Q5. Under a trust created by the will of the late Reginal, the trust income is to be
distributed as follows:
\begin{itemize}
\item one-quarter to his widow;
\item to a son, aged 26, the amount the trustee considers necessary to meet his
educational needs; and
\item the remainder of the income to a son, aged 20, currently serving a three-
year sentence for culpable driving.
\end{itemize}
The net income of the trust estate for the current tax year amounts to $42,000,
of which $4,000 has been applied for the education of the son, aged 26.
Required:
Prepare a trust distribution statement showing how the income of the trust
estate for the current tax year would be assessed. Discuss your answer by
referring to relevant income tax legislation.