A blind trust is a trust in which beneficiaries do not know the specific assets of the trust and in which a third party trustee has discretion over the entire management of the trust. For example, politicians can use blind trust to keep their assets while they are in place to avoid conflicts of interest. Blind trusts are set up, the Grantor and the beneficiary being the same and a fiduciary company as a trustee. The trust company holds shares, bonds, real estate and other income-generating real estate in the trust of the beneficiary, but the beneficiary does not know what shares, bonds or real estate or other investments are in the trust. To establish a qualified blind trust, the Trust must meet the following requirements: (FL ST 112.31425) A trust is considered « blind » when it is created for the benefit of a person, spouse or dependent child and is placed under the direction and control of a trustee who is a bank or trust company with the authority to exercise fiduciary powers , a licensed lawyer or real estate agent, the: is independent of a party interested in the trust and is not related to it; is or has not been an employee of an interested party or organization related to an interested party and is not a partner or participates in a joint venture or other investment with an interested party; and is not a parent of a party. No direct or indirect communication through the trust may be made between the agent and an interested party about the trust, unless notification is made in writing, except for communications consisting exclusively of requests for the distribution of cash or other unspecified assets of the trust. Written communications are limited to the general financial interest and the needs of the interested party, including, but not limited to an interest in maximizing long-term income or capital gains. Interested parties do not seek information about the trust`s assets, including obtaining a copy of a filed trust statement or trust information, unless interested parties need to file tax returns. Tenn. Code Ann.
In a typical trust, the agent or initiator appoints an agent who acts as an agent, which means that the agent is responsible for compliance with the trust agreement, for example. B the allocation of funds after the death of the agent. The trust may contain a variety of investments, including stocks, bonds and real estate.