What is a trust?
A trust is a legal structure that is created by a legal entity that can be either a person, company or any other legal entity, called a Trustor or Settler, settling or entrusting some asset it owns to a legal entity called a Trustee. The Trustee will manage and deal with the asset in accordance with the wishes of the Trustor for the benefit of persons designated by the Trustor as beneficiaries of the Trust.
In order for a trust to comply with the provisions of the Trust Act of China, firstly, the trust must have a lawful aim or purpose, secondly, the asset given by the Trustor to the Trustee must have been owned by the Trustor and thirdly, the trust must be documented in writing signed by the Trustor and the Trustee.
Back
