What type of trust can allow the grantor to dictate how the income can be distributed to beneficiaries?

The correct answer is a revocable living trust because this type of trust grants the grantor significant control over the assets and their management, including the ability to specify how and when income is distributed to beneficiaries. The revocable living trust can be altered or revoked by the grantor at any time during their lifetime, allowing for flexibility in distribution decisions. This means that the grantor can set particular conditions or periods for income distribution that can align with their intentions for benefiting the heirs or managing the assets effectively.

In contrast, the other types of trusts have different characteristics and limitations. A charitable remainder trust is designed to provide charitable benefits and typically ensures that a portion of the assets goes to charity after the expiration of a certain term, which may limit the control the grantor has over individual distributions to other beneficiaries. An irrevocable trust, once established, cannot be modified or revoked by the grantor and thus restricts the grantor’s ability to change income distribution as circumstances evolve. A special needs trust is specifically structured to provide for the care of beneficiaries with disabilities without disqualifying them from government benefits, often with strict rules on how funds can be used, thus limiting the grantor's control over distributions related to personal preferences.

Overall, the revocable