Future Business Leaders of America (FBLA) Agribusiness Practice Test

What is the purpose of a trust corpus?

1. To outline the duties of the trustee

2. To define the scope of the trust

3. To describe the assets held within the trust

4. To list the beneficiaries of the trust

The correct answer is: To describe the assets held within the trust

The purpose of a trust corpus is to describe the assets held within the trust. The term "corpus" refers specifically to the property, assets, or funds that are placed into the trust. This can include real estate, stocks, bonds, cash, or other tangible or intangible assets. Understanding what is included in the trust corpus is essential for both the trustee, who manages the trust, and the beneficiaries, who receive the benefits from it. By clearly identifying and outlining the assets, the trust ensures that there is a clear understanding of what is available for distribution or management, thus facilitating the trust's intended purpose. The other options pertain to different aspects of a trust. For instance, outlining the duties of the trustee focuses on the responsibilities and obligations of the individual administering the trust, while defining the scope of the trust pertains to the parameters within which the trust operates. Additionally, listing the beneficiaries concerns identifying those who will benefit from the trust but does not directly address the assets involved. By emphasizing the assets held, the trust corpus provides a foundational element essential to the overall function and clarity of the trust arrangement.