2503(C) Trust is trust with only one beneficiary, who must be a minor. Upon reaching majority, the minor has full use and control over the assets. The trust derives its name from Section 2503 (C) of the Internal Revenue Code (26 U.S.C) which sets down the requirements for the trust. The grantor of the trust cannot receive any income from the assets held in the trust. Although the trust may continue after the beneficiary turns 21, gifts to the trust will no longer qualify for the annual exclusion if the beneficiary has no immediate right to withdraw the gift.
2503(C) Trust is also known as minor’s trust.