On The Independence Of The Trust Property

The trust property will be separated from settlor's property and form an independent property immediately after a trust arrangement goes into effect, such arrangement makes the existence of a trust that the property is to be held and managed by trustee on behalf of another or for some specific purpose other than his own benefit, the trustee's activities of managing trust property are restrict within the trust purpose and authorization scope. The beneficiary has the right of getting trust interests, but he has no right of holding and managing the regarding property and without legal tile of the property. Substantively, such a system planning is on request of the independence of trust property.Where there is no safeguard, there is no right. The independence of trust property is mainly on the sake of safeguarding the beneficiary, and it has also the function of protecting the third person from damages. In Common Law Legal System, because the trustee has the tile of trust property, the beneficiary claims relief in Equity. In Civil Law Legal System, as a result of without distinguish of Common Law and Equity, the trust property separates from regarding three parties according to statutes. Therefore, in the course of managing the trust property, the trustee must ensure it independent, although he has the tile of the property. The independence of trust property is more evidently embodied in the course of transference, in order to ensure the trust property independent, conciliate the conflicts between the third person and the beneficiary, a trust should clearly token the condition of regarding property, so as to the third person can make an reasonable judgment before the trade, so it is of importance to establish sound registration system of trust property.