As one of the four pillars of the financial industry, trust industry has its unique advantages in personal finance compared with banks, insurance, securities and funds.
(1), separation of ownership, management and beneficial right of trust property.
Trust and investment companies can customize trust products according to customers' preferences and characteristics, and meet customers' requirements to the maximum extent through expert financial management. The beneficiaries of trust products can be themselves (self-beneficial trust), others (other-beneficial trust) and the public (public trust), which is unique to trust products. This kind of investment method and the flexibility of products are lacking by brokers, banks and fund companies. Compared with personal financial management, expert financial management saves time and worry, with low risk and high income. Personal funds raised through trust are operated by professionals, who can make portfolio investment by virtue of their professional knowledge and experience and skills to avoid the blindness of personal investment and achieve the purpose of reducing investment risks and improving investment returns.
(2) Trust property has legal independence.
Once a person's property has passed the legal trust form, it will not be pursued by the principal, the trustee (trust and investment company) and the debtor of the beneficiary. Even if the trust and investment company goes bankrupt, the trust property can be completely handed over to other trust and investment companies for continued management. Therefore, the independence and security of trust property are protected to the maximum extent in law.
(3) Diversification of investment fields
According to the characteristics of trust, trust and investment company is the only financial institution that is allowed to invest in capital market, money market and industry at the same time. Diversification of investment fields can effectively reduce investment risks to a certain extent and maximize investors' income.
2. Institutional advantages of trust.
Compared with similar legal systems, trust is a more effective system design for property transfer and management, and its advantages are mainly manifested in the following three aspects:
(1), the trust system is conducive to long-term planning.
The existence of trust is consistent Trust will not be terminated due to the death, dissolution, bankruptcy, resignation, dismissal or other circumstances of the trustee, which is stable and long-term, and is more suitable for long-term planning of property transfer and property management.
(2) The trust system is more flexible.
This is manifested in the following aspects: the diversification of trust property, everything with monetary value, whether movable or immovable, property right or creditor's right, tangible or intangible, can be used as trust property to set up a trust; The purpose of trust is liberalization. As long as it does not violate the mandatory provisions of the law and public order, the client can create trusts for various purposes; Trust has a wide range of applications, and there are many types of trust.
(3) Beneficiaries' interests can be effectively protected.
On the one hand, the ownership of trust property is separated from the beneficial right. Legally, the trust property is placed in the name of the trustee. According to the law and trust documents, the trustee enjoys the property right of the trust property and has the right to manage, use and dispose of the trust property in his own name. The trustor and the beneficiary have no right to manage and dispose of the trust property, but the benefits generated by the trust shall be enjoyed by the beneficiary. On the other hand, the trust property is independent, which protects the trust property from recourse by the creditors of the principal or the trustee, thus giving the beneficiary priority over the creditors of the principal or the trustee. Finally, according to the relevant laws and regulations, trust has the function of confidentiality.