${site.data.firmName}${SEMFirmNameAlt}
Contact Us For A Consultation
302-644-7181 Lewes
302-697-4900 Camden

The uses of a blind trust

Individuals in Delaware may wonder what is meant by the term "blind trust" and whether a blind trust would be a useful estate planning tool. In general, blind trusts are used by public figures to separate themselves from direct association with one of their sources of wealth. The "blind" in the name of the trust refers to the fact that a settlor places certain assets in the trust for a trustee to manage without the settlor's input as to how the trust is being managed.

One example of a situation in which such a trust would be used is if a person is a politician with assets that might appear to create a conflict of interest. With a blind trust, the person can turn the assets over to someone else to manage and would therefore be not be able to derive any influence therefrom.

In other ways, a blind trust resembles other types of trust. In addition to a trustee, a beneficiary is designated to receive the trust's proceeds. The settlor who owns the assets and establishes the trust may also be the beneficiary.

Even if an individual is not a politician, there may be other reasons to set up a blind trust. For example, a person might be the prominent director of an organization with assets that either conflict with the goals of that organization or that might appear to unduly influence the director's decisions. In such a case, setting up a blind trust may distance the original owner from the assets and any decision-making about them. While the choice of a good trustee is always important, it is even more so with a blind trust since the settlor and beneficiary must have no knowledge as to how the trust is being managed.

No Comments

Leave a comment
Comment Information

What Our Clients Say About Us…

My wife and I would like to take this opportunity to highly recommend the legal practice of Bonnie Benson and her very professional staff… Bonnie and her staff are organized, engaged in the client's case and they communicate effectively.

Read More
Latest Blogs
Get The Help Now

Need Answers Now? Contact Us Immediately

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

your success. our commitment. elder counsel excellence in elder law  and special needs state bar delaware association

Camden Office
306 East Camden Wyoming Avenue
Camden, DE 19934

Phone: 302-697-4900
Fax: 302-697-4901
Camden Law Office Map

Lewes Office
33718 B Wescoats Road
Lewes, DE 19958

Phone: 302-644-7181
Fax: 302-644-7182
Lewes Law Office Map

We Accept visa mastercard discover network
Review Us