Definition
US trust that divides into two trusts upon the death of its settlor. One part (the A-trust) comprises of all the assets of the decedent which are in excess of the exclusions allowed at the time of his or her death, with the surviving spouse at its beneficiary. The other part (the B-trust) owns all the assets which are covered by the exclusions. This arrangement postpones the payment of estate taxes until the death of the surviving spouse. Also called marital residuary trust.
