Legal Research Of The Introduction Of The Revocable Living Trust In China

The living testamentary trust is a new type of trust that has emerged from the application of the trust system to the transmission and management of family wealth.Unlike existing testamentary trusts and family trusts,a living testamentary trust is characterised by a combination of self-interest and self-interest,a combination of living and death trusts,and the flexibility to revoke the trust during the life of the principal.For this reason,living will trusts are widely used and implemented in the United States and Japan.In order to meet the wealth management and inheritance needs of high net worth individuals in China,and to alleviate the difficulties in the development of the testamentary trust system in China,China can learn from the successful experience of foreign countries and introduce a new type of testamentary substitution tool,the Living Will Substitute Trust.This article takes the current legal environment in China as the background,analyses the potential problems faced by the introduction of a new type of trust,the Living Will Substitute Trust,and presents the author’s suggestions for the introduction of a Living Will Substitute Trust in China,taking into account the results of overseas legislation and judicial practice.The first chapter of this article takes the form of a case study,firstly showing typical examples of living will trusts from overseas,and then introducing two real-life domestic cases to illustrate the state of development of civil trusts,especially the emergence of testamentary trusts and modifiable trusts in practice.Then,through the real-life cases,the shortcomings of the existing civil trust system are illustrated,leading to the introduction of the living will trust system.Secondly,the concept of the living will trust system is clarified,and the differences between the system and other inheritance systems are illustrated,reflecting the advantages of the living trust.Finally,it focuses on the problems faced by the introduction of the living will trust system,including the problems of trust creation and trust effects.Chapter 2 elaborates on overseas legislation and practical experience,selecting the United States and Japan as representative countries of the common law and civil law systems,and focusing on analysing and summarising the successful legislative experiences of the United States and Japan.This chapter corresponds to a number of issues raised in Chapter 1,with a targeted collection and analysis of extraterritorial and legislative and practical achievements,specifically covering six areas: the continuous beneficiary regime,the duration of the trust,the trust principal’s right of revocation,pour-over wills,the protection of trust beneficiaries and the protection of creditors’ rights and interests.The third chapter is mainly based on the issues raised in the first chapter,taking into account the realistic legal background and the current development of civil trusts in China,and using the balance of interests thinking to discuss the proposals for introducing a living will in lieu of trust system under the current institutional environment in China,drawing on the extra-territorial experience in the second chapter.This chapter is divided into two sections.The first section puts forward proposals on the establishment of living will in lieu of trust,including the legal transplantation of the continuous beneficiary system,holding the current stage of permissiveness on the trust period,affirming the retention of the principal’s right to revoke the agreement and the adoption of pour-over wills to solve the problem of trust property addition.The second section analyses the protection of the rights and interests of trust-related subjects.The protection of the rights and interests of beneficiaries requires the supervision and efforts of multiple subjects,including the retention of the principal’s supervisory rights and the introduction of a private interest trust inspector;the protection of the rights and interests of trust creditors focuses on the retention of creditors’ recourse rights.