Font Size: a A A

The Development Of Family Trust In China: Rise, Dilemma, Response

Posted on:2016-07-13Degree:MasterType:Thesis
Country:ChinaCandidate:Q W HuoFull Text:PDF
GTID:2176330461463399Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
There had been a batch of the wealthy and the private enterprises after the reform and opening-up who are facing the trouble of wealth inheritance. The inheritance of wealth is a worldwide difficult problem. In the eyes of the ancients, most of the large families decline after the five dynasties. How to break the "curse", let the family sustainable? The trust system which generated and perfected in the Anglo-American law system provides a good idea to solve this worldwide problem. Many prominent families like Dupont family, Wal-mart’s family are still standing in the world, after experiencing the change of generations, fully benefit from the family trust. The separation of the beneficial right and the ownership of the family trust makes it has inherent advantages in family wealth inheritance, tax planning, corporate governance, protecting the rights of family members and evading existing institutional constraints.The wealthy design the family trust through the off shore trusts, before it is transplanted into China. In 2013, Ping An bank pioneered the products of family trust, then the other financial institutions detrusion the family trust products too. Analysising these family trust, although the operation modes and the specific contents have the very big difference, they are all fund trust. This makes much limitation for the wealthy who has diversified property types to use the family trust. Investigating its reasons, there are many factors that the trust property ownership is fuzzy; the trust industry did not establish the standard obligation of cautious for trustee; the trust registration system is missing; the trust tax system is in chaos. This paper argues that we should conform to the trend of expanding the trustee rights around the world and give the ownership of the trust property to the trustee. We should make different criteria for different types of trust to determine whether a trustee perform the duty of cautious, in order to balance the interests of the parties concerned within the trust. Our country should establish the trust registration system as soon as possible. Trust tax in our country should insist on the combining of trust conduit theory and entity theory, in order to avoid double taxation in the trust tax revenue which is an unreasonable phenomenon.
Keywords/Search Tags:The family trust, the ownership of trust property, the trust registration, the trust tax
PDF Full Text Request
Related items