blind trust
Noun: A blind trust is a specific type of financial trust in which the person who creates the trust (the grantor or beneficiary) gives up all knowledge and control over the assets placed into it. The assets are managed by an independent trustee, who makes all investment decisions without informing or consulting the beneficiary. The primary purpose is to eliminate conflicts of interest, particularly for individuals in public office or positions of influence, by creating a complete separation between their personal finances and their professional duties.
A blind trust is established to ensure impartiality. The beneficiary cannot direct investments or receive details about the trust's holdings, thus preventing decisions made in their official capacity from being influenced by personal financial gain.
- The senator placed her investment portfolio into a blind trust upon taking office.
- To avoid any appearance of impropriety, the company required its executives to use a blind trust for their stock holdings.
- He has no knowledge of what is in his blind trust; the independent trustee manages everything.
- "To place/assets in a blind trust": This is the standard phrasing for establishing one.
- The minister was required to place his business assets in a blind trust.
- The concept is often discussed in political ethics, corporate governance, and legal contexts concerning fiduciary duty.
- Trust (n): A fiduciary arrangement where a trustee holds and manages assets for a beneficiary's benefit. A blind trust is a specialized form of a trust.
- Fiduciary (n/adj): (n) A person or entity that holds assets in trust for another, with a legal duty to act in the other's best interest. (adj) Relating to such a duty.
- Conflict of Interest (n): A situation where a person's personal interests could improperly influence their professional judgment or duties. A blind trust is designed to mitigate this.
- Confidential trust
- Independent trust (in specific legal contexts)
- There are no direct phrasal verbs or idioms associated with the specific term blind trust. It functions as a fixed compound noun.
- The effectiveness and true "blindness" of such trusts can be a subject of legal and ethical debate.
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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
