The Legal Predicament Of The Family Trust In Practice And Its Development In China

High net worth individuals are showing strong demand for inheritance of wealth,and in current trust industry is in transition to the direction of transaction management.Now only family trust could address these two problems that trust industry is facing with.Family trust is becoming an important business which trust company is focusing on.Different from commercial trust,family trust has characteristics of benefiting others,chronic and privacy.Now trust system in China is not mature,many HNWIs choose to set up family trust overseas,through which they could make sure that their properties could be passed down to descendants effectively.Compared with foreign countries,family trust in China cannot ensure independence of trust property,confidentiality obligation of trustees is rough,tax system of trust is unreasonable,these are all legal barriers that family trust is facing with currently.Trust products consist mainly of funding trusts which trust properties do not include real estates and corporate shares.Development of trust industry is not only limited in the field of finance,it must be broken down in the aspect of transaction management.Studying from case of family trust overseas,family assets mainly include real estates and company shares.But there are many legal problems about real estates and company shares in current legal system,and they are restricting development of family trust.Thus,we must find legal problems of domestic family trust comprehensively,and propose solution.Firstly,the essay introduces two successful cases of family trust, Mei Yanfang and Ya Jule,then assume if such family trust is set up in China,what problems it will be faced with.After introducing legal issues,the essay analyses basic trust characteristics,advantages and practical functions of family trust.Secondly,the essay researches on developing market status of family trust,and clear imperatives of developing family trust.At last,the essay analyze legal issues and propose solutions.Introduction Family trust overseas applied in the territory of China This chapter begins by selecting two cases of family trust,Mei Yanfang Trust and Ya Jule Trust,then assume if they are set up in China,what legal barriers they will meet with.The chapter analyse Shen Dianxia Trust mainly from the angle of real estates,Ya Jule mainly from the angle of corporate shares.Chapter I Institutional advantage and practical function of family trust This chapter focuses on studying theories of family trust.Firstly the chapter compare it with commercial trust,aiming to define the concept of family trust.Then the chapter distinguish institutional advantages and practical function of family trust,and analyse them.Chapter II Market status of domestic family trust and existing legal issues This chapter focuses on studying practical condition of family trust products.,firstly analyse developing patterns of family trust.Then from the angle of market,involving both HNWIs increasing and trust transition,the chapter indicates family trust has the need for further development.At last,this chapter focuses on raising existing legal issues.Chapter III Legislative proposals of perfecting the system of family trust This chapter puts forward opinions for developing family trust from three angles.Firstly it introduces by basic legal issues,such as confidentiality obligations of trustees and tax systems of trust.Secondly it introduces by legal issues of real estates and corporate shares,including issues of coordinating with the restriction order.Lastly it introduces by issues such as validity periods of family trust.