Generation-Skipping Trust

A Generation-Skipping Trust has as its remainder beneficiaries persons who belong to a generation that is at least two generations after yours. For example, a trust that would benefit your child during the child's life and provide that, upon the child's death, the assets are to be distributed free of trust to your grandchild is a Generation-Skipping Trust. Because the child does not receive the trust assets free of the trust, the child's generation has been skipped.