On The Legal Obstacles Facing Family Trust In China And Its Legislative Improvement

In this paper,based on important theories and the actual development of family trusts,the author mainly summarized and analyzed the actual challenges facing the legal system concerning family trusts,on which basis the author further proposed suggestions for improvement and optimization thereof.In merely 7 years'time,the family trust market in China has grown vigorously at a surprising speed;however,the late start of family trust business in China and the legal predicament facing its development have greatly hampered the development of family trust.Family trusts,different from ordinary trusts,were of complex structures and diversified purposes of establishment,and were generally under private ordering and of demanding requirements to the management of the trustee.The current legal system fell apparently short to satisfy the present situation of the family trust industry with rapid innovation and development.In this paper,through an investigation and analysis of outstanding practical experience abroad,the author proposed the following views on the improvement of laws concerning family trusts in China:firstly,clarify the ownership of trust properties;secondly,balance the relationship of rights and obligations between parties of the trust;thirdly,complete the registration of trust properties,including selection of the applicant for trust property disclosure,selection of the subject of acceptance of trust registration,reasonable definition of specific content of registration and measures guaranteeing privacy;fourthly,complete relevant tax system supporting trusts,avoid repeated tax collection and develop supporting preferential tax policies for charitable trusts,etc.