Testamentary Trust System

Testamentary Trust is held in the will of testator who wishes to dispose of his property to pass outright to the trustee who manages and disposes of the property on the behalf of himself or the intended beneficiary in the will of testator. S 13 of Trust Law of China only regulates that, 'setting up the testamentary trust should comply with the provision of Inheritance Law. The beneficiary can assign a new trustee in the case of the refusing or incapability of the appointed trustee in the will; the guardian is able to assign a new trustee instead under the law in the event that the beneficiary is non-capacity and limited-capacity for civil conduct. Otherwise, comply with other statutory regulations.' There is no related definition and establishment of testamentary trust in the regulation above.The research on testamentary trust system in the field of trust is not relatively common, but many scholars in Japan start to pay attention to it. This dissertation emphasizes on using the advanced and successful foreign experience for reference, on the basis of studying the relative Japanese theoretical research, starts from the structure of trust system, analyzes the new requirement to the parties, property and purpose of trust by the characteristic of testamentary trust system and compares the difference with the common contract trust. Testamentary trust system has not been introduced in China, however, it is very necessary and feasible as the perfection of legal system and increasing of individual property.The innovation in this essay is where the systematic research is carried on the structure of testamentary trust system and formed into a complete legal frame. Besides that, it puts forward some legislative suggestion to Trust Law of China, such as adding administrant of trust property and endowing the withdraw right to beneficiary on the condition of default of trustee, etc. it also brings forward and analyzes the related liability of the beneficiary besides the beneficial right.