What is a residuary trust?
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 ReadingFull Answer
A residuary trust is typically the property of the decedent's equal to the remaining exclusion amount, as noted on the Business Dictionary website. It is part B of the A-B trust, otherwise referred to as the marital residuary trust. The A-trust is all of the decedent's assets that in excess of the allowed exclusions. This is designed as a catch-all to any assets not specifically gifted in the trust, states Dennis Fordham, an tax attorney writing for Lake County News.
Learn more about Financial PlanningRelated Questions
-
Q:
What are the benefits of living in Hainesport, NJ?
A: A benefit of living in Hainesport, New Jersey, is the ability to make a basic trust jointly with a spouse. There is also the Liberty Science Center, an all... Full Answer >Filed Under: -
Q:
Why should you put property into a trust?
A: Reasons for putting property into a trust include saving on estate taxes, avoiding probate, and having someone manage the trust and the property in it if t... Full Answer >Filed Under: -
Q:
What are some things that must be included in a special needs trust form?
A: The special needs trust form includes names and addresses of the grantor and trustee, the trust property, and name of the beneficiary, states US Legal. The... Full Answer >Filed Under: -
Q:
What is a 125 cafeteria plan, and how do you start one?
A: A 125 cafeteria plan is a benefit plan that allows employees to withhold part of their pre-tax salaries to cover qualified expenses, reports Entrepreneur. ... Full Answer >Filed Under:
