A generation-skipping trust is designed so assets benefit multiple generations while minimizing transfer taxes by allocating GST exemption at funding. Income and principal can be distributed under trustee discretion while the trust remains outside beneficiaries' estates. Provisions address powers of appointment, spendthrift protections, and trustee succession. Life insurance may be owned inside or alongside the trust for liquidity of equalization. Proper administration and recordkeeping maintain GST protection and support long-term family governance across changing tax regimes and beneficiary needs.

Families fund GST-exempt trusts to benefit children and grandchildren outside their taxable estates. Trustees follow distribution standards and investment policies; advisors coordinate insurance for liquidity and equalization.