FAQ
The detailed comparison table between civil law (continental law) and common law systems regarding trusts
Legal Basis and Foundation
Based on Roman law tradition, laws are derived from codes and statutes.
Roles and Names
Beneficiary and trustee.
Purpose and Operation
More formally, trustees must adhere to legal provisions, and regulatory oversight may be required.
Judicial Procedures and Interpretation
Less influenced by individual precedents, judges tend to interpret laws more explicitly.
Regulation
More likely to be subject to regulatory oversight, the rights and duties of trustees are more clearly defined.
Diversity of Trust Purposes
More limited, purposes and usage are subject to stricter constraints.
Influence of Laws and Norms
More provisions in legal texts, judges’ influence through precedents is limited.
Variations in National Practices
Differences may exist among European continental countries, but the overall approach is closer.
Legal Basis and Foundation
Based on case law, laws are derived from court precedents and decisions.
Roles and Names
Beneficiary and trustee.
Purpose and Operation
More flexible, trustees have greater autonomy guided by court precedents.
Judicial Procedures and Interpretation
Precedent law plays a significant role, judges’ interpretations and precedents affect new cases.
Regulation
Less regulatory oversight, trustees have more freedom within the framework of court precedents.
Diversity of Trust Purposes
More versatile, purposes can be diverse to cater to parties’ needs.
Influence of Laws and Norms
Judges’ precedents have a stronger influence on legal interpretation and formulation.
Variations in National Practices
Variations can be significant among different common law countries.
