With testamentary trusts written into the Chinese Civil Code, the needs for family wealth succession and planning have been growing，and more and more trust assets are located across the borders, it is anticipated that there will be foreign-related disputes arising out of family trusts and that conflict of laws is inevitable. The current Law on Application of Laws on Civil Juristic Relations with Foreign Elements has a provision providing for the rules regarding determination of the governing law on trusts with foreign elements; however, the provision is not flawless. First, it is not always possible for the parties of a family trust to choose the governing law through agreement among them since a trust can be created through the settlor’s unilateral act. Second, where the parties’ rights of choice-of-law are limitless, their choice may be incompatible with the current laws. Third, the default rule provided therein may lead to a conflict with the current law, and may also bring uncertainties to the parties, which will adversely affect the development of the trust system. Therefore, it is suggested that the Hague Convention and the common law be consulted with to improve the Chinese law on application of trust laws; specifically, the parties’ autonomy with appropriate limits shall be adopted along with the most significant relationship principle, and dépe?age should be allowed. It is also suggested that the Trust Law be revised and that China actively participate in negotiations for international conventions on conflict of trust laws, and join them when time is ripe.