- A method where grandparents allocate gifts or assets to their grandchildren directly, bypassing their own children. Although initially employed to sidestep taxes, it now incurs a special tax and is taxable like any large gift
- The wealthy businessman chose the method of generation skipping to pass on his inheritance directly to his grandson.
- Using a generation skipping trust, the grandmother left her entire estate to her granddaughter.
- Despite the generation skipping tax, the elderly man decided to bypass his children and gift his estate directly to his grandchild.