Research On Family Trust Business Of Trust Company

Over the past 40 years of reform and opening up,the rapid development of China's economy has created a large number of people with high net worth and ultra-high net worth.After years of hard work,they have accumulated a large amount of family wealth.According to the Hurun Wealth Report of 2018 issued by Hurun Research Institute,by the end of 2017,the number of"high net worth households"with tens of millions of investable assets in mainland China had reached 820,000.The number of"ultra-high net worth households"with investable assets of 100 million yuan has reached 65,000.With the increasing number of high net worth people in China,the demand for family wealth management is expanding.In these high net worth people,business owners are the majority.They are not only facing the problem of family wealth management and inheritance,but also the problem of family business inheritance.In this regard,family trust's unique advantages leads to great market potential of family trust business.Breaking rigidity,reducing leverage and removing channels are requirements for trust companies to carry out trust business.In the new era of asset management,trust companies should return to the origin of trust,optimize their business structure,improve their proactive management ability,and carry out business transformation to meet regulatory requirements.Family trust business not only meets the requirements of the new regulations on management,but also reflects the essence of trust.It is one of the businesses that trust companies should focus on.Therefore,this paper studies this business,hoping to play a certain role in helping trust companies to carry out family trust business.This paper first introduces the definition of family trust and the basic elements of family trust,then expounds the three main functions of family trust in our country at present:asset isolation protectio n,family wealth inheritance,family assets management,and then briefly expounds the theory related to family trust business.Secondly,it introduces the development of family trust at home and abroad from three aspects:business proportion,main types and major operating institutions.Concluding that family trust business in China is still in its infancy,facing the problems of low social awareness,low business proportion,single product type and insufficient depth of development.In addition,the trust company has the exclusive license advantage in China,and is the main institution to carry out family trust business.Thirdly,using PEST analysis method to analyses the macro-environment of family trust business in China,and then uses comparative analysis method to analyze the competitiveness of trust companies,commercial banks,third-party wealth management institutions,independent family office and obtain their respective strengths and weaknesses.Fourthly,through the comprehensive analysis of the above,we find out the external constraints faced by the trust companies:the lack of relevant legal system,imperfect trust registration system,imperfect tax system,insufficient social trust,and internal constraints:limited product supply,inadequate marketing ability,lack of professionals.Finally,in view of the external constraints faced by trust companies,this paper puts forward some suggestions to improve the relevant system.In view of the internal constraints of trust companies,this paper puts forward suggestions on providing customized products,improving marketing ability and cultivating professional talents,in order to help the trust companies develop family trust business.