The Legal Dilemma Of The Development Of Family Trust In China And Its Research

With the progress of the times and economic development,the family trust has gradually become the favored target of many high-net-worth individuals due to its unique wealth protection,management,and inheritance advantages.However,due to the existence of unsound registration systems,unclear ownership of property,restricted trustee qualifications,imperfect taxation system,and incomplete supervision mechanisms in China's current family trust legal norms,the“indigenization” process of the family trust industry in China has been affected.Serious obstacles,many domestic high net worth individuals have chosen to go far to the British Virgin Islands,the Cayman Islands,Bermuda and other places to establish offshore family trusts,resulting in a large loss of wealth.This article comprehensively uses the methods of literature research,empirical analysis,comparative analysis and other methods to analyze the main legal dilemmas faced by the development of the family trust industry in China.Based on the extraterritorial experience of relevant legislation,based on China's national conditions,targeted Some concrete cracking methods,such as perfecting the family trust registration system,clarifying ownership of the trust property,expanding the scope of the trustee,improving the family trust taxation system,and strengthening the supervision mechanism,are proposed in order to benefit the soundness and perfection of the family trust legal system in China.This article is divided into four parts:The first part is introduction.It mainly introduces the research background and significance of family trust,the content and methods of research,the status quote of domestic and foreign research,as well as innovations and deficiencies of this article,in order to play a role in attracting attention.The second part is an overview of the basic theory of family trusts.The concept and legal definition of the family trust was defined,and the legal relationship,legal characteristics,and functional advantages of the family trust parties were analyzed.The legal status of the family trust laws in China was also sorted out to provide sufficient theoretical support for the following discussion.The third part elaborates the main legal dilemma facing the current developmentof family trust in our country.One is that the current imperfect family trust registration system has caused many obstacles in the establishment of the family trust;the other is that the ownership of the trust property is unclear;the third is that the qualification requirements of the trustee of the family trust are too strict,to a certain extent The domestic development of the family trust industry;Fourth,the taxation of the family trust system leads to double taxation,which increases the cost of establishing the trust.Fifth,the supervision mechanism of the current family trust in China is incomplete,which induces a great legal risk.The fourth part includes chapters four and five.This part addresses the legal predicament of family trust development,and draws on relevant systems and theories outside the domain,and proposes specific solutions and improvements.First of all,the family trust registration system should be perfected.Secondly,ownership of trust property ownership should be clearly defined.Once again,the scope of family trust trusteeship should be expanded,and the requirements for becoming a trustee should be relaxed.At the same time,the family trust taxation system should be improved to fully demonstrate its advantages.Finally,the family trust supervision mechanism should be strengthened to avoid unnecessary legal risks.