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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
A Rabbi Trust is a non-qualified deferred compensation arrangement in which funds are invested in an irrevocable trust to be held for the benefit of employees for retirement purposes. The funds contributed are tax deferred in a similar manner to other tax deferred vehicles such as the RPB 403(b) plan. The name âRabbi Trustâ was established because the first IRS letter ruling with respect to this type of trust involved a rabbi; however, the Rabbi Trust is widely utilized in commercial enterprises and not-for-profit organizations.