Blind Trust Attorney

Living trusts and estate plans.

Blind trust attorney.

To create a blind trust start by drafting a trust instrument sometimes also called a trust deed according to your state s laws. The biggest pitfall in any litigation or arbitration brought or defended by a family living trust is the failure of the pleadings to properly identify the trustees of the trust as parties to the proceeding. Blind trusts are generally used when a trust creator sometimes called a settlor trustor grantor or donor wishes for the beneficiary to be unaware of the specific assets in the trust such as to avoid conflict of interest between the beneficiary and the investments. A blind trust is a living trust that is completely controlled by the trustee.

Regardless it s advised that you seek the counsel of a trusts attorney if you need to set up a blind trust. If you hire an attorney to create your living trust she will likely create the trust as part of a comprehensive estate plan. Draft a trust agreement with an attorney to outline the parameters of the trust including if the trust is revocable or irrevocable and how the assets shall be distributed when the blind trust expires sign and notarize the agreement and if necessary report the trust to the state transfer assets to the trust. Additionally in a blind trust set up the trustees and those who hold power of attorney will be given all control over the trust.

Establishing a blind trust basically involves drawing up a document that the grantor signs to give full power of attorney over the trust assets to an independent third party trustee in contrast. On december 28 2011 the california court of appeal simply and unequivocally ruled that the property party to a legal proceeding is not a. In the typical blind trust the settlor is also the beneficiary. Most people will never encounter a blind trust as they re primarily used by high profile corporate executives and elected officials with substantial financial assets.

The trust instrument lays out all the trust s terms including naming the trustee establishing a payment schedule and naming beneficiaries to receive any remaining trust assets after you pass away. Contact a trusts attorney for more information about blind trusts. The settlor that is the person whose assets fund the trust and the beneficiaries have no control over or knowledge of the status of the assets held in a blind trust. Because the trustee has complete authority over asset management it s a good idea to name an investment firm trust company or an attorney to act as trustee.

In comparison attorney s fees for drafting a will are much lower generally 200 to 400 for an individual and 300 to 500 for a couple. These trusts are designed to prevent conflicts of interest and maintain privacy. In a blind trust the trustees fiduciaries or those who have been given power of attorney have full discretion over the assets. A blind trust is a type of trust that is arranged in a way so that its beneficiaries will have no knowledge about the property or assets contained in the trust.