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Blind Trust

 

This special type of trust has numerous meanings.

 

In the UK and other parts of the world, a blind trust operates like any other trust but the beneficiary of the trust has no knowledge of what assets are kept within the trust.

 

In Australia, a blind trust is the term given to a trust in which it is not apparent who are the real beneficiaries. That is, most (if not all) of the beneficiaries are not named in the trust deed. Alternatively, it can also refer to a situation where the beneficiaries are not able to inspect the trust instruments.

 

Blind trusts are commonly used in international tax planning where a trust which will derive significant income is established in a tax haven – an Australian resident taxpayer who is not specially named in the trust deed may be able to say he or she does not have any interest in the trust. They are also sometimes used by individuals to hide assets from their creditors, relatives or sponsors.

 

It is also common for politicians or high-ranking officials to have assets in a blind trust to avoid conflicts of interest.

 

If you would like more information on trust structures and want to learn more about the most appropriate type of trust or trusts for your situation, please click here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.