The Research On Legal System Of Supervision On Charitable Trust In China

Trust originated in medieval Britain’s benefits system, known by legalscholar Mayrand as the greatest achievement made by the United Kingdomin the field of law. Charitable Trust is a trust established with thepurpose of public welfare and commissioned others in order to a notspecified public benefit to manage and use of property in the publicinterest purposes. Charitable trust system has a history of over400yearssince there, compared with the general trust, with the establishment oflower-cost, flexibility and conduciveness to increasing the value of theproperty and so on. Therefore it has a wide range of application areasin the Western developed countries and played an extremely important rolein the health care, relief, education and other social welfare fields.The other hand, precisely because of the unique design of the system ofthe charitable trust,in their legal relationships,the trustor and thebeneficiary’s power was greatly weakened and, instead, a trustee’sstatus has a great degree of expansion.Thus it is very necessary tostrengthen and improve the system of supervision on charitabletrust.Through inspecting the system of supervision on charitable trustin countries outside,it can be seen due to the different national culturaland legal traditions, common law countries (the United States, the UnitedKingdom as representatives) and civil law countries (Japan, Taiwan asrepresentatives) have their own characteristics on supervision ofcharitable trust.All of these different models of development give ussome enlightenments on our construction of supervision system.Throughoutthe development status of legal supervision system in China,we only have some general rules on supervision of charitable trust in “TrustLaw”passed in2001and other relevant laws and regulations, all of theserules are not comprehensive and specific, the lack of maneuverability.In practice, there are few charitable trust projects in the real normativesense,and the number, size, and the effect of these projects are verylimited,so the system of charitable trust in China is still in its infancy.It should be said that all of these have the relationship with theshortcomings exposed of supervision system on charitable trust in China.The shortcomings concentrated perform in the following respects: theregulatory authorities of charitable trust are not uniform, the standardsof establishment are higher, the supervisors’right of charitable trustare not clear, the lack of tax incentives system and self-regulatorymechanism and so on. Therefore, we should improve the regulatory systemof charitable trust as soon as possible.Internally, the supervisor’s roleshould be clear and the self-regulatory mechanism of charitable trustshould be established;Externally, we need to further improve theregulatory agencies and tax regulatory mechanism of charitable trust.Using a two-pronged approach in order to promoting our charitable trustand public welfare undertakings develop by leaps and bounds.