What term refers to the principal or capital of an estate, as distinguished from income?

What term refers to the principal or capital of an estate, as distinguished from income?

• A. Gains
• B. Residue
• C. Corpus
• D. Income

Answer: (C)

In this context, the principal or capital of an estate is called the corpus. The corpus is the underlying assets that generate income over time (like interest, rents, or dividends). The other terms describe different ideas: gains are increases in value from sales, income is the money earned from the corpus, and residue refers to what remains after debts, expenses, and specific bequests have been paid. So corpus is the best fit because it specifically names the principal assets themselves, distinct from the earnings they produce.

In this context, the principal or capital of an estate is called the corpus. The corpus is the underlying assets that generate income over time (like interest, rents, or dividends). The other terms describe different ideas: gains are increases in value from sales, income is the money earned from the corpus, and residue refers to what remains after debts, expenses, and specific bequests have been paid. So corpus is the best fit because it specifically names the principal assets themselves, distinct from the earnings they produce.