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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 testamentary trust is a trust contained in a last will and testament that provides for the distribution of all or part of an estate and often proceeds from a life insurance policy held on the person establishing the trust.There may be more than one testamentary trust per will. 2. testamentary trust is provided for in a last will by the âsettlor,â who appoints a âtrusteeâ to manage the funds in the trust until the âbeneficiary,â or person receiving the money, takes over.