A Study On Family Trust In China

Family trust has been developing rapidly in recent years,almost all of founders or executives of listed companies prefer to set an offshore family trust rather than a local family trust,which is undoubtedly relate to the inappropriate institutional environment that contains numerous blank or inapplicable provisions.Now,as an important part of the trust business,the developing of family trust may help the trust business go back to their original job to "help people manage their wealth".The function of trust and the concept of justice in family law to protect the weak have a lot in common,family trust can help the family to perform its social obligation,and provide convenience to help the implement of concept such as protect the weak.Chinese trust law only emphasizes the separation of trust property from settlor’s property and trustee’s property,we can not understand clearly the definition of trust property or beneficiary right.The article holds the opinion that it’s safe to regard the trust property as a special financial group,and it’s safe to regard beneficiary right as a special right.The settlor can not reserve the substantial control of the trust,so that the trust can stay independence.And the trustee and trust protector may reserve the power to manage the trust property,their responsibilities and power should be unified.We need to introduce spendthrift trust provision and discretionary trust provision.Anti-perpetuity clause may not be retained according to policy choice of our country.Family trust registration can be combined with property registration system.Detailing registration form according to the types of property may be useful,the regulation of family trust need to be separated from the financial regulatory system,and the court need to take more responsibility.At the same time,we also need to add more type of trustee,introducing natural person and private trust company.We also need to pay attention to special trust property,in order to improve the flexibility of asset allocation.