Duhaime's Law Dictionary


Blind Trust Definition:

A trust in which a settlor reserves the right to terminate the trust but to assert no other power over the trust, which is administered without any other measure of control over the trust's administration.

Related Terms: Bare Trust, Testamentary Trust

A trust set up by a settlor who reserves the right to terminate the trust but other than that, agrees to assert no power over the trust, which is administered without updates, advice, instruction or account to the beneficiary or settlor, or the retention of any other measure of control over the trust's administration except the right to terminate it.

In Canada, for example, it is common for government ministers to vest all their investment property to a blind trust for their duration of their tenure, to avoid any conflict of interest.

REFERENCES:

Categories & Topics:


Always looking up definitions? Save time with our search provider (modern browsers only)

If you find an error or omission in Duhaime's Law Dictionary, or if you have suggestion for a legal term, we'd love to hear from you!