Regulation of Trusts Bill 2026: What Trustees Need to Know

The Trustee’s Role Is Changing

For many South Africans, a trust exists to protect and preserve wealth for future generations. But establishing a trust is only the beginning – it must be properly administered throughout its life, and the trustee sits at the centre of that responsibility.

South Africa’s proposed Regulation of Trusts Bill, 2026 could significantly change what is expected of trustees. Published for public comment on 7 August 2026, the Bill proposes to replace the Trust Property Control Act with a more comprehensive framework, introducing greater requirements around governance, transparency, record-keeping, beneficial ownership and accountability. The Bill is not yet law and may still change. However, it gives trustees a useful opportunity to review their trusts now.

A New Era of Trust Accountability

Trusts are valued for the flexibility they offer in managing family wealth – but that flexibility carries responsibility. A trustee does not own trust assets personally; they administer them in line with the trust deed, beneficiaries’ interests and the law. The proposed legislation reinforces this: trustees will need to show the trust is not just legally established but actively and properly administered, with the right documents, accurate records, separated assets, clear beneficial ownership, and demonstrable decision-making.

What Could Change for Trustees?

Final requirements depend on the legislation as enacted and regulations still to come, but key areas include:

1. Authority to act – Trustees may only act once authorised in writing by the Master. Appointments, resignations and changes must be properly documented and reflected in the Master’s records – appointment under a trust deed or resolution alone won’t be enough.
2. Beneficial ownership – Trustees must establish, record and lodge beneficial ownership information with the Master, and update it within 10 days of any change. This becomes an ongoing duty, not a once-off exercise.
3. Annual financial statements – Trustees must ensure annual financial statements are prepared, subject to limited exemptions. If the Master requests them, they must generally be provided within one month.
4. Annual returns – Trustees will need to submit an annual return to the Master, with details and fees to be prescribed by regulation – adding to the annual administration cycle.
5. Separation of trust assets – Trust property must be clearly identifiable and, where appropriate, registered as such, including bank accounts and investments.
6. Separation of trust money – Money received in a trustee capacity must be deposited into a separate trust account in the trust’s name, reinforcing the legal separation between trust and trustee.
7. Better record-keeping – Trustees must retain key documents, including the trust deed and amendments, records of the founder’s donation, asset/liability records, income and expenses, resolutions, contracts, accounting records, financial statements, appointment/removal documents, and records of transactions involving trust property – generally for the trustee’s term plus five years.
8. Standard of care – Trustees must act with the care, diligence and skill expected of someone managing another’s affairs, factoring in their own expertise (especially relevant for professional trustees). Material decisions must be properly considered, authorised and recorded.
9. Investment decisions – Trustees must consider factors such as trust objectives, beneficiaries’ needs, diversification, risk, capital preservation and growth, income, liquidity, duration, tax, inflation, costs and overall strategy.
10. Greater Master oversight – The Master gains stronger powers to demand accounting and information, backed by compliance notices and administrative fines. Serious breaches may carry criminal consequences.

What Should Trustees Do Now?

The Bill isn’t yet law, so immediate implementation isn’t required … but it’s a useful trust health check. Consider these ten steps:

1. Find your trust deed – original plus all amendments.
2. Check your Letter of Authority – confirm current trustees are properly authorised.
3. Review beneficial ownership – ensure records are accurate and current.
4. Review trust assets – confirm an up-to-date asset/liability list, correctly recorded as trust property.
5. Review your bank account – confirm funds are held separately in the trust’s name.
6. Review financial records – ensure income, expenses, investments, loans and distributions are properly recorded.
7. Review trustee resolutions – ensure material decisions are documented.
8. Review investments – confirm the strategy still suits the trust’s objectives and beneficiaries.
9. Establish an annual review – review regularly, not just when something happens.
10. Keep everything together – maintain a complete, organised trust file.

The Trustee’s New Question

The question is no longer just “Is my trust valid?” but “Is my trust properly governed, administered, and able to demonstrate compliance?” A trust can have a valid deed yet still have real administration gaps – outdated trustee or beneficial ownership records, missing resolutions, unrecorded loans, or weak financial records. These are exactly the areas trustees should review now.

A Proactive Approach Is Better Than a Reactive One

The Bill may still change, and some requirements await regulations – but the direction is clear: more transparency, more accountability, more active oversight. Trustees with strong governance already in place may find these requirements simply formalise existing practice. For others, this is a timely opportunity to strengthen the trust before the new framework takes effect.

Is Your Trust Ready?

At Carrick Consult, effective trust administration means more than keeping documents in a file – it means ensuring the trust still fulfils its purpose, trustees understand their duties, and the administration can withstand scrutiny. A proactive review can identify gaps and set out a clear action plan.

Your trust was created to protect the future. Make sure it’s properly administered today.

Speak to your Private Wealth Manager today, or contact Carrick Consult to arrange a trust review.

Carrick Consult Mastering the Art of Planning for Tomorrow

Important notice: This article is for general information only and does not constitute legal, tax or financial advice. The Regulation of Trusts Bill, 2026 is proposed legislation, not yet in force, and may be amended before enactment. Certain requirements referred to above remain subject to regulations not yet published.