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A blind trust is most common with public officials whose decisions can directly affect the financial markets, but another example would be creating a blind trust to hide its monetary value from an individual whose behavior and actions would change if they were privy to it.
Blind Trust Drawbacks ?The blind trust also poses the issue of less trustee accountability, as the beneficiaries are not able to inspect whether the assets are being managed responsibly.? You can also expect extra fees with this arrangement.
How to Set Up a Blind Trust Gather the documentation for the assets that you want put into the blind trust. ... Appoint a trustee. ... Create the trust agreement. ... Sign the trust and have it notarized, taking care to follow any recording laws that your state has. Officially transfer the relevant assets into the trust.
In a blind trust, an individual places assets that could otherwise create conflicts of interest into an asset vehicle ("trust"). Control over the trust and its assets are given to an independent trustee, who may buy and sell assets without the knowledge or consent of the beneficiary ("blind").
The trustee has control over the assets and investments while managing the assets and any income generated in the trust. Blind trusts are often established when individuals want to avoid conflicts of interest between their employment and investments.