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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
Discretionary (Family) Trusts What is a Discretionary Trust? A trust is a relationship where a person (called the trustee) is under an obligation to hold property for the benefit of another person (the beneficiaries). In a discretionary trust (sometimes called a âfamily trustâ), the trustee has the power to determine which beneficiaries receive the property or assets from the trust and how much each is to receive. The discretionary power of the trustee is limited to a nominated class of beneficiaries that are outlined in the trust.