A is the answer. The 2503(b) trust would distribute the income annually to Gaven. However, the principal can remain inside the trust until Gaven reaches age 65. The 2503(c) trust is not appropriate as it only allows income to be accumulated until the beneficiary reaches age 21. Gaven is already age 30. The Crummey trust is not appropriate as the Crummey trust would allow annual gifts to qualify for the annual gift tax exclusion. Jason will not be making gifts to this trust as it will be established at his death. The Totten trust is not appropriate as it is essentially a revocable trust at a bank that would allow Gaven the ability to withdraw the funds at any time after Jason’s death.
