Research On The Principle Of Anti-sustainability Under The Continuous Beneficiary Trust

Trust,as an effective financial instrument,could play a big role in preserving settlor's intent,saving taxes legitimately,and achieving the goal of protecting family wealth,through successive beneficiaries.Successive beneficiaries trust is a kind of trust,which contains two or more than two beneficiaries,who could enjoy their beneficiary interest in a order set by the settlor.After the accumulation of wealth of Chinese during the past 30 years,the first generation of the wealthy have come to an age to pass the family assets to their successors,which might be biggest move of the human assets in the world.However,setting successive beneficiaries does mean that a perpetual trust is acceptable.The theories against perpetual trusts include dead hand control theory,balance between generations,and other economic reasons like providing more risk capital to boost economy.Doing a summary of legislation experience of Common Law and Japan,we could directly find the main elements of the rule and learn from the advanced techniques applied by them.It is time to make our own rule against perpetuities.