- A transfer of property that involves skipping one or more generations. This occurs when an individual, typically a grandparent, directs property or assets to a person who is two or more generations below them, usually a grandchild, or to a trust consisting of such individuals. This kind of transfer is susceptible to a specific tax — the generation-skipping transfer tax
- After the grandfather's death, there was a direct skip, as the estate got transferred directly to the grandchild, bypassing the parent.
- The generation-skipping transfer tax was incurred because of the direct skip from the woman to her grandchild.
- To avoid burdening their children with estate taxes, they established a trust for direct skip to move the assets to their grandchildren instead.