A blind trust is a trust in which the beneficiaries are unaware of the trust's specific assets, and in which a fiduciary third party has discretion over all management of the trust assets. For example, politicians may use a blind trust to hold their assets while they're in office to avoid conflict of interest accusations. Blind trusts are set up with grantor and beneficiary being the same, and a trust company as trustee. The trust company holds stocks, bonds, real estate, and other income-generating property in trust for the beneficiary, but the beneficiary lacks knowledge of what stocks or bonds or real estate or other investments are in the trust.
This trust is not meant for a politician but for a person in private life who desires a blind trust. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Hawaii Blind Trust Agreement is a legal arrangement designed to create a separation between a private individual's financial assets and their public or government responsibilities. This type of trust agreement ensures that the individual's personal assets are managed independently, without any conflicts of interest or biased decision-making. In Hawaii, there are different types of Blind Trust Agreements available for private individuals, distinct from those established for government entities. These include: 1. Private Individual Blind Trust Agreement: This is a trust agreement created by a private individual to shield their personal assets from potential conflicts of interest arising from their public or government-related responsibilities. It ensures that financial decisions are made exclusively in the best interest of the trust beneficiaries, without any influence from the individual's public position or obligations. 2. Executive Blind Trust Agreement: This type of Blind Trust Agreement is specifically tailored for high-ranking executives or officers serving in government or public positions. It allows them to transfer their financial assets into the trust, ensuring a blind management of investments and avoiding any direct involvement or knowledge of the trust's financial transactions. 3. Political Blind Trust Agreement: This agreement is commonly used by politicians or individuals involved in governmental affairs. It aims to prevent potential conflicts of interest that may arise due to the individual's political activities or public office. By placing their assets in a blind trust, politicians can alleviate concerns regarding biased decision-making or influence from personal financial interests. 4. Trust Agreements for Public Officials: These agreements are specific to public officials who hold positions of authority in government entities. Public officials are required to divest their financial interests, including stocks, bonds, and other investments, into the blind trust to ensure their decision-making is free from any financial influence. It is important to note that each Blind Trust Agreement may vary in its terms and conditions. However, the primary objective of all Hawaii Blind Trust Agreements for private individuals is to maintain transparency, avoid conflicts of interest, and ensure impartiality in decision-making processes related to their public duties.
