Legal Research On The Offshore Family Trust

The offshore family trust originated in the 20 th century as a tool for inheriting wealth.Perfect offshore trust legal system can better realize the risk isolation of trust property.At the same time,offshore family trusts also have significant tax planning and high confidentiality.Due to the flexible structure,offshore family trust has outstanding corporate governance functions,which can realize the separation and balance of corporate ownership,beneficiary rights,and control rights.It is more conducive to the independent inheritance of family property and maintain the stability of the shareholding structure.To set up an offshore family trust,domestic assets need to be placed in a family trust set up in an offshore place,which will face many legal problems such as the risk of overseas holding structure and the restriction of domestic capital market on listing of trust shares.China’s trust industry started relatively late,and the offshore family trust business has only risen in recent years and is still in very underdeveloped stage.Through the legal research of offshore family trust,this paper focuses on the ingenious design of different legal structures of offshore family trust and the analysis of its problems,which has certain practical significance for the development of offshore family trust in China.This article consists of four parts.The first part is about the institutional foundation of offshore family trusts,and elaborates the origin and development of offshore family trusts,its institutional advantages,and corporate governance functions.The second chapter makes a type analysis of the legal structure of offshore family trusts from the combination of cases,and further analyzes the special types of trusts,multi-layer offshore structures,and the control of the trustee.The third chapter is the legal dilemma and practical difficulties faced by offshore family trusts.It mainly analyzes the offshore structure risks of offshore family trusts,restrictions on domestic listings,and insufficient combination of control rights.The fourth chapter puts forward some suggestions for the establishment of offshore family trust system,and provides theoretical reference for the development of offshore family trust in China.