What are the benefits of having a blind trust fund?

What are the benefits of having a blind trust fund?

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Madison Smith
Assistant at Parklin Law

Blind trust funds are designed to help keep a person's personal wealth separate from their business interests. Their purpose is to keep the person and their family secure and to create more transparency with their investors. The idea is that if a person is set to inherit a lot of money, they may feel inclined to use that money for themselves rather than investing it into their business or other ventures. This can be dangerous because it can reduce the amount of capital available for loans, as well as cause the company doing business with them to lose faith in them.

In many cases, blind trusts are used to protect the spouse and children of an heir who wants to ensure his or her family's financial security. The trustee of the blind trust is in charge of managing all investments, but since he or she does not know what's actually in the trust, he or she cannot take advantage of his or her position by using that knowledge for personal benefit. This helps protect the beneficiaries from any legal issues that could arise if they were privy to information which could make it easier for them to bribe or blackmail a company or individual with whom they do business.

One advantage of this type of arrangement is that it allows you to maintain a level of separation between yourself and your money, making you less susceptible to the temptation to cheat by dipping into your funds for personal expenses. There's also a tax benefit to having a blind trust fund: since you're not technically allowed to touch or even see the money, it doesn't count as taxable income. In fact, if there are no withdrawals made from your trust fund during a given year, then there won't be any taxes owed on it at all; however, if there are any withdrawals made, then at least some amount will be taxable.

If you have any questions or in need a Trust Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

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Parklin Law
Estate Planning Attorney in West Jordan
https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Garland, UT, USA

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