Recently, Tahota had accepted a commission toprovide Sichuan Trust Co., Ltd. (hereinafter referred to as Sichuan Trust) withlegal services. Its Fairview Future Charitable Trust Plan had been successfullyregistered in Chengdu Civil Affairs Bureau on October 12, 2016. Thus the first charitabletrust in Sichuan Province was established.

On September 1st, 2016, the People’s Republic of Charity Lawwasformally implemented after ten years of research and drafting. As expresslystipulated in the charity law, charitable trust is a public trust, and it isdefined as the action that the charter entrusts the trustee of his/her/itsproperty for charitable purposes, and trustee, in accordance with the wishes ofthe client, manages and disposes the charity or carries out charitableactivities in the name of the trustee. From the development of domesticcharitable trust, we can see that the charity trust system was clearly stated in the TrustLaw of 2001 and there is a special chapter in the People’s Republic ofCharity Law that gives detailed regulations on charity trust. This meansimplementation of the charity trust system is a very important decision-making forthe development of national public charity. Although thepromulgation of Charity Law has provided further legal basis for thecharitable trust, specific rules and tax incentives arestill not sound. Since there is no example in former cases, and theestablishment of charity trust emphasizes legal basis and law compliance, atthis phrase, many trust companies and charitable organizations are still inhesitation. As a result, there is only about 10 charitable trusts in existafter the promulgation of Charity Law.

Tahota lawyer Yi Si and Xie Yunli, members of seniorpartner Han Yingmei’s team, provided full legal services for this charitytrust. They were the special legal advisor of the charity trust. In addition,Tahota was entrusted by Sichuan Trust to be the supervisor of the charitabletrust. It was assigned to supervise whether the trustee used the money correctlyand legally. After acceptance of the commission, Tahota’s lawyers, with their highspecialty and through constant explorative discussion, and in accordance withthe actual situation of Sichuan Trust, provided full legal advices for theestablishment of this charity trust and also put forward targeted specificationsand optimization suggestions for this charitable trust. On this basis, theyalso drafted a full set of legal documents and issued legal opinions, as wellas actively promoted the charity trust to be successfully registered in theCivil Affairs Bureau of Chengdu. The Fairview Future Charitable Trust Plan is aperpetual charitable trust that aims to put clients’ contributions intocharitable projects that will help children (especially for left-behindchildren) to finish their study, and give them medical care, or help thedisables and sick persons. The amount of left-behind children in our province isthe highest in the country. Children are the future of the motherland, so everychild deserves a beautiful future.

Charitable trust has a unique advantage in face of largedonations from enterprises and high net worth individuals, and also in investmentand management, account management and information disclosure of charityproperty. In the structure of the trust system, there contains charitablegenes, and they can make the wealth to create its due social value and to promotesocial welfare. With the prosperity and mightiness of the country, thelevel of spiritual civilization of our people will be higher and higher, andthe will of people to be engaged in charity activities will grow stronger andstronger, thus there will be broad space for the development of charitabletrust. Tahota lawyers relying on their professional knowledge will furtherconduct extensive and in-depth cooperation with trust companies on charitabletrust projects, and will actively fulfill their social responsibility and maketheir contributions to philanthropy as well as promote the healthy developmentof public welfare charity.