Analysis On The Legal Issues Of Beneficiary Trust

As an emerging form of business trust, the beneficiary trust has to be used morewidely in practice because of circumventing regulations and the rapid financingcharacteristics. Meanwhile, bring a huge risk of this form of trust is also suffering fromtrade dispute. Due to a large amount of financing, inadequate legal regulation, once thetrust beneficiary disputes, it is difficult to obtain full protection of justice, sometimes evenwithout legal recognition. On the one hand is to circumvent the spirit of the laws andregulations arising from a trust, to the legal system of China’s financial markets hasbrought enormous challenges. On the other hand is a strong demand in the market forfinancing, the Trust has as yet not fully play a role in our country.The legal status of thebeneficiary of the Trust, to some extent can be said to be a microcosm of China’s trustindustry is currently facing legal situation. How effective business trust and impartial legalnorms, not only for the development of the trust industry has a crucial significance, butalso an important issue to improve our legal system.In this context, Anxin Trust v. Kunshan case in2012is pure high-lighted a typicalcase of beneficiary trust in business landmines. Which relates to the beneficiary whetherlegally recognized trust, trust loan contract is valid and the issue of fiduciary duty andother trustees, the trust industry is currently building the rule of law in our country need toexplore and solve problems. Therefore, this paper will be on the basis of facts and legalissues sort of judgment on the case against the focus of controversy, in order for the abovethree issues were discussed. Drawing on analysis of domestic and international law, whilethe case to the court opinion and trust principles, this paper considers the trust beneficiarytrust as a special property with its own legal defects in the use and promotion should bestrictly controlled. The legal effect of a series of actions related to the trust and thebeneficiary shall be adjusted by the principle of fairness, proper maintenance of the basicrights of the trust of the parties. At the same time, strengthening the rights and obligationsof the parties to improve the trust provisions, is also the step essential to promote thehealthy development of the trust industry.