Article: The Past and Future of Japanese Trust Law

Hiroyuki Watanabe (University College London – Faculty of Laws; Waseda University) recently published, The Past and Future of Japanese Trust Law, 2025. Provided below is an Abstract:

2022 marked the 100th anniversary of the enactment of Japan’s Trust Act and Trust Business Act. Probably it was the first country in civil law jurisdictions to introduce trust law. However, this fact is not widely known2. Japan’s trust law has developed uniquely, with trust banks playing a central role, and the background to Japan’s early introduction of trust law and stable development can be attributed to its unique regulatory structure (See, Part Ⅰ, Chapters 1and 2). And in terms of commercial trusts, Japan is said to have the second most advanced development after the United States. While various trust schemes are being utilised, some unique Japanese trust schemes have also developed (See, Id, Chapters 3-5). Constructive trusts (Chapter 7) and charitable trusts (Chapter 8) have also developed in ways that are unique to Japan. In addition, the recent rapid development of family trusts and the various issues that have arisen as a result are also phenomena that should be noted (Chapter 6).

Because of the provision of the Japanese Trust Act for the independence of the trust property, combined with the practical attitude of the Japanese legal practitioners, there has been, as a general tendency, not much debate on the basic theory of trusts. However, if you read the Shinomiya’s unique theory of trust law (see Part Ⅱ) in the light of the cutting-edge discussions that have taken place in the Western world in recent years, you may be surprised at its advanced nature and excellence.

Until now, the reality of Japanese trust law and practice has unfortunately only been partially understood outside Japan. This is due to a lack of effort on the part of Japanese scholars and practitioners, including myself. I hope that this paper will help the reader to understand the full picture of trusts in Japan and to discuss it from an international perspective.