(b) That's right. The law does not require that the income from a trust be distributed equally to all the beneficiaries.

The terms of the trust can include detailed instructions as to how the income is to be distributed among the beneficiaries, or the trustee can be given discretion in this matter. If the trustee is given discretion, they can decide on the extent to which income should be distributed, and the proportions in which it should be shared.

In the circumstances of the case study, if Edward is given the necessary discretion, he can decide when and how to distribute the income from the business, so as to retain sufficient working capital.