Definition of Blind Trust



What is a "blind trust"? What is the definition of the term "blind trust"?

If you have been following the race for the Republican Presidential nomination over the past few months, you have almost certainly heard the term "blind trust" being mentioned.

A "blind trust" is a trust (which itself is defined as a property interest held by one person for the benefit of another) in which the executors have full control over what the trust is investing in.

Definition of the term Blind Trust - Politics and Finance DictionaryThe term "blind trust" refers to the fact that the beneficiaries of the trust are unaware as to what the trust is invested in.

So, let's say that Joe Smith sets up a "blind trust" for his three kids. The blind trust will be called the "Joe Smith Blind Trust".

XYZ, Inc. is the company that will be running the blind trust. XYZ, Inc. is the executor of the blind trust and will have full authority over what the trust is investing in.

Furthermore, Joe Smith's three kids will be unaware as to what the trust is investing in, as they are the beneficiaries.

Blind trusts are particularly handy for politicians who wish to avoid conflicts of interest.

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