Distinction Between Civil Trust And Commercial Trust

Commercial trust is the behavior which trustees accepting the trust property for profit. Setting up a commercial trust should make in writing. From the establishment to termination commercial trust is subject to strict administrative supervision, also the trustee’s qualification and obligation are strictly limited. The civil trustee accepting trust property is not for profit, and setting up a civil trust can be made without writing. Civil trust subjects to judicial supervision, trustee’s qualification and obligation are lower than commercial trust. In our country trust is mainly used in business as civil trust has not yet developed. The existing trust law did not take the difference between civil trust and commercial trust into account in their establishment, supervision and trustee’s qualification and obligation. Theorists did not define the range of the civil trust and commercial trust. In practice, not just the business trust of trust companies and the securities investment funds can be recognized as commercial trust, the non-security floating revenue of commercial banks and the asset management of securities companies and insurance company all belong to commercial trust while at present they are subject to different rules.With these problems, we should improve the trust law and set up a unified rule for commercial trust. That is the value of distinguishing between civil trust and commercial trust...