Blind Trust Attorney

Living trusts and estate plans.

Blind trust attorney.

These trusts are designed to prevent conflicts of interest and maintain privacy. Draft a trust agreement with an attorney to outline the parameters of the trust including if the trust is revocable or irrevocable and how the assets shall be distributed when the blind trust expires sign and notarize the agreement and if necessary report the trust to the state transfer assets to the trust. In comparison attorney s fees for drafting a will are much lower generally 200 to 400 for an individual and 300 to 500 for a couple. Regardless it s advised that you seek the counsel of a trusts attorney if you need to set up a blind trust.

A blind trust is a type of trust that is arranged in a way so that its beneficiaries will have no knowledge about the property or assets contained in the trust. The settlor that is the person whose assets fund the trust and the beneficiaries have no control over or knowledge of the status of the assets held in a blind trust. Establishing a blind trust basically involves drawing up a document that the grantor signs to give full power of attorney over the trust assets to an independent third party trustee in contrast. If you hire an attorney to create your living trust she will likely create the trust as part of a comprehensive estate plan.

In a blind trust the trustees fiduciaries or those who have been given power of attorney have full discretion over the assets. On december 28 2011 the california court of appeal simply and unequivocally ruled that the property party to a legal proceeding is not a. Blind trusts are generally used when a trust creator sometimes called a settlor trustor grantor or donor wishes for the beneficiary to be unaware of the specific assets in the trust such as to avoid conflict of interest between the beneficiary and the investments. Additionally in a blind trust set up the trustees and those who hold power of attorney will be given all control over the trust.

The trust instrument lays out all the trust s terms including naming the trustee establishing a payment schedule and naming beneficiaries to receive any remaining trust assets after you pass away. Thus the trustee is managing the assets for the benefit of the settlor. A blind trust is a living trust that is completely controlled by the trustee. In the typical blind trust the settlor is also the beneficiary.

The biggest pitfall in any litigation or arbitration brought or defended by a family living trust is the failure of the pleadings to properly identify the trustees of the trust as parties to the proceeding. Because the trustee has complete authority over asset management it s a good idea to name an investment firm trust company or an attorney to act as trustee. In a blind trust a settlor transfers assets to a third party who has complete discretion in how to use or invest the assets. Most people will never encounter a blind trust as they re primarily used by high profile corporate executives and elected officials with substantial financial assets.