Blind Trust Example

The trustee has control over the assets and investments while managing.

Blind trust example.

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. 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. 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. Lottery winners may opt to create a blind trust to keep their winnings out of the public eye.

A blind trust shall comply with the following conditions. Most often associated with politicians blind trusts. A blind trust is a living trust where a trustee controls the assets without the grantor and beneficiary. Model qualified blind trust agreement this is the model agreement that an executive branch employee must use when establishing a qualified blind trust.

A the trustee of a blind trust shall be. A blind trust can eliminate any conflicts of. Additionally lottery winners often set up blind trusts in order to protect their privacy. For example if you purchased your winning ticket with a group of office mates as long as everyone is in agreement you can set up a blind trust with all the winners as beneficiaries.

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. Blind trusts can be revocable or irrevocable. An irrevocable blind trust is also the best way to maintain fairness and harmony among multiple winners. Link to pdf version.

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. 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.