An Exploration Of The Balance Of Interests Of The Parties In The Spendthrift Trust

The spendthrift trust is a kind of trust created to guarantee the life of the spendthrift and limit his spendthrift.It means that the trustor adds a clause prohibiting the spendthrift in the trust documents to avoid the creditor from chasing the trust benefits enjoyed by the spendthrift.The Spendthrift Trust originated in England and was widely used and developed in the United States.Article 47 and Article 48 of Trust Law of China have the stipulation of "restriction of trust documents",which provides a certain system and legal space for the establishment and development of the Spendthrift Trust.Due to the fact of that China’s Spendthrift Trust System only has broad legal statements and a series of system construction for its development in China is not clear,it’s easy to produce interest conflicts between interest subjects and unfair social effects.With the enactment of the Civil Code of the People’s Republic of China,Testamentary Trust has gradually developed,and some forms of Spendthrift Trust are not in harmony with the development of Testamentary Trust.Therefore,it is necessary to balance the interests among the interest subjects in the trust system of prohibiting profligacy,to put the idea of interest balance through the legislative thought and normative structure,and to construct the system of Spendthrift Trust in China in a more comprehensive and perfect way.The first chapter of this paper introduces and analyzes the development of the Spendthrift Trust System.Spendthrift Trust has the important functions of realizing the client’s will,preventing squandering and effectively managing the property.Based on introducing the historical origin and functional value of the Spendthrift Trust System,and analyzing its development background in China,this chapter is to clarify the legitimacy of the development of it.After clear the content,the chapter on Spendthrift Trust System in our country the relevant interpretation and analysis,and combining the Testamentary Trust related laws and regulations,points out its problems prone to conflicts of interest between the parties,to demonstrate the necessity and urgency of balancing the interests of the main body in the spendthrift trust system.The second chapter analyzes the conflicts of interest between the trustor and the trustee,between the trustor and the beneficiary,between the trust property and the trustor’s creditor,and between the beneficiary and the creditor.Then,this chapter combs and analyzes the value conflicts behind the interest conflicts of the parties mentioned above,further demonstrates the freedom,efficiency and fair value conflicts implied in the interest conflicts,and demonstrates the value premise that should be respected in setting the trust interest balance mechanism between specific parties.The third chapter mainly introduces the reference to the balance mechanism of extraterritorial interests.Through the analysis of the previous chapter,this paper has made clear the value choice followed by the trust interest balance mechanism.This chapter analyzes and sorts out the exceptional creditor,trust protector system and management deviation rules in the judicial practice outside China based on the relevant value selection criteria,so as to provide reference for the establishment of the interest balance mechanism in the Spendthrift Trust in China.The fourth chapter takes the balance mechanism of trust outside China as a reference and constructs the balance design of trust that prohibits wasteful consumption in China from the value level and the system design level.Through the above analysis and demonstration,the article has clearly prohibited the value selection content to be followed in the setting of the balance mechanism of the interests of the parties in the squandering trust and the corresponding institutional experience outside the territory.This chapter provides directions for the construction of China’s trust system against spendthrift from the following aspects: first,the validity of the trust against spendthrift is clearly defined,the requirements for its establishment are clearly stipulated in the article,the establishment of self-beneficial spendthrift trust is clearly prohibited,the limiting scope of the clause against spendthrift is clearly defined,and the management deviation rules are stipulated;Second,restrict the application of the clause of Spendthrift Trust,such as the qualification and benefit right of the beneficiary,and strengthen the publicity system;Third,by setting up trust protector and broadening the establishment form of trust will,the Spendthrift Trust and Testamentary Trust system are connected.Through the above legal system design,we strive to solve the conflict of interest of the parties in the second chapter,improve the system of Spendthrift Trust in our country,and give better play to its due function.