Blind trusts can benefit some Missouri residents who would like to avoid conflicts of interest. Politicians often use these types of trusts so that they can receive the benefits of their wealth without being accused of making political decisions that are affected by their personal financial holdings.
A blind trust is just like any other trust except that the beneficiary has no control or knowledge of how the trustee is using or investing the assets that are held in the trust. Typically, the beneficiary of a blind trust is also the settlor of the trust who has transferred control of the trust to a third party. By agreeing to set up a blind trust, the settlor allows the trustee to exercise complete control over the assets for the benefit of the trust’s beneficiaries.
Blind trusts are not as commonly used as other kinds of trusts because the benefits of these trusts only serve a small group of people. However, a blind trust can be vital for a person who makes public policy decisions that could potentially impact their own wealth. For example, a politician who has a lot of foreign assets may want to set up a blind trust so that they cannot be accused of trying to profit from foreign policy decisions.
There are many different kinds of trusts that can be created to serve an individual’s needs. Speaking with an estate planning attorney may be a good way for a person to determine what type of trust would be the most beneficial for their particular set of circumstances.