not to look at ages. Memorizing one simple rule will always lead you to the right answer. Here is the rule:

**Age applies ONLY to non-related persons, and they are skip persons only if they are more than 37.5 years younger than the transferor.**

** **In this example, we have two non-related persons (choices A and C). Are any of them more than 37.5 years younger than Bill? Yes, choice A is more than 37.5 years younger and is, therefore, a skip person.

Now let’s look at related persons. Ignoring their ages, we see that choice B is a nephew only one generation below Bill. Choice D is a granddaughter two generations below Bill and is, therefore, a skip person despite the fact that she is only 36 years younger than Bill.

Therefore, the correct choice is #4.

Of course, the questions can get a bit more complicated, especially when the deceased parent rule comes into play or when dealing with a spouse’s relatives, so be sure to learn the following rules as well:

**When there are lineal descendants, children step up to a deceased parent’s position on the family tree. Only when there are NO LINEAL DESCENDANTS can other relatives step up to a deceased parent’s position. Your spouse’s relatives are your relatives, too, and you stand in the exact same generation relative to them as does your spouse. [Note, this is one where the Board Exam can easily get tricky if you forget the first rule: age applies ONLY to non-related persons.]**

If CFP candidates will remember these four simple rules, they will be prepared for any GST question the CFP Board exam throws at them.