Trust property refers to the property that the trustor transfers to the trustee through trust behavior. Trust property includes both tangible property, such as stocks, bonds, goods, land, houses and bank deposits, and intangible property, such as insurance policies, patents and trademarks, reputation, and even some contingent interests.
Trust property has the right of subrogation and will not change its identity because of the change of property form; Property acquired by the trustee as a result of managing, improving, disposing of or destroying the trust property also belongs to the trust property. Trust property has legal independence; The trustee shall manage the trust property and its own property separately. When the trustee dies, the trust property shall not be inherited as an inheritance.
2. What are the principals, trustees and beneficiaries?
The trust relationship stipulates that a trust must have three parties: the principal, the trustee and the beneficiary. Based on the trust in the trustee, the trustor entrusts his specific and legal property to the trustee, and the trustee manages or disposes of it for the benefit of the beneficiary or for a specific purpose according to his wishes.
Although the trustee plays a central role in controlling, managing and disposing of the trust property, he must manage the trust property according to the wishes of the client. In China, according to the provisions of the Administrative Measures for Trust and Investment Companies, the trustee is generally a trust company, which must fulfill its duties and fulfill its obligations of honesty, credibility, prudence and effective management.
The beneficiary is the person who enjoys the benefits in the trust relationship, and may or may not be the same person as the client. The beneficiary's trust beneficial right can be transferred and inherited according to law.
Knowing these trust terms, are you no longer so unfamiliar with trust financing? Financial management is not a simple matter. It is essential to learn more financial management knowledge.