Blind trust


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Blind trust

A trust in which a fiduciary third party has total discretion to make investments on behalf of a beneficiary while the beneficiary is uninformed about the holdings of the trust.

Blind Trust

A trust where the beneficiary is not given knowledge of the assets in it. The trustee has knowledge of the assets and is responsible for investing them on behalf of the beneficiary. A grantor usually sets ups a blind trust to avoid potential conflicts of interest.

Blind trust.

A blind trust is created when a third party, such as an investment adviser or other trustee, assumes complete control of the assets held in a trust.

Elected officials often set up blind trusts to reassure the public that political decisions are not being made for personal financial benefit.

References in periodicals archive ?
When the stock market went down, it looks like he pulled out of the stock market, or at least his blind trust did, and he has a significant capital loss now.
He said it had become clear that the Downing Street media machine had been ``used to mislead the media'', and there were issues over the blind trust and possible interference in Mr Foster's deportation.
In the wake of the book's publication, the party conceded that cash donated by the ex-Paymaster General to general party funds might have been passed on to the blind trust.
Mrs Blair also addressed the question of the use of the Blair family so-called blind trust to purchase the two flats in Bristol where the couple's eldest son, Euan, is at university - which was questioned by the Tories in a letter last night to Cabinet Secretary Sir Andrew Turnbull.
Blind trusts are emerging as a new tool for the private sector as boards and business executives adjust to the new investment environment and calls for improved corporate governance practices.
But recent claims by Coventry North West MP and former Paymaster General Mr Robinson that he gave cash towards Mr Blair's office have been countered by Labour with the assertion that the money went to general party funds, some of which then went into the blind trust.
Downing Street and the Labour Party were yesterday sticking to the line that Robinson had not paid into the blind trust.
However, the governor wavered when asked to report to the public his personal assets, held in a blind trust as required by state ethics laws.
THE trustees of the blind trust which paid for Tony Blair's office while he was leader of the opposition last night publicly denied that Coventry MP Geoffrey Robinson had ever donated to the fund.
However, even when exceptions are granted, those covered by the new policy will still be required to follow strict guidelines to limit conflicts of interest such as transferring the securities to an independent investment manager with authority to trade the securities at his or her discretion or filing a Rule 10b5-1 plan of disposition (similar to a blind trust with liquidation instructions).
Mrs Blair also addressed the question of the use of the Blair family so-called blind trust to purchase the two flats in Bristol where the couple's eldest son Euan is at university - which has been questioned by the Tories in a letter to Cabinet Secretary Sir Andrew Turnbull.
His requests for blind trust have cost billions, and his insistence on secrecy shows disregard for our laws.