Trust Corpus

Trust Corpus

The trust corpus, also known as the principal or body of the trust, refers to the assets that are placed into a trust for management and distribution according to the terms of the trust agreement. These assets can include a wide range of property types, such as cash, real estate, stocks, bonds, or business interests.

The trust corpus is distinct from the income generated by the trust assets. For example, if a trust holds rental property, the trust corpus is the property itself, while the rent collected from tenants represents the income that may be distributed to beneficiaries or reinvested in the trust.

The management of the trust corpus is typically overseen by a trustee, who has a fiduciary duty to act in the best interests of the beneficiaries. The trustee is responsible for making investment decisions, ensuring the proper maintenance of the assets, and adhering to the distributions outlined in the trust document.

In Texas, including Houston, understanding the implications of the trust corpus is essential for effective estate planning. This ensures that property is managed according to the grantor’s wishes and can help minimize estate taxes and avoid probate.