Which term means the corpus or principal, i.e., the money or assets that are in the trust?

• A. Fiduciary duty
• B. Income
• C. Corpus or principal
• D. Inter vivos or living trust

Answer: (C)

Understanding the distinction between the assets held in a trust and the earnings they generate is key. The corpus, also called the principal, refers to the money or assets placed into the trust—the actual trust property that the trustee holds and manages. This is the base capital of the trust. Income, on the other hand, is the earnings produced by that corpus—such as interest, dividends, rents—that may be distributed to beneficiaries or added to the corpus depending on the trust terms. An inter vivos or living trust simply describes a trust created during the grantor’s lifetime, not the property itself. Fiduciary duty is the trustee’s legal obligation, not the assets. Therefore, the term for the money or assets in the trust is corpus or principal.