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 ?
A legislator can establish a blind trust by transferring control of his or her financial interests to an independent third party authorized to buy and sell assets without the legislator's knowledge.
Pebblebrook successfully raised $350 million in a blind trust in December to buy distressed hotels.
A blind trust puts your investment decision beyond reproach when it comes to conflict of interest, but it also forces you to relinquish control.
He authorised the release of a letter from Cabinet Secretary Sir Andrew Turnbull saying he had not broken the ministerial code of conduct by ordering his so-called blind trust to buy the property.
The governor's office did not respond to requests for the Perrys' 2010 return and did not volunteer the market value of their blind trusts.
Tory leader Iain Duncan Smith has perfectly valid grounds for seeking an inquiry and clarification of the academic point of whether the code on blind trusts applies to property dealings.
It risks breaching Blair's own code of conduct which insists ministers are kept at arms lengths from blind trusts which run their financial affairs.
Its rules on blind trusts do not distinguish between property and shares.
Blind trusts were used by Blair and other senior Labour figures to shield the identities of donors and to avoid accusations of sleaze.
Blind trusts were used by senior Labour figures to shield the identities of donors and avoid accusations of sleaze.