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Quick Answer. A residuary trust, also known as a B-trust, is the second part of a two trust arrangement that is created for the benefit of the trustor's spouse, states InvesterWords. This trust fund is not considered part of there estate, and is therefore not taxable to the trustor or the surviving spouse. Continue Reading
University of Minnesota Extension is an equal opportunity educator and employer. Revocable Living Trust: Many couples today use the Revocable Living Trust (RLT) as their primary estate planning tool. They choose a RLT because assets in an RLT pass outside the probate process, potentially saving thousands of dollars.