Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, November 17, 2017

Shedding Light On Blind Trusts

000A blind trust is a legal entity wherein the individual establishing the trust, the settlor, transfers assets to a trustee to manage without the settlor’s knowledge of how the assets are being managed. These trusts are typically used by politicians and executives who are concerned with conflict-of-interest issues. For executives, blind trusts have a number of additional practical uses. Blind trusts allow executives to decrease portfolio risk by diversifying their assets outside of company holdings. They also allow for professional management, a consistent income stream, and are not subject to probate. Used properly, blind trusts aid those seeking to avoid conflicts-of-interest while offering significant value.

See Kathryn E. Szewczyk & Christopher G. Mehne, Shedding Light On Blind Trusts, Financial Advisor, June 22, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2017/11/shedding-light-on-blind-trusts.html

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Comments

Great illustration to go with the article.

Posted by: Howard Zaritsky | Nov 18, 2017 11:40:48 AM

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