A trust that results from a fiduciary third party, such as an investment bank, money management firm or other trustee, assuming complete control of the assets held in a trust. As such the third party has complete discretion to make investments on behalf of the beneficiaries who are not informed about the nature, management, or holdings of the trust. For example, elected officials or politicians are often required to place their assets in a blind trust so that the public can be reassured that political decisions are not being made by those individuals for personal financial benefit.
May 21, 2024
