The Research Of Charitable Trust Legal System Of China

Charitable Trust is one of important modes for the development of public welfare.Although China has provisions of charitable trust system in the Trust Act of2001, inpractice the charitable trust has not been developed. Most of the public believe thatthe existing foundations can fulfill well the development of public welfare, so there isno need to introduce the charitable trust system which is in conflict with the sourcesof law in China. In recent years, with the continuous development of the publicwelfare, the Foundations are revealed more and more problems, the Foundation fundsunaccounted lead to a sharp decline of trust in the Foundation in public, we need tointroduce the charitable trust system which has a long history and unique values tocompensate for the deficiencies of the Foundation.Charitable Trust compares with theFoundation, we can find that charitable Trust has irreplaceable advantages: It costsless to set up charitable trust, the supervision and management of charitable trust iseven higher efficient, the trust property is more conducive to increasing the value andmore safety, charitable trust is more conducive to the protection of interests of thebeneficiaries. Currently, the main reason for the slow development of our charitabletrust is that our public is lack of awareness of the charitable trust system. Charitabletrust in common law countries such as U.S. and the UK has a long history and beingperfected related systems; Charitable trust in the civil law countries such as Japan isalso developing maturely. To develop our charitable trust, we should draw theadvanced experience in those countries. We should pay more attention to thelegislation of Charitable trust, improve the legal system of Charitable trust, clear thecriteria of public interest, reduce the barriers to the establishment of the CharitableTrust, simplify the programs of the establishment of the Charitable Trust, unify thesupervision agencies, define the qualification of the t rust supervisor, refine terms ofreference of the trust supervisor, clear preferential taxes, establish the regulatoryregime of the tax benefits of charitable trust. Apply those policies and measures toimprove the system of our public trust, and promote the development of China’spublic welfare.