Family trust is a kind of inheritance trust.

Heritage Trust, which is managed by entrusting a third party, can well play the four functions of preventing disputes, encroachment, profligacy and risks, and can well avoid inheritance tax, so it has been welcomed by foreign countries, especially wealthy people, and has become the first choice for inheritance. In Hongkong and Taiwan Province, many people have successfully realized the smooth transition and long-term prosperity of family businesses through the establishment of heritage trusts. As for when to implement the heritage trust in China, it depends on: first, the further improvement of the legal environment, such as the improvement of the entrusted subjects (at present, only trust companies can engage in trust business in China, and funds and individuals are not allowed to participate, which limits the development of heritage trust to a certain extent), the solution of secondary taxation, and the clear positioning of capital trust business; Second, the trust business products, business scope and investment ability have been further enhanced. At present, most of the products of domestic trust companies are trust loans and bank-trust wealth management, but there are few investment capital market products. The low investment ability limits their own development and makes people generally lack confidence in trust companies. Third, the inheritance tax should be introduced reasonably and timely. Nearly 3 years of reform and opening up have made the first generation of wealthy people in China enter the period of property inheritance. The timely introduction of inheritance tax can not only improve the social equity system, but also help to form a social atmosphere of advocating self-employment in society and promote the development of trust undertakings represented by heritage trusts.