Research On The Legal Dilemma And Countermeasure Of Family Trust System In China

Family trust,as a legal tool to ensure the efficient inheritance of family wealth,has gradually attracted the attention of high net worth groups.Although the family trust related business in our country is still in its infancy,but has a broader market prospect,the major domestic financial institutions began to explore the family trust business.The "Trust Law",which was promulgated and implemented in 2001,regulates the trust industry in our country to a certain extent.However,due to the lag of the relevant legal system,the development of family trust in our country is still faced with certain legal dilemma.Based on this,this paper starts with the origin of family trust,defines the family trust from the concept and characteristics,and explains the function of family trust in detail,which provides a strong theoretical support for the following demonstration.Then it explores the development of family trust in our country from modern times to now,and points out the impact of the "Civil Code" on family trust.It reveals the current legal dilemma faced by the family trust system in our country,mainly including: differences in the ownership of family trust assets,defects in the family trust registration mechanism,and lack of supporting tax system.Based on the investigation of family trust systems in both American and American law systems,the measures to improve the family trust system in our country are as follows: first,to clarify the ownership of family trust assets belongs to trustees,which will help trustees to effectively exercise their rights and effectively manage and dispose of the trust assets;second,to establish an appropriate trust property registration model based on the current effectiveness model of ownership registration in China.At the same time,to determine the authority for trust registration and clarify the scope of property to be registered as well as the content of such registration,in order to optimize China’s trust registration system;third,to establish a family trust tax system,it is suggested that China adopt the trust guidance theory,determine the beneficiaries as the taxpayers,and to determine the tax payment timing in accordance with the accrual taxation principle.At the same time,the tax avoidance of family trust should be treated with tolerance and prudence.