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.
Read more about Blind Trust: British Party Funding
Famous quotes containing the words blind and/or trust:
“Let them alone: they be blind leaders of the blind. And if the blind lead the blind, both shall fall into the ditch.”
—Bible: New Testament Jesus, in Matthew, 15:14.
Referring to the Pharisees.
“I confess that I have hitherto indulged very little in philanthropic enterprises.... While my townsmen and women are devoted in so many ways to the good of their fellows, I trust that one at least may be spared to other and less humane pursuits. You must have a genius for charity as well as for anything else. As for Doing-good, that is one of the professions which are full.”
—Henry David Thoreau (1817–1862)