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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.



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Schwarzenegger placed his extensive holdings in real estate, stock and other investments in a blind trust after he was elected in 2003.
He poured scorn on big Labour donors who have been given peerages and jobs in government and questioned anonymous donations to blind trusts run by Mr Blair's lieutenants.
The move risks breaching Blair's own code-of-conduct which insists ministers are kept at arm's length from blind trusts which run their financial affairs.
 
 
 
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