blind trust definition

blind trust

Type of trust in which the trustor (who is usually also the beneficiary of this trust) is prevented from knowing how his or her money is invested by the trustee. Blind trusts are created to avoid any potential conflict of interest between the duties of a public officeholder and his or her choice of investment portfolio. The trust funds are placed at the full discretion of a trustee (such as a trust company) independent of the trustor in name and reality.

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