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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 Discretionary Trust is a special kind of trust fund you set up for your sick relative. You set up the trust, and in your will, leave however much money, property, possessions, etc, you want to go to your mentally ill relative to the trust instead of the relative. second option is to leave the money to someone who is mentally well, and entirely trusted by you. You can then ask this person (example: the brother, sister or spouse of the person suffering from mental illness) to look after the person you intend the money for.