In daily life, more and more people are hearing a word more and more frequently: trust.
But many people do not know about this, because most people cannot come into contact with such business in their daily lives, so they have no way to understand it. Some relatives and friends around me have asked me what the trust is. So the editor also systematically explains this kind of knowledge to you, because there are many space and content and cases, and will bring you related content in many periods.
1. What is a trust:
Trust (Trust) refers to the act of the principal entrusting his property rights to the trustee based on his trust in the trustee, and the trustee will manage and dispose of the beneficiary in his own name in his own name or specific purposes according to the will of the principal.
Trust is a financial management method, a special property management system and legal behavior, and it is also a financial system; together with banks, insurance and securities, it forms a modern financial system.
Trust business is a legal act based on credit (this sentence points out the key points), which generally involves three parties, namely the principal investing in the credit, the trustee who is trusted, and the beneficiary who benefits from the person.
2. Three parties in the trust:
1. Principal: is the creator of the trust. He should be a natural person, legal person or other organization established in accordance with the law with full civil capacity of . The principal provides the trust property, determines who is the beneficiary and the beneficiary rights enjoyed by the beneficiary, designates the trustee, and has the right to supervise the trustee to implement the trust.
2. Trustee: Being responsible for managing and disposing of trust property, he should be a natural person or legal person with full civil capacity. The trustee must perform his duties conscientiously and fulfill his obligations of honesty, credit, prudence and effective management; he must manage and dispose of trust affairs in accordance with the provisions of trust documents and laws in the best interests of the trustee.
3, beneficiary : is a person who enjoys the beneficiary right of trust in the trust. It can be a natural person, a legal person or other organization established in accordance with the law, or an unborn fetus (one person or multiple people). The beneficiary of public welfare trust is the public or the public within a certain range. The beneficiary enjoys the trust interest in accordance with the provisions of the trust documents and has the right to waive his or her right to benefit from the trust. Except for the restrictive provisions of laws, administrative regulations and trust documents, the beneficiary rights of trust can be transferred and inherited in accordance with the law; the beneficiary, like the principal, enjoys the right to supervise the trustee for the implementation of the trust.
3. The role of trust:
1. Save property and accumulate wealth
transfer property rights to professional trust institutions through trust contract . Professionals conduct planned investment management based on the content of the contract, so that the property can fully exert its accumulated effect and will not lose the opportunity to create wealth due to premature dispersion or loss of property. At the same time, according to Trust Law , the creditors of trust property shall not request compulsory enforcement or auction of trust property; furthermore, trust property does not fall within the scope of the trustee's bankruptcy property. In addition, the claim of a trust property shall not claim to be offset from a debt that does not belong to the trust property.
2. Take care of the surviving tribes and benefit the descendants
Personal trust to replace inheritance after death, which can avoid disputes over inheritance of inheritance , and can also take care of more generations of descendants.
3. Designate beneficiaries, plan estate
personal trust replaces gifts during death, which can avoid children's squandering property, unfair distribution, children's dependence, and children's property shrinking and depreciating if children have no management ability. Instead of inheritance rights with the right of trust beneficiary rights, the will of the deceased can be implemented.
4, property planning, tax saving function
Personal trust can provide a comprehensive trust plan including investment, insurance, tax saving, retirement plan, wealth management and other trust management purposes according to each person's trust property and trust wealth management purposes, to meet the needs of individuals and their families at different stages, and to properly plan property for the principal.
or above briefly introduce to you what trust is. If you want to know more, please follow us. I will bring you more detailed content later.
