Core Viewpoint - The recent cases of family trusts being pierced by courts in Jiangsu and Shandong have raised significant concerns about the integrity and effectiveness of family trusts as a wealth management tool for high-net-worth individuals in China [1][2][4]. Group 1: Legal and Financial Implications - The family trust in Jiangsu was subjected to forced execution due to the involvement of the trustee in bribery and contract fraud, leading to the seizure of over 40 million yuan in trust assets [1]. - The Shandong case involved the recovery of over 10 million yuan in illegal earnings from a family trust linked to illegal medical practices, further undermining the perceived independence of family trusts [1]. - The legal framework, including the Trust Law, stipulates that trusts must be established with legally owned assets, rendering trusts set up with illegal funds invalid [3]. Group 2: Industry Perspectives - Despite the negative incidents, there is an optimistic view regarding the future of family trusts, suggesting that misunderstandings and misapplications may be at play in these cases [2]. - The industry recognizes the need for clearer legal interpretations and practices to prevent the unjust piercing of trusts, advocating for a more thorough examination of trust relationships in judicial processes [3]. - The potential misuse of family trusts for debt evasion should not overshadow their legitimate functions, emphasizing the importance of compliance and legal sourcing of funds when establishing trusts [4].