Core Viewpoint - The establishment of a special needs trust system in China is crucial for improving the social security framework for disabled individuals and other special groups, aligning with national modernization goals and enhancing the quality of life for these populations [2][5][10]. Group 1: Importance of Special Needs Trust - Special needs trusts are designed to meet the living security needs of special groups, including the disabled and elderly with cognitive impairments [3]. - The trust system offers long-term care, asset protection, efficient management, and flexible mechanisms that align with the needs of vulnerable populations [4]. - The introduction of a special needs trust mechanism provides a new solution for the living security of millions of disabled individuals in China [4][6]. Group 2: Legal and Institutional Framework - The development of a special needs trust system is a significant step towards enhancing China's social security system and legal framework [5]. - It is essential to establish a legal structure that supports the special needs trust, ensuring it is not merely a financial product but a comprehensive legal mechanism [4][5]. - The system aims to integrate government, family, and social resources to provide dignified living conditions for disabled individuals [6][10]. Group 3: Challenges and Recommendations - The special needs trust sector faces challenges due to a disconnect between demand and supply, with families needing support while services remain uncoordinated [6][8]. - To enhance the effectiveness of the trust system, it is recommended to prioritize basic needs before addressing personalized requirements, ensuring a solid foundation for the system [8][10]. - Collaboration among policymakers, beneficiaries, and scholars is necessary to align the supply side with actual needs, fostering a more responsive and effective trust system [10][11].

Core Viewpoint - The introduction of the "special needs trust" concept in China aims to provide a structured solution for the care of vulnerable groups, including disabled individuals and the elderly, through a legal and financial framework [1][2][3]. Group 1: Special Needs Trust Overview - The "special needs trust" is defined as a trust established to meet the specific living needs of designated beneficiaries, primarily focusing on individuals with disabilities or elderly individuals requiring care [1][2]. - As of November 2024, there are approximately 35 million disabled elderly individuals in China, projected to rise to 46 million by 2035, highlighting the urgent need for sustainable care solutions [2]. - The trust mechanism allows families to institutionalize care responsibilities, ensuring long-term support for special needs individuals, thereby enhancing their quality of life and dignity [2][3]. Group 2: Legal and Institutional Framework - The establishment of the special needs trust is aligned with various legal frameworks, including the Civil Code and Trust Law, emphasizing the need for a legal basis to ensure sustainable support for special needs individuals [3][4]. - There is a call for collaborative efforts among various stakeholders to enhance the legal and institutional framework surrounding special needs trusts, ensuring effective governance and oversight [4][5]. Group 3: Challenges and Recommendations - Despite the promising outlook for special needs trusts, challenges remain, including high tax burdens and the need for improved regulatory frameworks [4][6]. - Recommendations include adopting tax incentives for special needs trusts, similar to practices in other countries, to alleviate financial burdens on families [6][7]. - The importance of governance and supervision in the establishment and management of special needs trusts is emphasized to prevent potential conflicts and ensure the protection of beneficiaries' interests [5][6].