The highest priority over taxation on personal trusts is to establish a distinction between revocable trusts and irrevocable trusts. A beneficiary at the time of creating a trust, however, is not necessarily the beneficiary even in the future. In this regard, it is possible to make good use of personal trusts in Japan, and prevent tax evasion. It seems appropriate that the tax on a trust estate at the time of creating the trust should be borne by the trust or entity by itself, otherwise on the settler by himself. In addition, the beneficiaries should be taxed because they actually obtain the benefit. Most of the relationships between the settler and beneficiary in a personal trust agreement are family relationships. What is more, most taxation on trust beneficiaries and on trusts without beneficiaries is supposed to be regarded as personal trusts settled for personal property management. Thus we should not include taxation on trusts without beneficiaries among taxation on corporation trusts, and unify it among taxation of the beneficiaries of trusts. That is to say, there should be a division between taxation on trusts with beneficiaries and taxation on trusts without beneficiaries.