Article 6 A trust shall be created for lawful trust purposes.

Article 7 To create a trust, there must be definite property under the trust, and such property must be the property lawfully owned by the settler.

For purposes of this Law, the property includes the lawful property right.

Article 8 The creation of a trust shall take the form of writing.

The form of writing shall consist of trust contracts, testament, or other documents specified by laws and administrative regulations.

Where a trust is created in the form of trust contract, the trust shall be deemed created when the said contract is signed. Where a trust is created in any other form of writing, the trust is deemed created when the trustee accepts the trust.

Article 9 The following items shall be stated clearly in the written documents required for the creation of a trust:

1. purposes of the trust;
2. the names and addresses of the settler and trustee;
3. the beneficiary or beneficiaries;
4. the scope, types and status of the assets under trust; and
5. the form and means through which the beneficiary gains benefits from the trust.

In addition to the items mentioned above, the period of the trust, the methods for the administration of the property under trust, remuneration payable to the trustee, manner for appointing another trustee, the cause for termination of the trust, etc. may be stated clearly.

Article 10 Where laws or administrative regulations stipulate that registration formalities shall be gone through for the creation of a trust, such formalities shall be gone through accordingly.

Anyone who fails to go through the registration formalities prescribed in the preceding paragraph shall go through the formalities as required; otherwise, the trust shall have no effect.

Article 11 Under any one of the following circumstances the trust shall be invalid:

1. The purposes of the trust constitute a violation of laws or administrative regulations, or impair public interest.
2. The property under trust cannot be fixed;
3. The settler creates the trust with unlawful property or with property which, according to this law, may not be used for creating a trust;
4. The trust is created specially for the purpose of taking legal actions or for recovering debts;
5. The beneficiary or beneficiaries cannot be determined; and
6. Other circumstances stipulated in laws or administrative regulations.

Article 12 Where a settler creates a trust to the detriment of the interest his creditors, the creditors shall have the right to apply to the People's Court for revoking the trust.

Where the People's Court revokes the trust according to the provisions of the preceding paragraph, the benefits already derived from the trust by the bona tide trustee shall not be affected.

The right of application prescribed in the first paragraph of this Article shall be terminated if it is not exercised within one year beginning from the date the creditor knows of or should know of the reasons for the revocation of the trust.

Article 13 For the creation of a testamentary trust, the provisions in the Law of Succession concerning testamentary succession shall be observed.

Where the person designated in a testament refuses or is unable to act as a trustee, the beneficiary shall appoint another person as the trustee; where the beneficiary is a person who has no civil capacity or limited capacity for civil conduct, his guardian shall appoint the trustee on his behalf. If there are other provisions in the testamentary instrument for governing the appointment of a trustee such provisions shall prevail.