In the context of preneed trusts, what term is used to describe the pool of assets securing the trust?

• A. Principal
• B. Corpus
• C. Reserve
• D. Endowment

Answer: (B)

In preneed trusts, the assets set aside to fund the promise are described as the corpus. This term refers to the principal body of trust property the trustee holds for the beneficiaries, invested to produce earnings that can be used to fulfill the contract. The corpus stays as the securing pool for the obligation, while any income generated from it is handled according to the trust terms. Endowment implies preserving principal forever with income allocated, which isn’t the standard structure for a typical preneed trust, and reserve isn’t the formal term used for these trust assets. So the pool of assets securing the trust is called the corpus.