Blind Trust

DEFINITION of 'Blind Trust'

A trust in which the executors have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust.

BREAKING DOWN 'Blind Trust'

Blind trusts are generally used when a trustor wishes to keep the beneficiary unaware of the specific assets in the trust, such as to avoid conflict of interest between the beneficiary and the investments.

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RELATED FAQS
  1. What percentage of withdrawals from a trust fund is taxed?

    I have an inherited a trust fund. This is the first time I have considered pulling money from the account.  ... Read Answer >>
  2. What are the keys to setting up a trust fund?

    Setting up a trust to secure your assets for a beneficiary allows you to set the terms under which the beneficiaries are ... Read Answer >>
  3. How to name a trust as a secondary beneficiary on life insurance?

    My spouse is the first beneficiary on my life policy. How do I correctly word my trust as the secondary? Do I specially name ... Read Answer >>
  4. How are trust fund earnings taxed?

    Trust fund earnings that are distributed are paid by the beneficiary. The trust pays taxes on retained earnings and principal ... Read Answer >>
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