The Research Of The Family Trust

With the rapid development of economy in the past few decades, wealth of society as well as individuals of China has reached an unprecedented level. It is becoming increasingly significant for wealthy people to think about how to effectively manage and inherit those achievements, which obtained from the policy of reform and opening up. Among the large number of administrative tools, Family Trust is the most attractive and mysterious part. From the perspective of extraterritorial practice, not only can Family Trust break the spell of “rich, but just three generations”, but also it can provide family business with positive political mode to guarantee the concentration and stability of stock rights and profits respectively. The research about Family Trust made by domestic law community still remains at primary stage, because Family Trust System derives from England and it is known by Chinese people gradually in recent years. In order to clarify its legally mechanism, this paper will make a further research about Family Trust System, contributing to the establishment of China’s Family Trust System to some extent. This paper includes four parts. It will introduce demand growth of China’s Family Trust System as well as the present situation of business transformation of trust companies promoted by supervision organizations. In this way, significance of the development of China’s Family Trust System can be explained and its special relationship between right and obligation can be analyzed. Based on the reference of operation of foreign Family Trust System, this paper will dissect its confronting problems in China’s legal system, putting forward some suggestions for Family Trust System of China at last.The first part is the background and present situation of the development of China’s Family Trust System. Started from the introduction of phenomenon that high net wealth individuals of China are tending to set up offshore trust, causing loss of national wealth, the first part will then lead the realistic demand of the development of China’s Family Trust System. At the same time, based on the exposition of the development condition of China’s Family Trust products, the first part will analyze the advantages of Family Trust System and illustrate the necessity of the development of Family Trust System.The second part is the legal dilemma of the development of China’s Family Trust System. Founded on the presentation of the first part, the second part will introduce the possible obstacles, which may appear in the process of development of China’s Family Trust System. These obstacles include unknown legal status of Family Trust System, absent registration system of trust property, confined range of consignees of Family Trust System and the missing system of qualification admission, incomplete system of trust revenue, incomplete uniform supervision of trust industry and the like.The third part is the legal mechanism analysis of Family Trust System. This part includes the introduction of clients of Family Trust System, relationship between rights and obligations, the variety as well as range of trust property and the like, analyzing the characteristics, which are different from other types of trust.The fourth part is the specific suggestions of the establishment of China’s Family Trust System. According to the analysis of present obstacles of the second part, this paper thinks that the antagonism of trust registration can be adopted. In this way, it can reconstruct the range of consignees of Family Trust System, consummating the revenue system, establishing independent legal status of Family Trust System and the like to wipe out the legal barrier of the development of China’s Family Trust System.