The difference between domestic trusts and trusts in Western countries will be explained from the following three points: (1) Comparison of overseas trusts and local trusts in terms of policies, rules and regulations

In terms of policies, rules and regulations In terms of regulations, since the domestic "Trust Law" is established based on the Anglo-American legal system, for family trusts, the domestic "Trust Law" is not very different from overseas trusts at the legal level.

my country's "Trust Law" stipulates the respective responsibilities of the trustor, trustee and beneficiary in the trust relationship, and stipulates that the trust industry refers to the trustor transferring to the trustee through trust actions, and Property handled or disposed of by the trustee in accordance with certain trust purposes, as well as property gains obtained through handling, use or disposal.

However, in practice, although Article 15 of the "Trust Law" stipulates that when the trustor is not the only beneficiary of the trust, the trust can survive the death, revocation, or bankruptcy of the trustor. The trust estate does not serve as its estate or liquidate the estate. However, there is great uncertainty as there is no practical precedent on whether the trust industry can actually end its isolation, and whether the Trust Law can be hostile to other laws such as the Contract Law.

In addition, in terms of trust industry transfer, real estate, equity and other assets are difficult to complete and completely transferred to the name of the trust plan due to the hierarchical system, so there are also difficulties at the operational level. (2) Comparing overseas trusts and local trusts from the perspective of trust companies

As for trust companies, overseas trust companies mostly act as consultants and provide trust plans and tax plans based on the actual conditions and needs of the trustee. , plan trust structure, can charge high consulting fees for just one plan. After the trustee agrees, the trust company will help the trustee establish an overseas trust and provide long-term management/management and consulting services. In this way, management fees will be charged for many years until the trust is completed.

In terms of trust establishment, overseas trusts will often open subsidiaries in offshore islands, then transfer the trustee’s assets to the offshore company, and establish directors in the company for management. During the life of the trustee, the directors of offshore companies are mostly handled by the trustee himself or the person designated by him. After the trustee's death, the investment will be made by the consultant designated by him or by a third-party investment consultant hired by the trust company. It is guaranteed that When it comes to maintaining and increasing the value of trust assets, the trust company itself will avoid it because it is a party to the trust relationship and will only dispose of the trust benefits according to the will of the trustor. This is different from the practice of domestic trust companies acting as trust industry investment consultants.

After all, when it comes to trusting trust companies, since their own trusts may last for a long time, this requires a great deal of trust from the trustor in the trust company. Most foreign trust companies have been established for decades or even more than a century, and have long-term excellent creditworthiness and management experience. In contrast, domestic trust companies were mostly established after the founding of the People's Republic of China and are not stable. In addition, domestic trust businesses have long been oriented towards providing funds to fund demanders, rather than providing wealth management for high-net-worth customers based on their needs. planning, so the experience in this area is also lacking. (3) Comparing overseas trusts and local trusts in terms of customer needs

In terms of customer needs, European and American wealthy people mostly establish overseas trusts for the following purposes:

Wealth inheritance. Establish a trust to trust the family company or inheritance and pass the assets to children or grandchildren, which can prevent third parties and other disputes. Even after the trustor dies, his assets can still be distributed and disposed of according to his own will. Through the trust, the trustor can not only achieve the purpose of raising a beneficiary after his death, but also control the beneficiary from The wealth gained was squandered. In addition, you can also avoid high tax burdens such as inheritance tax. At that time, most developed countries in Europe and the United States, including East Asia and Southeast Asia, levied high inheritance taxes, up to 70%. This was one of the primary reasons why many wealthy people set up overseas trusts.

Asset isolation. The trustee transfers a series of assets such as shares in his name to an offshore company, and the ownership of the assets is transferred. In this way, even if the trustee incurs debts or goes bankrupt in the future, his trust assets can be guaranteed to be safe. At the same time, it can also hide its own industrial information through this method. In addition, establishing a pre-marital property trust can also ensure the isolation of pre-marital property and post-marital property.

Public trust. Similar to inheritance trusts, by establishing a trust and setting the beneficiary as a charitable institution or yourself, the beneficiary purpose of the trustor can be achieved.

In my country, family wealth has accumulated rapidly in recent years, and the demand for wealth distribution and management will bring possibilities to its own trust market. At the same time, the aging trend is accelerating, pension insurance and wealth inheritance have also put forward a strong market demand for our own trust products.

In addition to the above requirements that are the same as foreign countries, there are also some different characteristics.

Overseas trusts, like local trusts, are the first choice for investors to make financial investments. However, compared with other local trust types, overseas trusts can better facilitate the management and inheritance of wealth. Therefore, they are easily loved and sought after by large families and have become an important way to transfer wealth.