Blind Trust Example

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

Blind trust example.

The trustee has control over the assets and investments while managing. 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. Link to pdf version. 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. 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. 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. Model qualified blind trust agreement this is the model agreement that an executive branch employee must use when establishing a qualified blind 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. A blind trust is a living trust where a trustee controls the assets without the grantor and beneficiary. 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.

Additionally lottery winners often set up blind trusts in order to protect their privacy. 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. 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. Blind trusts can be revocable or irrevocable.

An irrevocable blind trust is also the best way to maintain fairness and harmony among multiple winners. 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.