Analysis Of The Trust System Beneficiaries And Third Party Conflict And Equity

Through comparing the way to balance the interests between beneficiaries and purchasers in the common law system with which in the civil law system, this paper discusses how the civil law system adopts trust principle on the basis of inherent civil law system after introducing the trusts. Analyzing the rule of inheriting and localizing the trust legal system can reveal to us that should China localize it in accordance with the reality of the country, thus being able to perfect the current legislation on balancing the interests between beneficiaries and purchasers.There are two clues. The first is analysis in theory, which summarizes the way to balance the interests between beneficiaries and purchasers. The second is suggestions on legislation, which gives advice to perfect the current legislation. This paper is divided into five parts.Part I is the foreword. This chapter demonstrates the necessity and feasibility of introducing the trust system by presenting the function of the trusts and the fact of legislation in the world, then puts forward the way to study and its purpose.Part II is about the essential of the conflicts between beneficiaries and purchasers. The conflict substantively is between static security and business security, free trade and holistic efficiency.Part III is about the prior prevention system, which is consist of fiduciary duties of prudence, fiduciary duties of loyalty and the demonstration system. Concerning the duties of prudence, this chapter introduces the standard of care in common law, and points out the absence of investment criteria in China. With regard to the duties of loyalty, this chapter brings forward an ideal relationship model of loyalty, and gives some advice of legislation reform. In addition, trust demonstration aims at protecting business security, which does not mean depriving the interest of beneficiaries. It is necessary for China to perfect demonstration and registration system for trust property.Part IV is on the system of interest balance after the conflict occurrence. It involves equitable tracing and constructive trust in common law, and the right of...