Research On The Beneficiary Protection System Of Family Trusts In China

Since the reform and opening up,China's economy has developed rapidly,and more and more people have stepped into the ranks of high-net-worth individuals.A wealth-management product that is safe and effective to achieve intergenerational transmission of wealth has increasingly become an urgent need for high-net-worth individuals.According to the survey,more than a quarter of HNWIs also started to understand and contact family trusts.As one of the functions of trust origination,family trusts are rapidly growing up and developing in China.The curse of "three generations are rich" is about to be broken.A family trust is a high-net-worth person(a person with a high net worth)who transfers family assets to a trustee(natural person or trust institution)according to his personal terms and holds a trust beneficiary.The trustee,in accordance with the provisions of the trust agreement,In accordance with the will of the principal,the trust property is managed or disposed of for the benefit of the beneficiary or for a specific purpose,and the wealth is effectively managed and inherited.Strictly speaking,a family trust is not a product but a service.It is a legal structure.Family trust as an imported product is still a new thing in China.Compared with foreign countries,family trust has just started and there is much room for development.Family trust is a dual attribute of intended trust,private trust,trust trust,property and affairs management,and active trust and negative trust.Family trusts have the advantages of flexible wealth inheritance,wealth security isolation,tax avoidance,family governance and cultural heritage,and strict confidentiality of information.In China's trust law,many laws and regulations have made relevant provisions on the protection of the beneficiary's rights and interests.However,the "Trust Law" in China still has great deficiencies in the protection of the beneficiaries' rights and interests of family trusts.The concrete performance is in benefiting family trusts.There is a shortage of people's right to dismiss,trustee's duty of care,and trust supervision system.The uniqueness of a family trust still needs to be further improved in the relevant provisions of the Trust Law.The fundamental reason is due to the protection of beneficiary rights of family trusts in China.The relevant provisions of the law and the imperfections of the family trust legal system have made it difficult for the beneficiaries of the family trust to receive exact and reliable protection.Some mature countries in the development of trust law,such as the United Kingdom and the United States,the United States,and the United States and the civil law countries of Japan,are more advanced in terms of dismissal rights of trust beneficiaries,determination of the fiduciary duties of trust trustees,and legal regulations concerning trust supervision.And more operative.Here we compare the rules of the United Kingdom,the United States,and Japan in these three areas.In order to better protect the legitimate and legal interests of the beneficiaries of family trusts,we must draw on the combination of our trust practice and learn from the determination of the right of dismissal of trust beneficiaries in other countries,especially the United Kingdom,the United States and Japan,and the judgment of the trustee's duty of care.As well as the more advanced legal provisions in the three aspects of trust supervision,the right to relief of the beneficiaries of family trusts in China has been continuously improved and the steady and lasting development of the family trust in China has been escorted.