For the purposes of this Law, the term "trust" refers to the legal relationship in which the settlor transfers or disposes of a right of property and causes the trustee to administer or dispose of the trust property according to the stated purposes of the trust for the benefit of a beneficiary or for a specified purpose.

Except where the law provides otherwise, a trust shall be established by a contract or a will.

Except where the settlor otherwise has reservations with regard to the trust act, the settlor who is not the beneficiary shall neither change the beneficiary or terminate the trust, nor dispose of the beneficiary's rights once the trust has been duly established; however such shall not apply if the settlor has obtained the approval of the beneficiary.

No trust in respect of a property right that requires trust registration shall be valid against third parties unless trust registration of the right has been duly completed.
If securities are the subject of a trust property, then the trust created shall not be valid against third parties unless the particular stock certificates or other documentary certificates of rights specify in accordance with the regulations of the industry's regulatory authority that they appertain to the trust property.
No trust established in respect of a stock certificate or corporate bond shall be valid against the issuing company unless the latter has been advised of the establishment.

A trust act shall be null and void if
（1）the trust is established for any purpose against the mandatory or prohibitive regulations;
（2）the trust is established for any purpose contrary to the public order or good morals;
（3）the trust is established mainly for serving administrative appeal or litigation purposes; or
（4）the trust designates a beneficiary prohibited by law from holding any specific property rights.

A settlor's creditor whose rights are impaired by a trust act shall have the right to apply to the court for the revocation of the trust.
The revocation provided in the preceding paragraph shall in no event operate to adversely affect the rights already acquired by the beneficiary; provided that such shall not apply if the payment in respect of the rights has not become due or if rights are acquired by the beneficiary who knows or has reason to know at the time of the acquisition that the acquisition will be detrimental to the creditor's claims.
A trust act shall be assumed to be detrimental to a claim if the settlor or his estate is adjudicated bankrupt within six months of the establishment of the trust.

The right to apply for revocation of a trust, provided in the preceding article, shall extinguish if it is not exercised within one year of the date on which the creditor becomes aware of the existence of the cause of the revocation. The same shall apply if it is not exercised within ten years of the creation of the trust.

A trust relation shall not be extinguished because the settlor or trustee dies, becomes bankrupt or loses his legal capacity unless the trust act provides otherwise.
The provisions of the preceding paragraph shall govern if the settlor or trustee is a legal entity and ceases to be an on-going concern on account of dissolution or cancellation of company registration.