Research On The Testamentary Trust System In China

With the rapid development of Chinese economy, the deepening of the aging society, and the growing of the wealth of the people in the hands, more and more rich people are facing a major issue of wealth inheritance. In the case of more wealth, people no longer just need to transfer his property to their loved ones, and they want to let his property can continue exist and increase the value after his death. Pure testamentary succession can't completely satisfy the inheritance. Under this background, the research that how to use the Testamentary trust to pass personal wealth become very necessary and urgent.Testamentary trust refers to that the client transfers the property to the trustee for the trust of the trustee. The biggest characteristic of testamentary trust is that it set up by means of the will, and trust property is all or part of the property left behind by the testator. After the establishment of the testamentary trust, the trustee manages property in its own name. Property shall be used for designated purposes in accordance with the provisions of the will and the beneficiary enjoys related benefits. The trust property is independent and differs from the inherent property of the client and the trustee. With the separation of ownership and beneficial rights, ownership is owned by the trustee who has the right to manage and dispose the property. Beneficiary has the beneficial right. The trust will not invalid because of the change of the trustee and has significant continuity. The testamentary trust is different from the bequest and execution of testament and has unique advantages.Existing testamentary trust system has a series of legal issues, such as the ownership of the trust property is unknown, the existing effective trust registration system, and trust duration is not clear. This article believes that the restrictions on the qualifications of the trustee should be relaxed, and we should adopt registration antagonism. The trustee has the ownership of trust property. The term of the Testamentary trust shall be the beneficiary's lifetime and the 21 years after his death.