Blind Agreement Definition

  • Posted on: September 12, 2021
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Conversely, a blind trust is designed in such a way that the beneficiaries of the trust and the trustor are not aware of the interests in the trust. Neither party has control or control over the management of investments, including the purchase or sale of certain securities. Blind trusts are also used when a wealthy person is elected to a political position where investments could lead to a conflict of interest. The Ethics in Government Act of 1978 requires those in political office to disclose all of their assets unless those assets are held in a blind trust. There are challenges and problems that can arise in a blind trust, as the truster who creates the trust at least knows the investment mix from the beginning. and cannot realistically forget this information when balancing future decisions. He signed a contract blindly, then went crazy In a typical trust, the Trustor or Initiator appoints an agent who acts as a trustee, which means that the trustee is responsible for complying with the trust agreement, for example. B the distribution of funds after the death of the trustor. The trust may contain various investments, including stocks, bonds and real estate. The agent and agent are often in contact with the other, while the beneficiary of the trust usually knows the trust and perhaps the assets inside the trust.

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