Relief Of The Rights Of The Third Party Outside The Offshore Trust

Offshore trust stands out among many trust types due to its high degree of asset type inclusiveness,privacy,flexibility of right allocation and perfection of legal norms,which has been favored by high net worth people all over the world.However,it must be clear that if the offshore trust settlor abuses the offshore trust to evade the debt by virtue of its risk isolation and asset preservation functions,the settlor must face the challenge to the effectiveness of the offshore trust and the independence of the trust property that the third party outside the trust initiates for the relief of its own rights.As the offshore trust structure usually exists among different jurisdictions,in the case of litigation between the third party outside the offshore trust and the settlor on the offshore trust property,the differences in the jurisdiction basis,legal conflicts and the differences in the applicable rules and regulations of laws in various jurisdictions have become the fundamental problems that both parties must face.As the offshore jurisdiction usually makes saturated legislative provisions on the basis of jurisdiction,and there are many connection points of offshore trust and they are easy to change,the way of external third party’s right relief should solve how to choose the most favorable jurisdiction firstly.In addition,the external third party must make it clear that whether its appeal can be realized or not depends on which country trust legislation the magistrate court will choose as the applicable law to measure the effectiveness of offshore trust and the independence of trust property.In the common law system,when confirming the trust effect and the independence of the trust property,it insists on the position that the settlor withdraws from the trust establishment.Under the influence of the concept of "one thing,one right",the continental law system usually allows the settlor to reserve specific supervision and relief rights after the trust establishment.The offshore jurisdiction recognizes that the settlor retains the management and distribution rights of the trust property on the basis of the trust property independent status of trust property.As the bridge to guide the applicable law of offshore trust,the applicable norms of trust law are not completely consistent.Although the principles of trust law application established in the Hague Trust Convention are directly or indirectly accepted by the contracting and non-contracting states of the Convention,there is no consensus on the specific rules of offshore trust law application in the world at present.There are obvious differences between the application rules of trust law established in the law on the application of foreign civil relations in China,the Hague Trust Convention and the general application rules of trust law in offshore jurisdictions.This difference,combined with the above jurisdictional conflicts,directly determines the applicable law of offshore trust,and then determines whether the claims of the external third party can be supported by the court.As more and more people with high net worth choose to settle offshore trust in China,the possibility of association between offshore trust and trust legislation and applicable rules of foreign trust law is increasing in the future.Therefore,it is necessary for China to perfect the application system of foreign trust law from the perspective of legislation and justice,so as to make full preparation for the possible judicial disputes in the future.