Blind Trust Example

Most often associated with politicians blind trusts.

Blind trust example.

For example government officials and politicians often establish blind trusts to avoid any perceived or real conflicts of interest between their own agendas and the good of their constituents. The trustee has control over the assets and investments while managing. Model qualified blind trust agreement this is the model agreement that an executive branch employee must use when establishing a qualified blind trust. A blind trust can eliminate any conflicts of.

A blind trust is a living trust where a trustee controls the assets without the grantor and beneficiary. Lottery winners may opt to create a blind trust to keep their winnings out of the public eye. For example a corporate executive who is compensated with shares of the company s stock might set up a blind trust to manage these shares. Link to pdf version.

For example a politician actively opposing the national rifle association might not want it known that he owns considerable stock in a company that produces firearms. A bank trust or brokerage company authorized to exercise fiduciary powers an individual who is an employee of any such fiduciary a law firm or an attorney and a disinterested party other than the public official or employee s spouse child. A blind trust is a trust agreement where neither the trustor or the beneficiaries have any control or influence over the assets in the trust. He can sell the stock but this might not be financially advantageous so he might place it in a blind trust for his heirs instead.

Once assets are transferred to a blind trust the trustee is able to freely buy and sell assets according to the mandates of the trust agreement. A blind trust is a type of trust fund that s designed to mask the assets therein from the person or persons designated to receive the proceeds. Blind trusts can be revocable or irrevocable. Additionally lottery winners often set up blind trusts in order to protect their privacy.

A blind trust is a trust established by the owner or trustor giving another party the trustee full control of the trust. An irrevocable blind trust is also the best way to maintain fairness and harmony among multiple winners.