Research On Legal Issues Of Family Trust In China

Due to the significant enhancement of private wealth in China in recent years, Family Trust as a legal tool to guarantee the effective transmission of family wealth, is getting more attention of High Net-Worth Group. Trust originated from Britain. As an exotic into China, it is facing the combination with our legal tradition and legal system, That is, the process of localization of the family trust. The trust law in our country was issued and implemented in 2001,it became the basis of norm about the development of china trust industry, but the development of the Family Trust still faces many legal problems, it needs us rethink and give a proposed solution. There are four parts in my article, The first part describes the general legal family trust basis, including the concept of the family trust, the legal relationship between the family trust and the function of the family trust.in this part, the purpose of this part is to provide theoretical support of the following. The second part introduces the overseas family trust legal norms, the aim is to make the analysis of overseas family trust legal norms and the current situation of the development. There are three aspects in this part, firstly, the ownership of trust property; secondly, the system of trust publication; lastly, the rights of the trustee. It provide a reference of foreign regulations to solve the legal problems of family trust in our country, through the contrast of Common law and Civil law provisions on the above three aspects.The third part describes the status of development of family trust in china, it is in its infancy, it does not play its role fully as a unique property management tool, it makes that development of family trust has encountered a bottleneck in china.It also introduces the legal problems hindering the development of family trust in china, By the comparison of overseas trust legal norms, the legal problems of China’s family trust is mainly four aspects. Firstly, The ownership of trust property is vague; Secondly, The publication of trust is not reasonable; Thirdly The family trust can not accommodate a wide variety of property types. Lastly, The rights and obligations of trustee are not balanced.Through the analysis of the legal problems of the family trust in the process of development, and our aims are to find solutions, by which it can promote the development of the family trust. The last part of the writing, The author emphasized to put forward some advice to perfect the system according to the family trust problems. Through defining family trust property ownership, it will provide the premise of full exercise of rights of the trustee and the management of trust property;Completing the trust publicity system, By the establishment of trust enrollment confrontation theory, It will protect the client’s privacy of the family trust and the third party transaction security; Expanding the variety of property types, the family trust ensures the realization of functions; Balancing the rights and obligations of the trustee,There is a frenzy of activity on the financial markets today.It request us to give the trustee for broader investment right and give full play to the function of Family trustee as a professional financial institutions to value the trust property. Our aims are to achieve the function of family trust.