Abstract: Split-interest trust is a potential institutional tool for accelerating the third distribution process in China and promoting the realization of common prosperity. As a mixed-purpose trust, it allows the settlor to combine private and charitable purposes in the trust, which, on the one hand, responds to the evolutionary path of the philanthropic view under the balanced approach and, on the other hand, can make up for the lack of incentives due to the constraints on the full public welfare of traditional charitable trusts. Broadly speaking, split-interest trust includes the four modes of ‘fusion, parallel, successive and nested’. In the institutional construction of split-interest trust, it is necessary to focus on overcoming the three major obstacles of trust effectiveness, system positioning and tax risk. Specifically, in the front-end establishment stage, based on the theory of interpretation, the certainty of the trust property should be reinterpreted by functionalism; in the middle-end qualitative stage, an independent type of trust and the ‘principle-exception’ model should be constructed; in the back-end of the stage of taxation, the potential tax risks should be prevented by optimizing the tax calculation method and limiting the variants of trust structure. Although the amended Charity Law in 2023 does not explicitly include split-interest trust, in terms of practice, it is possible to consider taking the lead in filing independent records and applying the rules on the successive and nested-model split interest trust in developed provinces in the form of pilots, and then gradually promote and incorporate them into the legal system after the experience has matured.