If you work in a business, you may have heard of the phrase “trust corpus.” This term is often associated with legal matters and estate planning, but many people don’t understand what it means and how it could potentially affect their business. In this article, we will explain what trust corpus is and how it is used in estate planning.
Trust Corpus Explained in Plain Terms
Simply put, trust corpus is the sum of money or assets that are put into a trust account. A trust is a legal arrangement created by a person or entity in order to manage, protect, and pass on property or other assets to a designated beneficiary. Trusts can be used to provide a difficult-to-inherit property and help reduce or avoid taxes. Trusts can also be used to manage assets for minor family members such as young children.
How Is Trust Corpus Used?
Trust corpus is typically used to provide income or a lump sum to the beneficiary. The trust corpus can be divided into installments or disbursed according to the creator’s wishes. For example, parents may create a trust corpus for their child’s college education, or a family may create a trust corpus to provide income for a relative who is ill. The trust corpus can also be used to pay off debts or provide for estate taxes.
Trust Corpus and Modern Estate Planning
Trust corpus is an important part of modern estate planning. A trust can be used to ensure that a person’s wishes are followed, provide tax benefits, and manage assets to protect the beneficiary’s financial interests. Talk to a trusted legal advisor to learn more about how a trust corpus can help ensure that your estate is properly managed and your wishes for family members are carried out.