A trustee may have the authority to make decisions about managing the assets of an account if it has ____ powers?

The correct answer is based on the concept of discretionary powers within a trust. When a trustee has discretionary powers, it allows them to make decisions on how to manage and distribute the trust assets based on their judgment and what they believe to be in the best interest of the beneficiaries. This level of authority enables the trustee to respond to changing circumstances and to make investment choices or distributions that align with the overall goals of the trust.

Discretionary powers give the trustee flexibility and the ability to take into account the unique needs of the beneficiaries. For instance, a discretionary trustee can decide how much to distribute to beneficiaries and at what intervals, rather than being bound by specific guidelines. This contrasts with non-discretionary powers, where the trustee must adhere strictly to predetermined instructions without the ability to exercise judgment.

Additionally, "revocable" and "irrevocable" refer to the nature of the trust itself and whether it can be modified or terminated by the grantor, rather than the level of management authority granted to the trustee. Thus, the ability of a trustee to manage assets effectively and with flexibility comes from having discretionary powers.