Confirm my understanding of setting up a Trust

[Mike Helminger]

I am considering setting up a trust. It would be for kids of a relative and it would be a grantor trust or revocable living trust (not sure which). The trustee would be me.

If I place an LP fund which holds an LLC real estate syndication into the trust, and the LLC fund produces income in the form of distributions and capital appreciation/gains, could the 'trust instrument' be used to direct all incoming proceeds to be invested into a bank which then places funds into a 529 plan? Further, after a liquidation event of the LP-LLC structure (5-10 years down the road), can the trust be dissolved or what becomes of it?

Further, would taxable gains be reported on my 1040 and not on a form 1041?