Sully has already used up all of his gift, estate tax and GST exemptions in funding prior gifts. To celebrate his granddaughters college graduation, he sends her a check for $100,000.

Check all of the following that are true:

___ The gift will trigger a 40% gift tax.

___ The gift will trigger a 40% GST tax.

___ Because the transfer will trigger gift tax, Sully will not be required to pay GST as well.

___ This is a direct skip for GST purposes.

___ The granddaughter will have to pay income tax as the $100,000 will be considered taxable income.

___ The value of the gift will include both the $100,000 plus whatever GST tax Sully is obligated to pay.