Research On Legal Issues Of Trust Exemption Clauses

The Trustee exemption clauses refers to the terms of the Trust Document that are designed to waive or limit the liability of the Trustee for breach of fiduciary duties.Along with the continuous development of commercial trusts and the continuous expansion of trustee power,trustees have incorporated increasingly broad exemption clauses into trust documents,making the trust system less vulnerable to beneficiaries.In this context,the issue of the legal validity of the trust exemption clause has become the focus of attention of judges and scholars.In response to this problem,many countries' legislation has already made clear provisions,but China's "Trust Law" has not yet been involved,which cannot be regarded as a major flaw in China's "Trust Law." This paper takes the exemption clause in the trust document as the research object.After introducing the relevant basic contents of the trust exemption clause,it analyzes the legislative logic of the validity of the trust exemption clause.At the same time,the statute law and case law of the extraterritorial trust exemption clauses were sorted out and evaluated.On this basis,this paper discusses in detail the legal validity of the trust exemption clause in different situations,including the trustee's violation of loyalty obligations and gross negligence.Combined with the above analysis,it points out the status quo and problems of the legal regulation of China's trust exemption clause,and puts forward some suggestions on the legislative construction of China's trust exemption clause.In addition to the introduction and conclusion,this article is divided into five parts:The first part gives an overview of the basic content of the trust exemption clause,detailing what is the trust exemption clause,including the background,type,characteristics and legal consequences of the creation and development of the trust exemption clause.The second part analyzes the legislative logic for the validity of the trust exemption clause.Firstly,it points out that the existence of trust exemption clause has its rationality.Secondly,it discusses the necessity of legal regulation of trust exemption clause.Finally,it discusses the basic logic that should be followed in the construction of trust exemption clause.In the third part,the essay and case law of the trust exemption clause are sorted out by means of list,and the extraterritorial legislative attitude and legislative mode are evaluated.The enlightenment and reference of China's legislation on trust exemption clause are obtained.The fourth part analyzes in detail the legal effect of the trust exemption clause in different situations.First,it analyzes the two criteria for verifying the legal validity of the exemption clause,that is,whether the breached obligation constitutes an unrestricted core obligation and the degree of fault of the trustee in breach of the trust.Under the first inspection standard,two specific situations for exempting the trustee from all obligations and loyalty obligations were analyzed.Under the second test,the trustee's fraud,malicious acts and negligence were analyzed.situation.At the same time,it is pointed out that the professional trustee should assume a higher duty of care,and the trust exemption clause cannot waive its responsibility for gross negligence.On the basis of analyzing the status quo and problems of the legal regulation of China's trust exemption clause,the last part puts forward that China's trust law can learn from the contract law's regulation method of exemption clause,and puts forward specific suggestions for the legislative construction of China's trust exemption clause.At the same time,it also discussed the alternative system of Trustee Liability Insurance,which is a liability exemption clause,with a view to further improving China's trust legal system.