On The Judicial Treatment Of The Trust Validation

Judicial decision on validity of trusts plays an essential role in limitation of the mechanism of trusts, and thus it draws a boundary for legal practice. It is necessary, therefore, to distinguish cases of trusts to find out judicial opinions on the issues that include: what kinds of trust that are officially recognized in practice; interpretation of the purpose of trust. By studying the above-mentioned issues, the nature of trust can be further clarified.By adopting the method of positive analysis and distinguishing cases, this thesis elaborates the laws and regulations of trusts upon which the judicial rules are rendered. Besides, some theoretical questions of trusts are also reviewed from the viewpoint of comparative law.The main content of this thesis is as follows:Introduction: A brief introduction about background, meaningfulness, creativity.Chapter I : On the definition of validity of trusts and necessity of observing its judicial treatment. The thesis develops the nature of trusts, and thereby the conclusion is made that it is a better choice to have an understanding of the nature of trusts by studying the definition of validity of trust instead of definition of trusts. The definition of validity of trust is also defined in this thesis, after that currently common misinterpretations of validity of trusts are summarized. The necessity of observing judicial treatment on validity of trusts is thereby stated.Chapter II: On judicial opinions based on case-analysis. Based on the past cases or precedents, judicial tendencies are rendered, which include: (1)strict interpretation of the purpose of trusts (2)policy factors have an influence on judicial opinions (3) validity of trust are recognized conservatively in general.Chapter III: On introspection of judicial opinions. This part of the thesis reviews the following three factors: negative effects, possible causes and other factors that need to be weighed. This thesis articulates the point that the current judicial opinions will impair both certainty and consistency of trust law, increase cost of subjects of trusts and hamper development of trusts industry in the long run. Even though many reasons contribute to this problem, the prominent ones are that on one hand, authorities lack of awareness of the importance of trusts; on the other hand, judges have insufficient skills in jurisprudence of trusts. Two factors must be taken into account when validity of trust is considered: 1. balance between self-government and state regulation 2. the random norm nature of the law of trusts.Conclusion: On summing up this thesis.