Estate planning is key to transferring your generational wealth down to loved ones, as is understanding how to pass it down in a tax-free way — or at least in a manner that reduces the tax onus. Generation-skipping trusts enable you to transfer assets directly to grandchildren or future generations — bypassing estate taxes that would typically apply to the intervening generation. While these are all great ways to pass down generational wealth with a lower tax burden — or tax-free — tax laws may vary depending on where you live.