Legal Issues Of Family Trust In China

Since the reform and opening up of China,along with the increasingly open market environment,the Chinese financial policy is also in line with serial reforms of developed countries,especially with the promulgation of "Trust Law of the People's Republic of China"in 2001,the Chinese society brought in the British Trust system originated in 13th Century,which marks the official departure of Chinese trust industry.Therefore till now,there is no satisfied conclusion on the nature of rights and obligations when it comes to the trust property.As a type of business in the trust industry,the family trust is also facing various legal problems whichneed to be solved,such as the registration of family trust property,the reform of tax system,the privacy protection of family trust and so on.Based on the above background,this paper starts with the perspective of the trust industry's characteristics,combined with the purpose of family trust which is mainly to protect and inherit the family's wealth,explores the solution for ubiquitous problems in practice,proposes on one hand that the country should improve the legislation of the trust industry,the key point of which is to solve the problem of registration of trust property,to unify regulations of the obligee,obligor,registration department,and the registration procedure,and to set up the national trust registration center when it is necessary.On the other hand,to establish the family governance mode in the trust plan,draw lessons from the trust supervisor system of the charitable trust system,introduce the family supervisor mechanism to improve the supervision of the family trust,and to realize the purpose of protecting and inheriting the wealth of family trust.It is true that based on the legal relationship,the family trust sets up a special legal structure among the trustor,the trustee,beneficiary and the trust property.This legal structure forms relationships of property rights,creditor's rights,and even personal relationship in the family trust,so being a new trust business,the family trust needs to fully respect the basic principle of "party autonomy",without violating the premise of legal provisions,and properly solve problems in practice,in order to meet the needs of the constantly developing and changing social economy and culture.