Michael created and funded an irrevocable trust for his daughter, Allie, with $1,000,000. Allie is the income beneficiary and her two children (Michaels lineal grandchildren) are the remainder beneficiaries. Which of the following statements is true?

If Michael predeceases Allie, this is a skip trust.

When Allie dies, there is a taxable termination of the trust for GST purposes.

Michael does not need to allocate part of his lifetime GST exemption to this transfer since no GST tax will be due on the transfer.

None of the above is true.