A Blind Trust is a trust in which the beneficiary (the person who will eventually receive the assets) does not have any knowledge of or control over the activities of the trustee. The purpose of a blind trust is to protect the beneficiary from any potential conflicts of interest that may arise from their involvement in managing their own financial affairs. For example, if an individual was elected to public office, they would be required to place their assets into a blind trust in order to avoid any potential conflict of interest between their political duties and personal investments.Blind trusts are also commonly used by wealthy individuals who want to ensure that their investments are managed prudently without them having direct control over how those investments are made. This can help reduce the risk that an individual will make impulsive or uninformed decisions about where they should invest their money. By placing these decisions into the hands of a professional trustee, investors can rest assured knowing that their money is being handled responsibly and with due diligence.Overall, there are many reasons why someone might choose to establish a blind trust for themselves or for another party. Whether it’s because you’re running for office and want to avoid any possible conflicts of interest, or you just want someone else making your investment decisions so you can focus on other things, there are plenty good reasons why this type of arrangement could be beneficial for you.
