A developed understanding of the beneficiary’s interest in commercial trusts through a comparative study of Chinese law

Abstract

Trusts have existed for centuries, while societies and economies have developed in the intervening years. This requires renovations, or new judicial interpretations, of what a trust is in order to adapt it to modern circumstances. Based on a discussion about the theoretical basis for the research – the new role of trusts in a commercial context and the essence of the trust – the author provides a developed understanding of the beneficiary’s interest to adjust the traditional trust notions to meet the demands of commercial practices. She argues that, based on a case study of Chinese law, a beneficiary’s right can be explained as a special personal claim consisting of three parts: the main claim (personal claims), appurtenant rights (rights of supervision) and security rights (rights of revocation). The theory of beneficiary’s special personal claim provides a more unified and comprehensive understanding of the nature of the beneficiary’s interest, particularly in newly developed commercial trusts.