What characterizes a qualified blind trust?

A qualified blind trust is characterized by assets being managed by an independent trustee. In this arrangement, the person who creates the trust relinquishes control and knowledge of the trust's assets to an independent trustee, ensuring that the individual cannot make decisions regarding the trust assets and is unaware of how the assets are being managed. This structure is primarily used to avoid conflicts of interest, particularly for public officials or individuals in sensitive positions, allowing them to fulfill their duties without being influenced by personal financial interests.

Other options highlight scenarios that do not align with the defining features of a qualified blind trust. For instance, if assets are owned directly by the individual, they maintain control and knowledge, which contradicts the purpose of a blind trust. Similarly, complete transparency does not apply, as the essence of a blind trust is that the individual does not have insight into the management of the assets to prevent any potential conflicts. Lastly, the notion of requiring no professional oversight is not accurate; a qualified blind trust necessitates professional management by an independent trustee to ensure proper governance and compliance with relevant laws and regulations.