Brief Analysis Of Building The Testamentary Trust System In China

A testamentary trust is one created by a valid will,which is a combination of wills and trusts.With the policy of reforming and opening,people's fortunes and understanding of the rule of law are gradually improved.Furthermore,people have increased their attention to the concept of 'financial management' and become more and more understanding of the rational allocation of property.As one of civil trust,testamentary trust is a form of rational management of the disposition of the property.In order to meet the needs of people,it becomes a new model which derived from the traditional trust system.Besides,influenced by the concept of western advanced legal system,China is also in the process of gradually improving the testamentary trust and to make it play an important role in the society.The first part of this paper introduces the characteristics and functions of the testamentary trust.It assists people to handle cases like heritage management,taking care of orphans,reasonable tax avoidance,avoiding property disputes dispute,and other requirements.Specially in the common law countries,the testamentary trust has been widely used.The second part of this paper analyzes the value of testamentary trust system.As a vital tool of wealth inheritance,testamentary trust has its unique role,which can make up for the problem of inheritance in our country efficiently.Moreover,testamentary trust has a strong instrumental value,that can achieve predecessor's wishes and allocate property reasonably.The third part of this paper,aiming at the current situation and problems of the domestic and foreign testamentary trust.The trust system originated in land usufruct system in the sixteenth century,to avoid the eldest son inheritance system to realize the free disposition of land.Nowadays,the United Kingdom and the United States are able to fully realize the wishes of predecessor,to protect the property from the minor children to inherit,and to effectively manage and invest in the business of the predecessor.With the policy of reforming and opening up,Chinese economy developed rapidly within the last thirty years.A large number of enterprises built up quickly.When the first generation gradually into an old age,how to inherit the enterprise well becomes a challenge that they will face.Therefore,our country urgently needs to establish a complete set of testamentary trust system which conforms to our national condition.In order to make most of the good enterprises in our country can be passed down well,China should draw lessons from the excellent system of the British and American countries.The fourth part of this paper is the future development direction of China's testamentary trust system and the way of thinking:mainly to improve the legal principles of the testamentary trust system and other aspects of the system.The fifth part is the conclusion of this paper,which briefly summarizes all the arguments in this article.