C. B. Snow, deceased president of Highway Cartage Company, left a net estate of $300,000 in the…

C. B. Snow, deceased president of Highway Cartage Company, left a net estate of $300,000 in the late 1970s. Under his will, a trust of $300,000 was created for his surviving spouse, with Peninsular Trust Company named trustee. A daughter is the remainderman of her mother’s trust. The widow’s trust is composed of the following assets

As a portfolio manager with Peninsular, you have just attended a meeting with the widow and learned the following: She is 65 and in good health (mortality tables indicate an expected life span of 18 years). As a retirement benefit, she is eligible for Highway’s generous group medicalinsurance plan for the remainder of her life.