A blind trust is used to conceal financial transactions, most often by politicians or corporate executives who want to avoid any suspicion of using their position for financial benefit. A blind trust gives a designated trustee sole authority to manage trust assets, without any knowledge of the creator or grantor of the trust. A blind trust usually is temporary, set up for a specific period.
The grantor of a blind trust usually reserves the right to terminate it at any time. The trust agreement should specify termination procedures if the trust does not specify a time period. A politician who creates a blind trust for his assets when he is elected usually will terminate it once he leaves office and any conflict of interest questions are eliminated.
Follow Trust Steps
Follow the trust directions, usually by notifying the trustee of plans to terminate the blind trust. This should be done in a letter or with a formal revocation of trust document. Consult a lawyer if the trust agreement does not spell out specific steps. Have any termination letter or document notarized for authenticity.
Notify any other parties to the blind trust. Usually the grantor is also the beneficiary, but in some cases a blind trust may have minor children, charities or others as beneficiaries. Give beneficiaries a copy of the termination notice, with a copy of the trust agreement.
Have the trustee place all the assets back in the name of the grantor. Usually when a trust is created, assets such as bank accounts will be listed in the name of the trust, with the trustee as the authority, such as This Person Trust, I.M. trustee. When the trust is terminated, all assets have to be put back into the name of the original owner.
Bob Haring has been a news writer and editor for more than 50 years, mostly with the Associated Press and then as executive editor of the Tulsa, Okla. "World." Since retiring he has written freelance stories and a weekly computer security column. Haring holds a Bachelor of Journalism from the University of Missouri.