In short: On 7 August 2026 the Minister of Justice published the draft Regulation of Trusts Bill, 2026 for public comment in Government Gazette No. 55166 (opens in a new tab). It would scrap the Trust Property Control Act of 1988 and replace it with a new Act that gives the Master far more oversight, and far more teeth. The Bill is still a draft, not law, and has no commencement date yet. This article is current as at 25 October 2026.
If you have a family trust, the message is simple: the days of a trust deed sitting in a drawer are ending. Here is what the Bill says, what experts flagged during the comment period, and what to watch for next.
Where the Bill stands today
• 29 July 2026: Cabinet approves the draft for public consultation. • 7 August 2026: Published for comment in Government Gazette No. 55166, Notice 4088 (opens in a new tab). • 11 September 2026: Public comment period closes (PMG call for comment (opens in a new tab)). • Next: the Department of Justice considers the comments, then introduces a final Bill in Parliament.
As at 25 October 2026 we have not seen the Bill introduced in Parliament. Once it is passed and signed, it only comes into force on a date the President proclaims in the Gazette (clause 39).
Draft Regulation of Trusts Bill, 2026, published 7 August 2026
Reference: Department of Justice and Constitutional Development
The key changes for family trusts
The Bill turns trust administration from a once-off registration into an ongoing annual duty. These are the changes most family trusts will feel.
• Annual return (clause 21): every trust files an annual return with the Master, with a fee. Existing trusts file their first one within 6 months of commencement. • Annual financial statements (clause 20): trustees prepare statements every year, unless the trust's money in and out stays under thresholds the Minister will set later. The Master can ask for them on one month's notice. • Beneficial ownership (clause 23): trustees keep a register of who owns, benefits from or controls the trust, lodge it with the Master, and report changes within 10 days. • Independent trustee (clause 10): the Master may appoint one if all trustees are beneficiaries, all are related, and the trust does business with third parties. • Deed amendments (clause 6): an amendment only works once the Master acknowledges it. Acting on it before then is invalid, and trustees are personally liable for the loss. • Resignation (clause 25): a resignation only takes effect when the Master acknowledges it. Former trustees stay liable for breaches during their term. • Standard of care (clause 15): trustees are judged on their own skill and profession. Deed clauses that excuse a trustee from this are void. • Compliance notices and fines (clauses 33 and 34): the Master can issue compliance notices, then fines. Trustees pay fines personally, not from the trust. • Offences (clause 35): some offences carry fines of up to R10 million, up to five years' imprisonment, or both.
The Bill also defines what a valid trust needs. A sole trustee cannot also be the sole beneficiary, and a court may declare a non-compliant trust invalid.
What the experts flagged
No formal submissions have been published yet. The Fiduciary Institute of Southern Africa (FISA (opens in a new tab)) gathered its members' input for its own submission. Published commentary from law firms and trust specialists points to the same problem areas:
• The beneficial-owner definition. It refers to a person who "ultimately owns" trust property, but in law only the trustees own it. Werksmans (opens in a new tab) calls this "troubling"; Sentinel International (opens in a new tab) calls it "somewhat problematic". • A trust register that is never created. The Bill refers to a trust register but does not require one to be set up (Werksmans, Sentinel). • Unknown thresholds for financial statements. Whether small and dormant family trusts escape annual financial statements depends on figures the Minister has not yet set (Moonstone (opens in a new tab), STBB (opens in a new tab)). • Personal risk for trustees. Personal fines, liability after resignation and a higher standard for professionals all raise the stakes (OWP Partners (opens in a new tab), Sentinel). • A drafting error. The draft has two subsections numbered 6(4), and an offence refers to "section 6(4)" (Moonstone). • Capacity at the Master's Office. ENSafrica's Steven Powell supports the reform but questions whether the Master's Office can carry the workload (EWN (opens in a new tab)).
Government's position is that the 1988 Act has not been comprehensively reviewed in 38 years. It wants more transparency and alignment with FATF anti-money-laundering standards, "without imposing unnecessary regulatory burdens".
What it means for your family trust
Don't rewrite your trust deed because of a draft. The text will change, and acting early could mean doing the work twice. But some duties already apply today, and getting them right now puts you ahead of the new Act.
Already law today: • Since 1 April 2023, trustees must keep a beneficial-ownership register and lodge it with the Master (section 11A of the current Trust Property Control Act). • Trustees must keep proper trust records and keep trust money separate. • Trusts with income must file an IT3(t) return with SARS.
Coming under the new Act (if passed as drafted): • An annual return to the Master, with a fee, every year. • Annual financial statements, unless your trust falls under the exemption thresholds. • Ten days to report any change in beneficial ownership. • No deed amendment or trustee resignation works until the Master acknowledges it. • Personal fines for trustees who ignore compliance notices.
Good housekeeping now: • Check that your beneficial-ownership register is lodged and current. • Make sure every trustee's details and Letters of Authority are up to date. • Find your original trust deed and check it reflects how the trust actually runs. • If all your trustees are family and beneficiaries and the trust runs a business or owns rental property, think about an independent trustee.
What to watch for next
The final Act will look different from this draft. These are the milestones and open points we are tracking, and we will update this article as each one moves.
• Bill introduced in Parliament: shows which comments the Department accepted. • Portfolio Committee on Justice hearings: the last chance for public input. • Financial statement thresholds (clause 20): decide whether small and dormant family trusts must prepare annual financial statements. • Regulations on the annual return form and fees (clause 21): set the yearly cost and paperwork per trust. • The beneficial-owner definition: may be reworded so it no longer says someone other than the trustees "owns" trust property. • The trust register: whether the final Act actually creates the register that termination depends on. • Clause 6(4) numbering: the duplicate subsection affects which act is an offence. • Transitional period for existing trusts: the draft gives 6 months for the first annual return and financial statements; this could change. • The President's proclamation of commencement: the date from which every deadline starts to run.
How Lawvero can help
The new Act rewards trusts that are already in order. Start with a free trust audit: we check your deed, trustee appointments, Letters of Authority and beneficial-ownership register, and tell you plainly what needs fixing.
• Free trust audit: see where your trust stands before the new rules arrive. • Annual trust administration, from R495 per month: registers, records, minutes and filings kept up to date, year after year. • Beneficial-ownership filing, R900: your register prepared and lodged with the Master. • Independent trustee services: for family trusts that need an independent voice on the board. • New trust registration, from R9 450: set up properly from day one.
To book your free trust audit, email office@lawvero.co.za or WhatsApp 065 764 3430. You can also run our free Trust Compliance Health Check under Guides & Tools, or see our trust services under Products.
Sources and official documents
Official: • Draft Regulation of Trusts Bill, 2026: Government Gazette No. 55166, Notice 4088, 7 August 2026 (opens in a new tab) (Department of Justice and Constitutional Development) • Call for comment on the draft Regulation of Trust Bill (opens in a new tab) (Parliamentary Monitoring Group) • Draft Regulation of Trusts Bill published (opens in a new tab) (FISA)
Commentary: • Trust regulation to be overhauled (opens in a new tab), Ernest Mazansky, Werksmans • Regulation of Trusts Bill: new duties and risks for trustees (opens in a new tab), Moonstone • A new dawn for trust administration (opens in a new tab), STBB • The Regulation of Trusts Bill puts wealth structures under greater scrutiny (opens in a new tab), OWP Partners • The Regulation of Trusts Bill, 2026: what trustees need to know (opens in a new tab), Sentinel International • A new era for South African trusts (opens in a new tab), GB Inc • SA tightening laws around trusts (opens in a new tab), EWN
This article summarises a draft Bill as at 25 October 2026 and is general information only. Lawvero provides document preparation services and does not provide legal advice.