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.
With a blind trust, you let someone else make your trading decisions according to your guidelines but without your involvement or even knowledge.
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.
Friends of Mr Robinson claim he has been threatened with retaliation from Downing Street if he presses ahead with the publication of the autobiography which contains damaging allegations about a pounds 200,000 donation he made to a "blind trust" used to fund Tony Blair's office before the 1997 election.
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. In 2009, the governor's office pegged the value of the trust at $896,000.
Downing Street confirmed the Blairs had used money in a so-called "blind trust" to buy the flats in Bristol at the centre of the row.
The money was reportedly paid into the "blind trust" set up to finance the Blair machine without him knowing who had donated it.
Its rules on blind trusts do not distinguish between property and shares.
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.
Members of the Government, including Mr Blair and Mr Brown, dismantled their blind trusts used in opposition after the 1997 election.
Blind trusts were used by Blair and other senior Labour figures to shield the identities of donors and to avoid accusations of sleaze.