A blind trust is a trust in which the fiduciaries, namely the trustees or those who have been given power of attorney, have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust and no right to intervene in their handling. Blind trusts are generally used when a settlor (sometimes called a trustor or donor) 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. Politicians or others in sensitive positions often place their personal assets (including investment income) into blind trusts, to avoid public scrutiny and accusations of conflicts of interest when they direct government funds to the private sector. A blind trust is often frequently used with those who have come across a fortune within a short period of time (e.g. an inheritance, or a multimillion lottery) in order to keep their identity anonymous to the public.
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Some articles on blind trust:
... sell his ownership in the CBA), places the league into a blind trust and accepts the head coaching job for the Pacers ... With the league in a blind trust there are no funds available to pay players, to buy plane tickets for road games, or to handle day-to-day operations ... The blind trust which hopes to find a new owner for the league abandons its efforts, and the league has over $2 million in debts ...
... Labour Party was in opposition in 1992–97, its front bench received funding from blind trusts ... The Neill Committee's report in 1998 found the use of blind trusts to be "inconsistent with the principles of openness and accountability" and recommended that such trusts be ...
... voluntarily placed his Hamilton County real estate holdings and businesses into a blind trust to avoid "even the perception of any conflict" ... On October 11, 2006, The Commercial Appeal reported that the blind trust that Corker set up to run his businesses to avoid conflicts of interest while he was mayor "may not have been all that blind" ... private company, the Corker Group, which was part of the blind trust, while he was mayor ...
Famous quotes containing the words trust and/or blind:
“I have known a vast quantity of nonsense talked about bad men not looking you in the face. Dont trust that conventional idea. Dishonesty will stare honesty out of countenance any day in the week, if there is anything to be got by it.”
—Charles Dickens (18121870)
“His speech is a burning fire;
With his lips he travaileth;
In his heart is a blind desire,
In his eyes foreknowledge of death:
He weaves, and is clothed with derision;
Sows, and he shall not reap;
His life is a watch or a vision
Between a sleep and a sleep.”
—A.C. (Algernon Charles)