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 ?
Disclosure requirements and conflict of interest laws help protect against the perception of legislative self-dealing, but blind trusts provide a way for lawmakers to preserve personal financial interests while avoiding lengthy disclosures and the need for recusals.
By April, Sitton had promised to step down from his position as president and CEO and place his assets in a blind trust, saying he was going "beyond what is required by the statutes" to "avoid even the appearance of a conflict."
"Malicious actors have taken note of this blind trust, and use it nefariously against organisations who have no ability to detect anomalies or to respond to attacks on trust.
In 1977, she put her firm in a blind trust to serve as New York State's first woman superintendent of banking for five years.
During a squabble about whether Romney had investments in Chinese companies, Romney said his investments were managed by a blind trust.
Brad Walt, the trustee of the Romney's blind trust, said that the Republican candidate paid USD 1,935,708 in 2011 taxes on USD 13,696,591 in income, paying an effective tax rate of 14.1 percent, below the average rate of 15 percent for American taxpayers.
Nicholas Shaxson, for Vanity Fair, scrutinizes the releases and finds a Romney-linked blind trust, a hedge fund that purchases debt in struggling economies and then sues for repayment, and an offshore investment firm set up for tax avoidance.
Labour MSP John Park said: "It is a surprise to find the money is not in a blind trust."
Pebblebrook successfully raised $350 million in a blind trust in December to buy distressed hotels.
Pinera, who also owns one of the country's four television networks and the popular Colo-Colo football club, set up a blind trust to manage about $500m of his fortune, and promised specifically to sell his LAN investment if he won the election.
In an interview with CNN's Larry King, the president said his money was in a blind trust and that he last spoke with the trustees eight years ago.
You may be one of those who thinks that the Scotsman is a financial wizard whose mega-spending plan deserves blind trust.