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Marshall places securities in trust for Chase, a minor. The trustee is given discretion concerning...

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Accounting

Marshall places securities in trust for Chase, a minor. The trustee is given discretion concerning the accumulation of income. The income and principal may be expended by or on behalf of Chase. Any principal not expended by age 21 is to pass to Chase. If Chase dies before age 21, the unexpended principal is to pass
to Chase's estate. Under these circumstances, which of the following statements concerning federal gift taxes is correct?
a) Chase has only a future interest.
b) If Marshall had specified age 22, rather than age 21, Marshall would have lost the benefit of the annual exclusion.
c) The gift tax annual exclusion is not available for the gift to the trust.
d) The gift in trust is a present-interest and not subject to federal gift taxes.

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