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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
Why a Will Must Have a Residuary Clause. A will is a must-have for any estate plan, but a will does not normally distribute each and every piece of personal and real property owned by an individual. A Residuary Clause is a provision in a will that disposes of property not expressly disposed of by other provisions, and is often overlooked by those who choose to prepare a will on their own.