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
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    Setting up a trust to secure your assets for a beneficiary allows you to set the terms under which the beneficiaries are ... Read Answer >>
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    Trust fund earnings that are distributed are paid by the beneficiary. The trust pays taxes on retained earnings and principal ... Read Answer >>
  3. What is the difference between revocable and irrevocable intervivos trusts?

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