blind trusts

Meaning

1. 1nounpluralfinancelegal

   Arrangements in which someone's investments are handed to an independent manager who makes decisions without telling the owner, so that no conflict of interest arises.

   Grammar: Plural form of blind trust: officials set up blind trusts.

   Patterns

   • put something in blind trusts
   • blind trusts for someone

   Several ministers placed their shares in blind trusts when they took office.

   Blind trusts are meant to stop leaders from favoring companies they own.

   Critics argue that some blind trusts are not truly blind if the owner knows what is inside.

Word forms

Common combinations

set up blind trusts

The senators set up blind trusts before the vote.

place assets in blind trusts

Officials must place assets in blind trusts to avoid conflicts.

manager of blind trusts

The manager of blind trusts is not allowed to share details.

rules on blind trusts

New rules on blind trusts were published last year.

Synonyms and how they differ

trust funds

This is a broader term for money held by a trustee, whereas blind trusts add the secrecy that protects against conflicts of interest.

escrow accounts

These hold money temporarily until a deal is done, while blind trusts last as long as a person holds office.

managed portfolios

These may be run for the owner with full knowledge, which is exactly what blind trusts avoid.

Word family

trust noun

a legal arrangement in which someone looks after assets for another

trustee noun

a person who manages a trust

blind adjective

here, meaning the owner is not told the details

beneficiary noun

the person who gains from a trust

Commonly confused: blind trusts or trust fund?

Practice

Make it your own

Write a sentence using “blind trusts”, then check it and compare it with the examples above.

Explore more words