What are the essential elements of a foreign trade trust? 1. Trust all parties. Namely, the principal, the trustee and the beneficiary.
2. Trust intention and trust purpose. Trust intention should be expressed in an explicit way, and trust purpose should be specific and clear, both of which depend on the parties' expression of will. As long as the parties have the intention to set up a trust, and the purpose of the trust is indicated in the intention, this condition for setting up a trust is met. In practice, for establishing a trust through a trust contract, the expression of will of the parties to the trust contract is mainly investigated.
3. Trust property. Trust property should be definite, that is, the name, type, basic situation and scope of trust property must be clear.
4. Written form.
Characteristics of foreign trade trust 1. Flexible transaction structure
Trust products can use the structural design of priority beneficiaries and inferior beneficiaries to properly bind and share the investment risks of beneficiaries and investment consultants.
2. The risk is controllable
Trust companies use various means to carry out risk management on investment projects. Mortgage, pledge guarantee, structured design, trust direct shareholding and so on.
3. Confidentiality
Trust manages and uses the trust property in the name of the trustee, which effectively solves the problem that customers are unwilling to disclose the business secrets of the trustee and beneficiaries.
4. Various forms
Trust property can be entrusted in various forms, such as funds, securities, movable property, real estate, capital claims, etc. As long as it does not violate the mandatory provisions of the law and public order and good customs, the trustee can set up trusts for various purposes, with a wide range of trust applications and a variety of trust products.
Matters needing attention in selecting trust products 1. Pay attention to the risks of trust wealth management products.
Trust companies are financial institutions officially approved and supervised by the state. It is supervised by the China Banking Regulatory Commission, just like the supervision unit of a bank. Trust wealth management products are safer than value investment products, such as gold investment, stock investment and futures investment. By improving risk control measures, product risks can be minimized.
2. Pay attention to choosing a trust company with good reputation.
When choosing trust financing products, investors must seriously consider the assets and integrity of trust companies to determine whether trust financing products are worth buying.
3. Pay attention to estimate the yield of trust products.
The investment target of trust wealth management products has been determined before sale, so investors can predict the return rate of the project according to the investment target of trust funds, the stability of cash flow and the market situation in a certain period of time.