Research On Legal Issues Of Domestic Establishment Of Equity Family Trust

With the continuous growth of private wealth,the demand for wealth inheritance of high-net-worth individuals has become stronger.Equity,as the most important asset form of family businesses,also has the need for inheritance.In recent years,equity family trusts have received more and more attention from high-net-worth groups due to their functions such as debt avoidance and tax saving,seamless inheritance,and prevention of equity dilution,domestic wealthy families have sought to establish equity family trusts.For a long time,offshore land has attracted a large number of high-net-worth individuals with its mature trust system.However,offshore trusts have many risks such as remote management and legal application,many wealthy families began to try the domestic establishment of equity family trusts.Although the "Trust Law","Company Law" and "Civil Code·Contracts" provide legal feasibility,due to the lack of relevant supporting systems,it can only be established indirectly through fund trusts in practice.It is necessary to face up to the difficulties of trust registration,trustee selection,securities supervision,taxation,etc.in the domestic legal environment for the establishment of equity family trusts,start with the improvement of rules,and explore relevant solutions.First of all,for the registration obstacles faced by the establishment of equity family trusts,the trust registration system should be improved,the effectiveness of trust registration should be changed from "effectiveness" to "confrontationism",and the establishment of registration institutions should adopt "substantial decentralization and uniform form" model,with China Trust Registration Co.,Ltd.as the window,the Securities Depository and Clearing Institution and the Market supervision and management department complete the specific registration items,and establish a hierarchical inquiry system.Secondly,regarding the difficulty of selecting trustees,the restrictions on trustee qualifications should be appropriately relaxed.From the perspective of trust practice and legal interpretation,the legitimacy of entities other than trust companies as trustees should be recognized,and foreign private trusts should be used for reference to meet the needs of the establishment of wealthy families.Thirdly,for strict securities supervision,new approaches to securities supervision should be actively explored.Under the premise that the actual controller remains unchanged,various securities supervision rules triggered by them should be exempted,and the equity income rights should be allowed to be used as trust property alone,which can meet the needs of the settlor to retain control.Finally,in response to the tax dilemma,it is necessary to speed up the improvement of the trust tax system,improve specific tax rules based on the implementation of the principle of substantive taxation,allow deferred taxation and provide certain tax preferences.Through the improvement of the above-mentioned rules,a good legal environment is created for the establishment of equity family trusts,and the "blue ocean" of equity family trusts is truly kept in China.