What type of trust allows Martin to manage real estate investments while distributing proceeds to his son?

The correct answer is a living trust. A living trust, also known as an inter vivos trust, is established during an individual's lifetime and allows for the management of assets, including real estate investments, while the individual is still alive. One of the key advantages of a living trust is that it can provide for the distribution of assets to beneficiaries, such as Martin's son, while maintaining control over those assets.

In the context given, Martin can manage the real estate investments within the trust and choose to distribute proceeds to his son as needed or as specified in the trust terms. This flexibility is a significant benefit of living trusts, allowing for efficient management and distribution without the necessity of going through probate after the trust creator's death.

Other types of trusts, while having their purposes, do not align as closely with Martin's objectives. A revocable trust is similar to a living trust but does not specifically denote the ability to distribute proceeds in a specific manner. An irrevocable trust generally relinquishes control of the assets to the trust, which may not allow Martin to manage the investments in the way described. A testamentary trust, on the other hand, is created through a will and comes into effect only after the individual’s death, which would not permit Martin