On Legal Issues Of Invalid Trust

With the successive introduction of the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions"(hereinafter referred to as "the new rules for asset management")and "Minutes of the National Court of Civil and Commercial Trial Work Conference"(hereinafter referred to as "Minutes of the Nine Minutes"),both The regulatory level is also the judicial level.It has a negative attitude to the commitments of financial institutions such as trust companies to protect capital and protect profits and guarantee principals from losses.When this promise is not fulfilled,trust disputes will occur.Coupled with the weakness of the real economy and the increasing difficulty of corporate financing,it is likely that the actual user of the funds will be unable to redeem the trust plan in accordance with the predetermined high yield.The occurrence of underlying assets that are difficult to pay or the default of the underlying debtor will increase,further exacerbating the occurrence of trust disputes.Among the many types of trust disputes,there is one type of trust dispute that deserves special attention,that is,various types of disputes caused by the invalidity of the trust.This article takes the invalid trust as the starting point and divides it into five parts.The first part is the concept and cause of invalid trust.Specifically,it includes the concept and cause of invalid trust.Conceptually,invalid trust generally refers to the fact that the trust does not meet the effective requirements of the law or there are illegal reasons,so that the effect of the trust law cannot occur,and the trustee,benefit Establish trust relationships between individuals and trustees.Regarding the causes of invalid trusts,it is necessary to distinguish between general invalidation of trusts and invalidation of trusts due to illegal reasons.The distinction between the two has different effects on the subsequent research of related issues.The second part analyzes the effect on the effectiveness of the basic behavior after the trust is invalidated.First of all,combined with extraterritorial experience,according to China’s current system,put forward the structure of trust behavior under different circumstances.Secondly,it discusses that there should be a distinction between trust behavior and the basic behavior of building a trust relationship.The two are not the same.The establishment and effect of a trust act need to be divided into different stages,so the consideration of adverse effects after its invalidation should also be considered step by step.Under China’s current legal system,the legal effects of contracts and wills should be judged separately according to their respective norms.The third part explains the impact on the internal relations after the trust is invalidated.It mainly discusses from the issue of property ownership and the payment of trustee’s remuneration.In terms of property ownership,first of all,we analyze the property ownership and its shortcomings after the current invalidation of the trust in China;secondly,we summarize the property ownership of the extraterritorial trust invalidation system for reference;Thoughts on the construction of China’s invalid trust property ownership system.Regarding the payment of the trustee’s compensation,the payment of the trustee’s compensation after the trust is invalidated depends to some extent on whether its obligations are properly performed,that is,the trustee’s fault judgment.The discussion is based on the analysis of the current system and drawing on extraterritorial experience,and puts forward the criteria for judging the fault of the trustee after the invalidation of the trust in China,and then puts forward the standard of remuneration payment after the trustee’s invalidation.The fourth part analyzes the influence on the external relations after the trust is invalid.The trust system is generally only an internal relationship between the three parties,but in practice,a legal relationship with other parties outside the trust relationship will still occur,and this relationship is mainly manifested as the relationship and benefits between the trustee and a third party The relationship between the person and the third party is two aspects,then the follow-up treatment after the trust is invalid should be judged separately based on the parties’ fault reasons.