Reaearch On Family Trust Model

With China's economic development entries the "new normal" pattern, China's private wealth market is still maintained a rapid growth rate. Since the reform and opening up, the first batch of family businesses have been appeared in China, with the rapid economic development, many of the first batch of entrepreneurs have accumulated a large number of private wealth. As time goes on, the business owners began to consider how to guarantee their own wealth which was created by themselves, and inherit them according to their own wishes. The inheritance of family wealth not only benefits the economic development, but also social stability. Many family businesses are difficult to continue their glory, an important reason is that the successor is lack of management capabilities, and some are not interested in. There is another problem that many problems are derived from the expansion, if divided the property equally, it will easily thin the enterprise capital, a big business is often divided into several small businesses and develop respectively, thus it greatly reduce the ability to resist risk when they at risk. Under the current background, whether the wealth can be inherited smoothly is an important issue for country. Take Britain and the United States for example, after hundreds of years of development of the family trust mode, it already has a very mature operation system, plays an important role in the inheritance and development of enterprise, protection of the family property, management of family property, information security of family property.This paper mainly makes a comprehensive study of the pattern of family trust. It analyzes the origin of the family trust, and the development patterns of the United Kingdom and the United States based on previous domestic researches. Then, it systematically summarizes the pattern of domestic family trust by the researches on the current situation of domestic family trust. This paper minutely analyzes the research value of the family trust, and the functions in the guarantee of inheritance of family business, as well as the protection of family property by the analyses of theories and cases. Through the analysis of some core functions of the family trust, as well as the practice at home and abroad, this paper introduce the role of family trust in the management of family property and information security of family property in detail. But because of the short time of family trust's development in domestic, there is a common deficiency in people's understanding on the family trust, in addition to the imperfection of domestic corresponding legal system; there still have many problems in the process of the promotion of the family trust currently in the country. Therefore, this paper makes a detailed list of the chanlleges which the family trust faced in China, as well as the impact of these issues on the application and promotion of family trust. And it also puts forward some specific measures to improve these problems. In the macro perspective, the government should clarify the subject of the tax,also should improve the relevant system in order to make the family trust play a even better role in the management of inheritance and wealth. In the micro perspective, the trust institution should combine trust functions with the advantages of other wealth heritage tools not only in order to innovate management mode, but also to increase the cultivation and publicity of professional talent, which is able to make the family trust show its true value.