A blind trust is a type of trust used as a tool of modern estate management. Trusts have been around since the early 19th century even though at that time their most common use was for the short term for vulnerable family members like women, minors and those with limited mental capacity.

A blind trust is popular due to the change in the assets and investments of the average citizen. Many people have complex annuities, tax qualified plans and business interests. Social factors of increased wealth and stepfamilies also increase the need for more sophisticated planning and management.

A blind trust is established and in effect during a person’s lifetime. A blind trust is unique in that the executors have complete discretion over the assets in the trust and the beneficiaries have no knowledge of what the trust contains. A blind trust is common when the trustor wants to keep the beneficiaries unaware of specific assets contained in the trust to avoid problems between beneficiaries or to prevent conflict of interest issues. Prepare a blind trust to:

1. Retain discretion by the executors over all the assets held in the blind trust.

2. Keep the beneficiaries unaware of the assets held in the trust.

3. Minimize problems between beneficiaries of the blind trust or conflict of interest between the beneficiary and investments in the trust.

Action Steps
The best contacts and resources to help you get it done

Find professional advice from blind trust specialists

Blind trusts are a good tool for people wishing to leave assets to beneficiaries without their prior knowledge. Finding the right attorney that specializes in blind trusts makes putting the right assets in a blind trust easy.

I recommend: Use Findlaw.com by typing in the words "Trust and Estate" in the legal issue field and then your state to find trust experts near you. Try Martindale.com by clicking on "Trusts and Estates" for areas of practice and the state in which you live.

Create blind trust documents with online tools and resources

Blind trusts are relatively easy to produce as a part of a living trust or other type of trust with the right online tools and forms. What makes the trust blind is that the beneficiaries have no knowledge of the trust. Therefore, many types of trusts can be blind depending on the trust language. Do it yourself trusts are also a great resource when time is an issue and a trip to the attorney's office isn't possible.

I recommend: You can make your own living trust, and include a blind trust, with forms from Nolo. Click on your state to create a blind trust using living trust forms from U.S. Legal Forms.

Work with blind trust experts for appropriate blind trust management

During life's most difficult moments, it's nice to have the right blind trust information from a trust expert. Use trusted experts in blind trust work for the most comprehensive plans available.

I recommend: Greenberg Traurig and DLA Piper are worldwide organizations specializing in wealth preservation and estate planning.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Find blind trust information and blind trust advice through your local senior center. Also, check with your state chapter of the American Bar Association for a blind trust expert.
• •  Make sure your blind trust contains only those assets you want to keep hidden from the beneficiary. Use a blind trust in conjunction with other trust and estate planning documents for the most personalized plan.