Legal Research On The Offshore Family Trust

The offshore family trust was born in the 20 th century.The trust principals mainly use their special advantages and use the flexible trust structure to avoid risks such as domestic laws and achieve the goal.The offshore family trust also has other functional advantages.The first is to continue the control of the family business and protect the integrity of the stock.The second is to use the offshore legislative system to achieve reasonable tax avoidance and provide stable judicial guarantee.The third is strict confidentiality system ensures family privacy.After continuous development,offshore trusts have shown increasingly obvious advantages in asset protection,company listing,family governance,and tax planning.As the offshore financial center has a series of advantages such as perfect legal system,good tax environment,stable political environment and developed financial system.It has become the world’s leading offshore trust establishment.Currently,the world’s most famous offshore financial centers are BVI,Cayman Islands,Bermuda,Isle of Man,Jersey,and Liechtenstein.In order to attract foreign investment and develop offshore trusts,offshore sites have a more special and flexible trust structure design in order to provide clients with a private customized trust structure.The offshore family trust has experienced many years of development and gradually improved and is growing in size.In contrast,China’s domestic offshore family trust is still in its infancy.The non-standard law formulation seriously hinders the listing of family businesses.The strict listing disclosure system affects the confidentiality of trusts.Therefore,research on offshore family trusts and key analysis of their legal framework issues are of great significance for the future development and expansion of offshore family trusts.The general structure of the article is as follows: Firstly,it introduces the theoretical basis of offshore family trust and analyzes the theoretical overview,type division and special functions of offshore family trust.The second chapterfocuses on the legal structure and institutional advantages of offshore family trusts.The legal framework of the offshore equity family trust,the legal structure of the private trust company and some special trust structures are summarized.Combine the case to analyze the institutional advantages of each trust structure.The third chapter analyzes the legal dilemma of offshore family trust,the governance of offshore equity trusts,and the obstacles to overseas listing.Finally,it highlights the problems of offshore family trusts in terms of risk isolation.The last chapter puts forward some suggestions on the construction of the legal system of offshore family trusts and in order to improve the governance model of offshore family trusts.