| With the rapid development of China’s market economy and the increasing number of affluent class in China,the first generation entrepreneurs are faced with retirement.They are desperate for a way to ensure the wealth inheritance of their own families.In short,the wealth management demands of high-net-worth individuals are increasing day by day.Building a strong wealth management industry has become an important part of the national financial industry,and family trusts are increasingly becoming the focus of market attention.Family trusts have developed into relatively mature trust products in foreign countries.However,introduction and adoption of family trust in our nation is still in trial.Thus,this thesis mainly studies the different methods of wealth inheritance under Chinese law.By making a comparative analysis of the advantages and disadvantages of those methods,this thesis purpose to find if there is any necessity to prompt the development of family trust in China or it may be better to seek a new development on the basis of existing wealth inheritance pattern.In the first chapter,the author first analyzes the concept and development of China’s wealth inheritance from the perspective of China’s cultural background and social traditions.At the same time,the author briefly analyzes the risks in the process of China’s wealth inheritance in terms of marital change,taxation issues,litigation risk,and debt collateral.In this context,the author outlines four legal approaches to the inheritance of wealth in China and their approximate scope of application,including testament,gifts,insurance and family trusts.In the second chapter,this paper analyzes the present situation of these four methods of wealth inheritance.First of all,we briefly analyzed the four ways of inheritance from legislation.Secondly,based on the investigation of literature,this article introduces the concepts,legal characteristics and core functions of these wealth inheritance methods,and then analyzes the practicalities and limitations of the existing wealth inheritance methods in China.Thirdly,this article compares these four methods through spreadsheet analysis,including the comparison of functions and legal risks,then draws a conclusion: Insurance and family trusts can be set as a focus direction of the wealth management mode in our country because of their unique charm.In the third chapter,the author gives the corresponding optimization suggestions on the development of insurance and family trust from legislative and practical perspectives.Although insurance industry has been relatively complete in China,the author has given several suggestions on its application,including promoting the insurance industry’s ability to innovate,strengthening the design of policy terms,and raising the level of industry supervision.In terms of family trusts,the Family Wealth Forum in recent years has continuously publicized its unique function wealth transference,estate planning,tax planning,education for future generation,and family governance in the inheritance of family wealth.It is considered to be an alternative method of wealth inheritance in China.However,we may ignore various issues that will arise during the process of transplantation of family trust,in which the author has conducted in-depth excavation and research.Also,the author gives some suggestions,including strengthening supervision from administrative and judicial prospect,and gradually promoting the diversification of family trust products from the optimization of a single capital family trust.Finally,the author believes that as an effective asset transfer method and a mature institutional design,the family trust in China will become the blue ocean in the next area of wealth inheritance.At the same time,the author believes that the existing methods of wealth inheritance should be optimized so that they can be combined with family trust to play a better corresponding role. |
