Jack Green established the Jackson Trust by a gift in 1999. The trust instrument requires that the trustee distribute all of the trust income at least annually to Ned Jackson for life. In fact, all the trust income was distributed to Ned Jackson during the year. Under the trust document capital gains are credited to principal. Trustee's fees and estimated tax payments come out of principal for purposes of calculating fiduciary income. The 2012 results of the trust are as follows:

Dividends                               $20,000

Corporate Bond Interest        $30,000

Capital Gains                         $10,000

Rental Income                       $30,000

Tax-Exempt Interest              $20,000

Trustee's Fee                         $10,000

Tax Return Preparation Fee     $ 1,000

Payment of Estimated Taxes   $ 1,500

Rental Expenses                     $ 5,000