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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
Unlike an irrevocable trust, a revocable trust is an arrangement where a grantor transfers assets to a beneficiary, but the grantor can modify, amend or terminate the trust up until his death. The beneficiary of a revocable trust does not have any legal rights to any of the assets of the revocable trust. In a revocable trust, the grantor could change the beneficiaries at his choice. Therefore, the beneficiary is not guaranteed or promised any of the assets. Contrary to an irrevocable trust, a revocable trust is not considered a separate entity from the grantor.