CORPUS

Summary

In trust law, the corpus (also called the principal) represents the original assets that form the foundation of a trust. Think of it as the 'body' of the trust - the actual property, money, or investments that were initially placed into the trust by the settlor (trust creator). This is separate from any income, dividends, or profits that these assets generate over time. The corpus maintains its identity as the core asset base, while income flows from it separately and may be distributed according to different rules outlined in the trust document.

Usage Context

Understanding corpus is crucial when studying trust administration, estate planning, fiduciary duties, and the rights of different classes of trust beneficiaries. It's particularly important when analyzing how trusts balance the interests of current income beneficiaries versus remainder beneficiaries who will eventually receive the corpus.

Common Confusions

• Thinking that corpus and income are the same thing - they are legally distinct
• Assuming the corpus never changes in value - it can appreciate or depreciate
• Confusing who has rights to the corpus versus the income
• Not understanding that corpus can sometimes be distributed depending on trust terms
• Mixing up corpus with the total trust value at any given time