Blind Trust Example

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 trust example.

Blind trusts can be revocable or irrevocable. Model qualified blind trust agreement this is the model agreement that an executive branch employee must use when establishing a qualified blind trust. Link to pdf version. 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.

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. A blind trust can eliminate any conflicts of. 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. Lottery winners may opt to create a blind trust to keep their winnings out of the public eye.

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

A blind trust shall comply with the following conditions. A the trustee of a blind trust shall be. A blind trust is a living trust where a trustee controls the assets without the grantor and beneficiary. 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.

Most often associated with politicians blind trusts. 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.