Which of the following best defines a Blind Trust?

• A. Trust for vision impaired beneficiaries
• B. Trust that beneficiaries are not informed of
• C. Trust intended to avoid conflicts of interest
• D. Trust for impoverishing the settlor to qualify for government benefits

Answer: (C)

The main concept is that a blind trust is set up to prevent conflicts of interest by removing the beneficiary’s control or knowledge over how assets are managed. In a blind trust, the trustee handles all investment decisions without input from the beneficiary, so the beneficiary cannot influence or benefit from individual investments. This separation helps ensure that personal gain doesn’t influence decisions made in official or public roles. That’s why the best definition is a trust intended to avoid conflicts of interest.

Other ideas miss the core purpose: it’s not about vision or blindness in any literal sense, and while beneficiaries may not know the specifics of every investment, the key point is the aim of preventing conflicts of interest. The option about impoverishing the settlor to qualify for government benefits is unrelated to why a blind trust is used.