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Trust principal, sometimes referred to as the corpus or body of the trust, decreases when:
The trust receives a settlement in a lawsuit.
The trustee transfers accumulated income not required to be distributed into principal.
The sale of trust property results in a capital loss.
The grantor makes additional contributions to the trust.

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asmawasma448
Trust principal decreases when the trustee transfers accumulated income not required to be distributed into principal. 2
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