Trusts have long played an important role in South African wealth and succession planning.
Proposed legislative changes that could reshape aspects of how trusts are governed and administered, make it important for trustees, beneficiaries and families to understand what may lie ahead.
After decades of trusts being regulated by the Trust Property Control Act 57 of 1988 (TPCA), the draft Regulation of Trusts Bill 2026 (Bill) signals a move towards greater transparency, accountability and regulatory oversight.
Public comments closed on 11 September 2026 and the Bill must still proceed through Parliament before it can become law, with no implementation date as yet been announced. The table below outlines the proposed changes in how trusts will be governed and administered.
At a glance: Current position vs proposed position
| Area | Current position (TPCA) | Proposed position (Bill) |
|---|---|---|
| Annual reporting | No general annual return requirement | Annual returns and prescribed fees would be required |
| Financial statements | Not generally required by law | Annual financial statements, subject to exemptions |
| Beneficial ownership | Existing reporting obligations apply | Beneficial ownership information would need to be maintained, lodged and updated within 10 days of changes |
| Trustee resignation | Governed by the trust deed and applicable legal requirements | Resignation would only take effect once acknowledged by the Master |
| Master’s oversight | Primarily focussed on registration and trustee appointments | Expanded powers to request information, investigate trusts, issue compliance notices and impose fines |
| Record keeping | General fiduciary and legal obligations | More detailed statutory record-keeping requirements |
| Trustee accountability | Primarily court-based remedies | Administrative fines and enhanced enforcement powers |
| Electronic signatures | No express recognition of electronic signatures in the TPCA. Paper-based execution remains the norm in many trust administration processes. | Electronic signatures are expressly recognised, enabling trustees to sign trust-related documents electronically in line with the Electronic Communications and Transactions Act (ECTA). |
So, what could this mean for trustees, beneficiaries and families using trusts as part of their wealth and succession planning?
What does this mean for trustees
- The proposed position places emphasis on greater accountability and active regulatory oversight.
- Trustees could face additional reporting, record-keeping and compliance obligations, with the Master given broader powers to monitor and enforce compliance.
- For professional trustees, much of this may not be unfamiliar. Strong governance, proper records, regular reviews and clear decision-making processes are already central to well-administered trusts.
What does this mean for beneficiaries
- Greater transparency and oversight could provide beneficiaries with greater visibility into how trusts are administered and how trust assets are governed.
Our view
Citadel Fiduciary supports the objectives of the proposed changes and has actively participated in the public consultation process by submitting comments.
As many of the proposed requirements are already reflected in our governance, compliance and record-keeping practices, we do not expect the proposed change, in itself, to materially change the administration of our client trusts.
The proposed Bill changes the expectations around how trusts are governed and administered. It does not fundamentally change why trusts exist. Trusts remain effective tools for estate planning and succession planning.
While the proposed Bill seeks to strengthen trust governance, its success will depend on effective implementation:
- The Master’s Office is expected to play an enhanced role, making adequate resourcing, technology and operational support important enablers of the Bill’s success.
- If these foundations are established, the Bill could be implemented successfully and support the efficient administration of trusts and minimise the risk of administrative backlogs.
Citadel Fiduciary will continue to monitor the legislative process and keep clients informed as the Bill progresses.