A father wants to accumulate funds for his 12-year-old son’s college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:

A father wants to accumulate funds for his 12-year-old son’s college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:
A . The trust must be irrevocable.
B . The father’s annual gift tax exclusion must be reduced by any amount used to pay college tuition costs.
C . Any accumulated income and all trust principal must be available for distribution to the son when he attains age 21.
D . In the event of the son’s death prior to age 21, trust assets must either be payable to the son’s estate or be subject to a general power of appointment held by the son.

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Answer: B