Blind trust is a type of trust, trust management of assets. The beneficiary of a blind trust is prohibited from monitoring and managing the assets of the trust.
Blind trust means that the trustee has full control over the assets of the trust. The trustee follows the asset management rules set by the beneficiary.
What are the benefits of a blind trust?
First of all, a blind trust gives certain guarantees to its beneficiary. Due to the fact that the beneficiary does not control the assets of the company, he cannot be accused of a conflict of interest.
Such guarantees are especially interesting for government officials and other high-ranking officials in the state. Since these people are empowered, they have the ability to channel budget funds to the private sector.
Ownership of private sector assets by a government official can cause conflicts of interest. Especially if any public funds were directed to the companies in which this person invested.
Therefore, a blind trust would be the best solution to avoid such problems. If the beneficiary does not know anything about the assets of the trust, then claims of conflict of interest will be unfounded.
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