Government Officials and Blind Trusts
Many politicians and other government officials set up blind trusts to avoid conflicts of interest. In fact, the United States Senate has specific rules meant to prevent politicians from abusing their authority for self-gain. For example, a politician who is passing legislation or writing policy may be inclined to favor programs which benefit their investment assets.
A blind trust lets people who may have conflicts of interest establish a legacy without having to worry about how their official duties may affect their investment portfolios and asset holdings.
Setting up a Blind Trust
While a blind trust is often part of a comprehensive estate plan, it can also be a stand-alone arrangement. A blind trust should be managed by an independent, third-party trustee granted the power of attorney to act as your agent. The third-party trustee is often someone who has experience managing assets and trusts such as an estate planning attorney.
However, blind trusts are not easy to set up. A blind trust has to meet very specific legal criteria, and they can be expensive to establish. You should always seek professional guidance when investing in a blind trust.
|
Related links: |
