an arrangement whereby a person, such as a public official, in an effort to avoid conflicts of interest, places certain personal assets under the control of an independent trustee with the provision that the person is to have no knowledge of how those assets are managed
blind trust definition by American Heritage Dictionary
A financial arrangement in which a person, such as a high-ranking elected official, avoids possible conflict of interest by relegating his or her financial affairs to a fiduciary who has sole discretion as to their management. The person choosing the trust also gives up the right to information regarding the status of the assets.
A fiduciary-managed trust in which the beneficiaries do not have knowledge of the trust's assets. Blind trusts are frequently utilized by public officials who want to avoid the public perception of a conflict of interest.
trust whose owner cannot be informed about which investments have been bought
or sold. This kind of trust is created when someone puts his or her assets into
a trust and gives a fiduciary party, such as a bank or asset manager, complete
authority to make investments on his or her behalf. Blind trusts are often set
up by politicians or high-ranking government officials as a way of avoiding
potential conflicts of interest by investing on issues or creating government
policies that could benefit individual investments.