What Is a Blind Trust?
A blind trust is one in which the trustor, or creator of the trust, has no knowledge of aspects of how the assets in the trust are managed. As should be clear, a blind trust has limited use, but for certain individuals it is suitable. A trust lawyer in College Station will work with you to determine whether a blind trust would benefit you, or whether you would be best served through some other form of trust.
What Is a Blind Trust?
A blind trust differs from other trusts in certain very striking ways. In essence, whereas the settlor of most types of trusts has a degree of power over the assets, in a blind trust such is not the case. Rather, a trustee is given power of attorney which renders him full discretion over the handling of assets held in trust. The settlor forfeits any right to intervene in the managing of the funds.
One may wonder how a blind trust could benefit anyone. However, as a trust lawyer in College Station will tell you, for certain individuals it proves very useful. These are generally those who need to retain a degree of anonymity, such as lottery winners and inheritors of large fortunes. Others who would benefit are those in public office, judges, and business executives. These individuals place assets into blind trusts so that there is no conflict of interest between the beneficiary and investments. They do this so that they will avoid even the potential of suspicion by the public.
How Would I Set up a Blind Trust?
As with other trusts, the first step in creating this unusual trust is to gather necessary documentation for the assets that are to be transferred into it. You will then need to appoint a trustee. With all trusts it is important that this individual be one you can trust implicitly. Given the nature of the blind trust this is even more important.
Your next step will be to create the trust agreement. This needs to state how the trustee will disburse assets to you. It should also include a timeline for when the trust will end. You will then sign and notarize the agreement and transfer the assets.
If You Are Interested in Setting up a Blind Trust
It is important that you work with a lawyer from a reputable trust lawyer in College Station when creating your blind trust. Peterson Law Group endeavors to provide clients with the highest standards of legal representation. Call us today at 979-703-7014.