What Is a Master Trust?

The trust subject, also known as the trust relationship, refers to the parties involved in the trust, including the client, trustee, beneficiary, etc.

Trust subject

discuss

The trust subject, also known as the trust relationship, refers to the parties involved in the trust, including the client, trustee, beneficiary, etc.

Chinese name

Trust subject

nickname

Trustee

Subject includes

Client, trustee, beneficiary

Range

Fiduciary relationship

Composition of the trust entity

The trust subject includes the client, trustee and beneficiary.

1. The client is the founder of the trust relationship. He should be a natural person, legal person, or other organization established in accordance with law with full capacity for civil conduct. The client provides trust property to determine who is the beneficiary and the beneficiary rights. Designate a trustee and have the right to supervise the implementation of the trust by the trustee.

2. The trustee is responsible for managing and disposing of the trust property. A natural or legal person who shall have full capacity for civil conduct, but is generally a legal person. The trustee must perform its duties with due diligence, honesty, credibility, prudence and effective management. It must be in the best interest of the beneficiary to manage the trust property in accordance with the legal provisions of the trust document.

In China, the trustee is a trust and investment company specifically established with the approval of the China Banking Regulatory Commission, which is a non-bank financial institution.

3. The beneficiary is the person who enjoys the trust beneficiary rights in the trust, and may be a natural person, a legal person, or other organization established in accordance with the law. It can also be an unborn fetus. The beneficiaries of public trusts are the public.

The trustor and the trustee are the foundation of the trust relationship, and the beneficiary is the end point of the trust relationship. Between the three trustees, sometimes two of them are unified, sometimes they are not unified. They can be divided into the following situations: when the client is equal to the beneficiary, it is a self-interest trust; Trust; when the trustee is equal to the beneficiary, there is no need to establish a trust and it should be prohibited. However, when the beneficiary is two or more and the trustee is one of the beneficiaries, the establishment of a trust is permitted.

In simple terms, in the trust process, the economic relationship established by the three parties of the trustor, the trustee and the beneficiary around the trust property is called a trust relationship, and the three parties are called trustees.