The Trust Corpus (or Principal) refers to the total value of the assets held within a trust. This can include cash, real estate, stocks, bonds, and other forms of property that are placed into the trust for the benefit of the beneficiaries.
When a trust is established, the corpus is the foundational property that the trustee manages according to the terms of the trust document. The growth or income generated from the corpus, such as interest or dividends, can be distributed to beneficiaries or reinvested back into the trust, depending on the trust’s provisions.
For example, if a trust is funded with $100,000 in stocks, that amount represents the initial corpus. If the stocks generate an annual income of $5,000, this income may be distributed to the beneficiaries, while the corpus remains intact for future growth or distributions.
In estate planning, understanding the trust corpus is crucial as it affects the value of the trust and the benefits provided to beneficiaries. Additionally, it’s important to note that in Texas, certain specific regulations may apply to the management and distribution of trust corpus, particularly in relation to taxation and probate processes.
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