What is a trust? What are the characteristics of trust?

Trust is a way of financial management, a special property management system and legal behavior, and also a financial system; It constitutes a modern financial system with banks, insurance and securities.

Trust business is a legal act based on credit, which generally involves three parties, namely, the trustor who has invested in credit, the trusted trustee and the beneficiary who benefits from others.

Trust business can grasp the basic characteristics of trust from the following aspects:

1, the trustor's trust in the trustee. This is the premise of establishing trust relationship. One is the trust in the trustee's integrity, and the other is the trust in the trustee's supporting ability.

2. The transfer of trust property and property rights is the basis for establishing a trust.

Trust is a legal relationship centered on trust property. Without trust property, the trust relationship will lose its foundation of existence. Therefore, when establishing a trust, the client must transfer the property right to the trustee, which is the fundamental difference between the trust system and other property systems.

Property right refers to the right based on property interests. Except for the right of identity, reputation and name, any other right or property right that can be valued by money, such as property right, creditor's right, patent right, trademark right and copyright, can be used as trust property.

3. Among the three parties of the trust relationship and interest management, the trustee takes his own name as the beneficiary, and disposing of the trust property is two important characteristics of the trust.

The trust relationship is multifaceted, including the principal, the trustee and the beneficiary, which is a characteristic of the trust. Moreover, the trustee manages and disposes the trust property in his own name, which is another important feature of the trust. This trust relationship embodies five meanings:

① After entrusting the property to the trustee, the trustee has no direct control over the trust property;

(2) The trustee manages the trust property entirely in his own name;

(3) The trustee must manage and dispose of the trust property according to the wishes of the trustor;

4. This will is agreed in the trust contract in advance, and it is also the basis for the trustee to manage and dispose of the trust property;

⑤ The trustee must be the beneficiary's interest management and dispose of the trust property, not for the trustee's own interests, nor for the interests of other third parties.

4. Trust is a property management system for others to manage, use and dispose of property.

Providing extensive and effective services for property owners is the primary function and sole service purpose of trust, which embodies the functions of operating, using, disposing and managing property in its business and has become an important part of modern financial industry. There are both connections and differences with banks, insurance and securities.

Ping An Bank sells different trust products to meet customers' investment needs. For details, please visit Ping An Pocket Bank APP- Home-More-Investment and Financial Management-Private Equity, or consult the exclusive financial manager.

Reminder: The above explanation is for reference only. As the recommendation institution of the trust plan, the Bank only undertakes the responsibility of recommending business and does not undertake the investment risk of the trust plan.

It is recommended that you know the basic information such as capital investment and risk types of wealth management products in detail before buying, and decide to buy wealth management products that match your risk tolerance and asset management needs.

Response time: 2021-1-11. Please refer to the latest business changes announced by Ping An Bank in official website.