Trust Principal (Corpus) refers to the underlying assets held within a trust—such as real estate, investments, cash accounts, or personal property—that are intended to support and ultimately pass to the beneficiaries. Traditionally, principal is preserved for remainder beneficiaries and distinguished from income, which is used to support the current beneficiary. This distinction can create tension between present and future interests. In modern estate planning, many grantors and families choose to relax or eliminate the strict division between income and principal, allowing the trustee broad discretion to use both for the primary beneficiary’s needs without concern about “wasting” assets or preserving a remainder interest that may ultimately never be reached.
