Which statement is CORRECT regarding a Section 2503(b) trust?

The statement that the beneficiary's right to trust income is a present interest is accurate for a Section 2503(b) trust. This type of trust is designed so that the beneficiary has the right to receive all income generated by the trust each year. Because the income is available to the beneficiary without any conditions, it is considered a present interest. This characteristic is critical in the context of gift tax exclusions, as present interests can qualify for the annual exclusion, allowing contributions to the trust to avoid triggering gift tax.

Understanding this classification is essential for effective estate planning and gift tax strategy, as it can facilitate tax-efficient transfers of wealth. In contrast, contingent interests or future interests do not qualify for the same exclusions and require different tax considerations. Thus, the ability for the beneficiary to access trust income immediately underlines why this option stands out as the correct assertion regarding the Section 2503(b) trust.