What is a blind trust
A blind trust is an asset protection structure that is set up to enable the complete transfer of ownership from the original owner of the assets (the settlor) to an administrator (the trustee). The purpose of this particular type of structure is to provide complete confidentiality of information from the beneficiaries and all outsiders, as the settlor’s name is not disclosed to the public. The trustee maintains complete responsibility over the administration of the trust in compliance with the settlor’s wishes.
DeltaQuest can assist you with setting up an asset protection structure that suits your personal and financial needs. To learn more about our trust services, please view our Offshore Trusts services page.
Blind trust features
A blind trust involves the transfer of ownership of assets from the settlor to the trustee, and are generally established when a settlor wishes to keep the beneficiaries unaware of the specific assets placed within the structure. It can be highly advantageous in avoiding any conflict of interest as a result of business assets – in particular between the beneficiary and the investments.
It is also established for the purpose of ultimate privacy against creditors. The settlor is empowered with full responsibility over the administration and management of the structure, and is unable to provide any information regarding the habitual operations of the trust to anybody, meaning that the structure is essentially ‘blind’ to outsiders. In this respect, this particular type of asset protection structure provides absolute levels of confidentiality from all external parties.
Another benefit of such a structure is that it can be revoked at any time, if this condition is included in your agreement during the formation stages.
A blind trust is a common form of asset protection adopted by many people of high-net-worth status across the globe. Although they are primarily established for privacy purposes, they also enable the settlor to benefit from low taxation rates available from the jurisdiction that the structure is established in. Additionally, they are considered an excellent form of portfolio diversification.
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