Proposed Trust law could raise the bar for governance and accountability

South Africans who use trusts as part of their wealth and succession planning could face a more formalised governance and compliance environment if the proposed Regulation of Trusts Bill of 2026 becomes law. The draft bill seeks to modernise South Africa’s (SA) trust framework by replacing the Trust Property Control Act 57 of 1988 and introducing stronger accountability, compliance and oversight measures. Public comments on the Bill closed on 11 September 2026.

According to Mbonisi Ndlovu, Partner at Citadel Fiduciary, the proposed bill signals a shift in how trusts could be governed and administered. “Trusts have long played an important role in SA estate and succession planning. The proposed legislation does not fundamentally change why trusts exist, but it could raise the standard expected of trustees in administering them,” says Ndlovu.

Among the proposed changes are annual return requirements and prescribed fees, annual financial statements subject to certain exemptions, more detailed record-keeping obligations and tighter requirements around beneficial ownership information.

The bill also proposes expanding the powers of the Master of the High Court to request information, investigate trusts, issue compliance notices and impose fines. Trustee resignations would only take effect once acknowledged by the Master.

Source: Citadel Fiduciary

What this could mean for trustees

Ndlovu says trustees could face additional reporting, record-keeping and compliance responsibilities under the proposed framework. “For professional trustees, much of this should not be unfamiliar. Strong governance, proper records, regular reviews and clear decision-making processes are already central to the effective administration of a trust,” he says.

Citadel Fiduciary supports the objectives of the proposed changes and participated in the public consultation process by submitting comments on the bill. “Many of the proposed requirements are already reflected in our governance, compliance and record-keeping practices, so we do not expect the changes, in themselves, to materially alter the administration of our client trusts,” says Ndlovu.

Greater transparency for beneficiaries

For beneficiaries, the proposed framework could provide greater visibility into how trusts are administered and how trust assets are governed. Ndlovu says this could strengthen confidence in trust structures, particularly where beneficiaries have historically had limited insight into their administration.

“Greater transparency can help beneficiaries better understand how a trust is being managed and how decisions relating to trust assets are being made,” he says. He stresses, however, that the underlying purpose of trusts remains unchanged. “Trusts remain effective tools for estate planning and succession planning. The proposed legislation is primarily focussed on how they are governed and administered,” says Ndlovu.

Implementation will be critical

Ndlovu says the success of the proposed framework will ultimately depend on effective implementation. The Master’s Office is expected to play an enhanced role under the bill, making adequate resourcing, technology and operational support important to the efficient functioning of the new system.

“If these foundations are in place, the framework could support more efficient trust administration while reducing the risk of administrative backlogs,” he says. With the proposed Regulation of Trusts Bill still progressing through the legislative process, Ndlovu says trustees and beneficiaries should continue monitoring developments before making assumptions about the final requirements. “Trustees do not need to wait for legislation to prioritise sound governance. Proper records, regular reviews and clear decision-making already form the foundation of responsible trust administration,” he concludes.