Generation Skipping Legal Meaning and Definition

Here is a simplified definition of the legal term Generation Skipping.

Generation Skipping (adjective)

Definition: Generation Skipping refers to a legal strategy in estate planning where a person gives or leaves their assets to a generation that is two or more steps below their own, typically grandchildren or great-grandchildren, thereby 'skipping' the immediate next generation, such as their own children. This is often done through a will or trust. The aim is to reduce inheritance or estate taxes that would be incurred if the property were to pass through each generation.