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2026 Trust Update: Regulation of Trusts Bill, 2026

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Overview

South African trusts are entering a new era. The Regulation of Trusts Bill, 2026 repeals the Trust Property Control Act, 1988, replacing almost four decades of light-touch oversight with a demanding regulatory regime. Trusts are not disappearing, but they are becoming far more heavily regulated.

Under the Regulation of Trusts Bill, every trust files an annual return and pays a prescribed fee, most trusts prepare annual financial statements, and changes in beneficial ownership must be lodged with the Master within 10 days. Trustees who fall short face administrative fines that they must pay personally, not from trust property. The most serious failures carry criminal penalties of up to R10 million or five years’ imprisonment.

This video offers trustees, fiduciary and tax practitioners, accountants, attorneys, founders and beneficiaries a practical analysis of the Bill and a clear roadmap to compliance. It covers reviewing trust deeds and trustee appointments, verifying beneficial ownership information, strengthening governance and record-keeping, and deciding the future of dormant trusts. Informal trust administration is drawing to a close, and trustees whose affairs are not in order are exposed.

Video Content

Changes Affecting Trustees

• Authorisation by the Master, security, and the new offence of acting without authority
• The Master’s power to appoint an independent trustee, and when it applies
• Expanded disqualification grounds and the public register of disqualified persons
• Resignation, which takes effect only once the Master acknowledges it in writing
• The statutory standard of care, diligence and skill, and the new prudent-investor duty
• Amendments to trust deeds, which have no effect until lodged and acknowledged
• Statutory requirements for creating a valid trust, including the rule that a sole trustee may not be the sole beneficiary

Beneficial Ownership and Transparency

• The beneficial ownership regime in force since 2023, and what the Bill changes
• The wider definition of beneficial owner, which now includes identifiable beneficiaries not named in the trust deed
• The 10-day update and lodgement requirements
• Who may access beneficial ownership information, and how PAIA and POPIA apply
• The Chief Master’s risk assessment and exemptions for low-risk trusts
• Alignment with FICA obligations and with beneficial ownership disclosures to CIPC and SARS

Annual Compliance and Reporting Requirements

• The annual return and the first-return deadline for existing trusts
• Annual financial statements and the threshold-based exemption
• Prescribed fees
• Record-keeping obligations and the five-year retention period
• Separate trust accounts and identification of trust property
• Practical considerations for dormant and family trusts

Expanded Powers of the Master

• Accounting, investigation, and who bears the costs of an investigation
• Compliance notices
• Administrative fines
• Appeal to the Director-General
• Appointment and removal of trustees, including the new removal grounds
• Termination of trusts by removal from the register
• Recourse against decisions of the Master

Penalties and Trustee Exposure

• Administrative fines that trustees must pay personally
• Criminal offences, with penalties of up to R10 million or five years’ imprisonment
• Personal liability of trustees, including liability that continues after resignation or removal
• Invalidity of clauses that exempt or indemnify trustees
• Practical risk mitigation strategies

Tax and Estate Planning Implications

• Interaction between trust law and tax compliance
• SARS reporting considerations, including how annual financial statements align with the trust income tax return (ITR12T)
• Beneficial ownership disclosures and tax administration
• Impact on existing trust structures
• Trust reviews before the Bill takes effect

Trust Compliance Roadmap: Preparing for Implementation

• Practical steps trustees should take now
• Updating trust records and trust deeds before commencement
• Verifying, and where necessary reconstructing, beneficial ownership information
• Developing a trust compliance roadmap

Competencies Developed

Upon completion of this video, practitioners are able to:

Technical Competencies

• Understand the key provisions of the proposed Regulation of Trusts Bill, 2026.
• Identify the new compliance obligations applicable to trusts and trustees.
• Interpret beneficial ownership reporting requirements and their practical application.
• Evaluate the impact of the Bill on existing trust structures and estate planning arrangements.
• Understand the interaction between trust regulation, tax administration and anti-money laundering legislation.

Professional Competencies

• Assess trust governance risks arising from the proposed legislative changes.
• Advise trustees, founders and beneficiaries on legislative readiness.
• Develop practical compliance strategies for trust administration.
• Apply sound professional judgement when evaluating trust governance and reporting obligations.
• Communicate legislative developments and compliance requirements to clients effectively.

Ethical and Regulatory Competencies

• Promote transparency and accountability in trust administration.
• Understand trustees’ fiduciary duties within an increasingly regulated environment.
• Recognise regulatory risks associated with beneficial ownership reporting and trustee non-compliance.
• Apply governance principles consistent with evolving regulatory and anti-money laundering standards.