Study On The Law Application Of Transnational Trust

Trace the origin of the Trust system, we can find that in medieval England Equity, "The USE" is an early prototype of the Trust. There are many ways to establish Trust, and Trust can gather a lot of wealth, Trust system with a strong superiority rapid dissemination in common law countries, become an important financial tool. Impact of the global economic wave, the range of countries economic exchanges growing, civil law countries have gradually introduced the trust system, such as Japan, Korea, China. Trust system in common law countries has a mature system design, it had developed for a long time, and the Trust system in civil law countries is not so perfect. At the same time, due to the differences of legal traditions, political, economic, cultural, civil law countries had to do some localization provisions based on specific national conditions when introducing the trust system. All of this leads to many differences on Trust system between two legal systems, the contradictories are not only manifested in specific legal provisions, but also implied between the contradictories of trust theory. When the foreign-related Trust has conflict of laws, and there is no uniform application of law rules to Trusts,this increased the uncertainty of trust validity which brings difficulties to the applicable law of court and thus inimical to safeguard the trust parties’ rights and interests. Through the jointed efforts of the International Law Scholars, the Convention on the Law Applicable to Trusts and on Their Recognition was passed by the Hague Conference on Private International Law in 1984 which provides some basic rules for the conflict of foreign-related trust law and further promotes the trust system’s development. This paper will discuss the law conflict and law application of foreign-related trust through the following four parts, through the comparison of the introduction of law application concerning foreign-related trust between two law countries and combining the relative rules in “Hague Trust”, this paper will offer some proposals on perfecting the legislation of China on the foreign-related trust law application system.The first part introduces the basic concepts, characteristics and cause and exhibition of foreign-related trust law Conflicts. For the derivation of trust, the scholars hold four different opinions and the most commonly accepted one is that trust steps from the Use of British. There exists some differences of the definition of trust between two Law countries which mostly lies in the establishment of trust and the transfer of trust property. The deeper reason is the different traditions between common law countries and civil law legal countries As a specific law systems, trust property become independent property as soon as the trust relationship forms, the proprietary rights and beneficial power of trust property separates and the management of trust possesses continuity. With the increment of the international economic exchange, the trust system is beyond the scope of one country which possesses some foreign-related factor and owing to the differences of the specific situation of different countries, the trust system also shows some difference and thus leads to the conflicts of foreign-related trust legal application problem which mainly shows in the establishment of trust, The rights and obligations of the parties to a trust, The ownership of the trust property and the management of trust.The second part investigate two law countries and the rules about foreign-related trust legal application problem in The Convention on the Law Applicable to Trusts and on Their Recognition further makes some compares, analyses and summary.The third part summarizes and concludes the common foreign-related trust lay application principles. This principles are The Principle of Autonomy, The doctrine of the most significant relationship, Segmentation principle, The reservation of public order and peremptory norm.The four part first introduces the legislation situation of foreign-related trust of our country and then mainly analysis the Article 17 of The Law of the Application of Law for Foreign-related Civil Relations of the People’s Republic of China, and make some suggestions on the perfection of the foreign-related trust law application system and finally analysis the feasibility of China’s accession to the Convention.