Research On Supervision Legal Issues Of Chinese Family Trust System

The Internal Revenue Service defines family trust as "A trust created to benefit persons who are related to one another by blood,affinity,or law.It can be established by a family member or members of family group.An instrument to pass on the assets to future generations".The family trust has already been exist in western world for hundreds of years,and it keep becoming mature.Since the beginning of the reform and opening in 1978,the family trust develops in China very fast.According to China Trustee Association,the family trust is "a efficacious way to heritage family wealth,High net worth individuals' first choices." In 2013,Ping An Trust Co made the first Chinese onshore family trust--"Ping An Cai Fu Hong Cheng Shi Jia",launched a new era for Chinese family trust.Although Chinese family trust is in a good development tendency,but the whole legal system is still poor.Because in China,trust product has always been considered as financial product,not a tool of herniating family wealth.The biggest problem of the family trust system is trustee supervision,and it hinder the development tendency of family trust.The article addresses the definition and history of family trust,to declare the definition.The article also addresses the functions of the family trust and some related theories to declare the reason and the meaning of the research.At last,the article discusses about the family trust supervision issue in different countries,and point out the specific trustee supervision issues in Chinese family trust system.The article also comes up with several solutions for the issues,try to contributes for thedevelopment of Chinese family trust.The article is made of six parts:The first part is some basic information and analysis,about definition,legal attributes,practice functions,history,development process of the family trust.This part is designed to declare the basic framework of the family trust system.The second part is about three theoretical ideals for the family trust,including Fiduciary duty of trustee,Information asymmetry and The state interventionism.The third part is the introduction to family trust supervision issues about four different countries and states.Including UK,US,Japan,Taiwan Province and HK.Based on that,the article summing up the related experience,to get some revelations for Chinese ashore family trust system.The forth part is about current situation of Chinese ashore family trust,including some related laws.Declare the judicial possibility of making a Chinese ashore family trust.The fifth part declares the trustee supervision issue of the Chinese family trust system.The sixth part comes up with seven solutions for the trustee supervision issue of the Chinese family trust system,try to contributes for the development of Chinese family trust.