Andrew and Gina, both aged 56, are well off financially and are in the highest marginal tax bracket. They want to gift money to their two teenage grandchildren to pay for their college education. Andrew and Gina are confused about the different savings options that are available to them and have asked you, their financial planner, for advice in sorting this out. Which statement is not correct?

Group of answer choices

a.A Section 2503(b) trust is not the best savings option because the trust must distribute all income each year to the trust's income beneficiaries.

b.A custodial account can accumulate income that can be used to pay for any educational expenses, but the earnings are not taxdeferred.

c. Distributions taken from Andrew's traditional IRA to pay for qualified education expenses after age 59 are not taxable to Andrew.

d. Appreciating stock gifted to the grandchildren would reduce the value of the couple's gross estate and would be taxed in a lower income tax bracket when the stocks are sold.