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.
A New York Blind Trust Agreement for a private individual is a legally binding document that allows individuals to manage their assets without having direct knowledge or control over them. This agreement is primarily designed to prevent conflicts of interest and maintain the privacy of the individual's financial affairs. It differs from a blind trust agreement for the government in its specific focus on private individuals rather than public entities. In New York, there are different types of blind trust agreements for private individuals, each serving a distinct purpose. These include: 1. Revocable Blind Trust: This type of agreement allows the individual to have some flexibility in managing their assets. The individual retains the ability to modify or revoke the trust agreement at any time. However, during the trust's duration, the individual has no knowledge or involvement in the management of their assets. 2. Irrevocable Blind Trust: In contrast to a revocable blind trust, an irrevocable blind trust cannot be modified or terminated by the individual once it is established. This type of trust provides a higher level of certainty when it comes to maintaining the privacy and separation of the individual's assets. The assets in this trust are managed solely by a designated trustee without any involvement from the individual. 3. Inter Vivos Blind Trust: This form of blind trust is established during the individual's lifetime and becomes operative immediately. It allows the individual to transfer their assets into the trust, to be managed by a trustee during the individual's lifetime, with specific instructions to take effect upon the individual's death or incapacitation. 4. Testamentary Blind Trust: Unlike an inter vivos blind trust, a testamentary blind trust is specified in the individual's will and only takes effect upon their death. It offers individuals the ability to manage their assets even after their demise, ensuring their wishes are carried out and the assets are protected from any conflicts of interest. A New York Blind Trust Agreement for private individuals, regardless of the type, typically includes provisions to prohibit the individual from having any communication or influence over the trust's assets, income, or investments. The designated trustee appointed by the individual assumes this responsibility. This agreement serves as a transparent and secure means to prevent conflicts of interest, protect privacy, and mitigate any potential ethical dilemmas that might arise for private individuals managing substantial assets.
