blind trust

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blind trust

n.
A trust in which a person places his or her investments or assets under the control of an independent trustee and is not advised as to the trustee's decision making regarding the investments or assets, so as to prevent the expectation of personal profit or benefit from influencing the person's actions.

blind trust

n
(Banking & Finance) a trust fund that manages the financial affairs of a person without informing him or her of any investments made, usually so that the beneficiary cannot be accused of using public office for private gain

blind′ trust′


n.
a trust in which the financial investments of a public official are administered solely by a trustee, without the official's participation, so as to avoid conflict of interest.
[1965–70]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.blind trust - a trust that enables a person to avoid possible conflict of interest by transferring assets to a fiduciary; the person establishing the trust gives up the right to information about the assets
trust - something (as property) held by one party (the trustee) for the benefit of another (the beneficiary); "he is the beneficiary of a generous trust set up by his father"
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References in classic literature ?
In young, childish, ignorant souls there is constantly this blind trust in some unshapen chance: it is as hard to a boy or girl to believe that a great wretchedness will actually befall them as to believe that they will die.
But now necessity was pressing hard upon her--now the time of her marriage was close at hand--she could no longer rest in this blind trust. She must run away; she must hide herself where no familiar eyes could detect her; and then the terror of wandering out into the world, of which she knew nothing, made the possibility of going to Arthur a thought which brought some comfort with it.
Crime may be forgiven; uncalculating sacrifice, blind trust, burning faith, other follies, may be turned to account; suffering, death itself, may with a grin or a frown be explained away; but passion is the unpardonable and secret infamy of our hearts, a thing to curse, to hide and to deny; a shameless and forlorn thing that tramples upon the smiling promises, that tears off the placid mask, that strips the body of life.
Disclosure requirements and conflict of interest laws help protect against the perception of legislative self-dealing, but blind trusts provide a way for lawmakers to preserve personal financial interests while avoiding lengthy disclosures and the need for recusals.
Hillary Clinton famously invoked the African proverb "It takes a village to raise a child," and though real estate transactions are a matter of public record, it also sometimes takes a village of intrepid informants to sort out ownership of properties purchased through inscrutable blind trusts and mysterious corporate concerns.
"We have been battling for 11 years to get the proper legal procedures followed, which meant we had to get all the parties that had interest in the property in front of the court and it could probably make a TV movie, there were blind trusts at a bank in Chicago and people that didn't exist, it was a nightmare to be honest."
Up to 15 ministers, including Francis Maude and Ken Clarke, have "blind trusts" which let them profit from business actvities without raising conflicts of interest.
Blind trusts have been used by ministers in the past so they are not aware of what shares they own.
Other REITs, known as blind trusts, have no property yet but want to take advantage of pending bargains.
QUESTIONS were today being asked about the use by ministers, including Business Secretary Lord Mandelson, of "blind trusts" to avoid conflicts of interest in their Government work.
In addition, the Associated Press reported Frist earned tens of thousands of dollars from HCA stock in a partnership controlled by his brother, outside of the blind trusts he created to avoid a conflict of interest.
If you serve on multiple boards and have a substantial stock portfolio, you may also consider putting your assets into a blind trust. Blind trusts can be established for a limited period of time, or for as long as certain situations exist, such as the time you serve as chairman of a board.