Use blind trust information to provide for yourself and your loved onesA 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.
Find professional advice from blind trust specialists
Create blind trust documents with online tools and resourcesBlind 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.
Work with blind trust experts for appropriate blind trust managementDuring 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.
- 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.
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