How to Register a Trust in South Africa

April 3, 2025

Registering a trust in South Africa is an important part of leaving a legacy or protecting your assets. You can use a trust to distribute your wealth according to your wishes, better plan your taxes, safeguard your assets from potential creditors and legal disputes, and plan how your assets will be distributed after you die with a will.

If you’re unfamiliar with the legal process and steps required, setting up a trust can seem overwhelming.

In this post, we’ll provide an overview of how to set up a trust in South Africa: the documents you must submit, what to expect, and how RC Smith and Associates can be of assistance.

What Is a Trust?

A trust is a legal arrangement that dictates how your assets are managed in a certain event, such as your death. A trustee (person who manages the trust) is given the right to distribute assets to designated beneficiaries, such as a charity or family.

You can use a trust to minimise taxes for heirs when you die, protect your assets from creditors, control the distribution of assets over time, and avoid probate (the legal process that ensues when you die without a will).

There are different kinds of trust, each with varying legal processes and requirements, including:

  • Testamentary trusts: created in a will and only effective once the testator dies
  • Inter vivo trusts: established during the lifetime of the grantor (person who creates the trust) and can be used for asset or estate planning
  • Discretionary trusts: these provide the trustee with discretion in how the trust is to be distributed.

Ask your attorney or financial advisor about which type of trust might best suit your needs – there are also revocable trusts, irrevocable trusts, living trusts, and charitable trusts.

The Process of Registering a Trust

To register a trust, you must choose a trustee or trustees, choose a trust name and draft the deed, nominate beneficiaries, register the trust with the Master of the High Court, open a bank account for the trust, and transfer assets to the trust.

Choose a Trustee

A trustee is the person or entity (such as a law firm) that will administrate your trust. It will distribute your trust among your chosen beneficiaries, ensure proper regulations are followed, and ensure the trust operates in line with the set-out objectives.

Your chosen trustee must be:

  • At least 18 years old
  • Competent to contract
  • Capable of fulfilling fiduciary duties

While your trustee may be the founder of the trust, we advise that you appoint an independent party to ensure impartiality and compliance with legal requirements.

Choose a Name for Your Trust

Preferably not your name and/or surname, which would make it easy for creditors or SARS to track your trust. Trusts are registered at the Master of the High Court and not at the Registrar of Companies. This allows you to give a trusta name you desire. You do not have to first reserve a name as you would do when registering a company.

Draft the Trust Deed

This is the document that sets out the terms and conditions of the trust. It outlines the powers and responsibilities of the trustee, the rights and entitlements of the beneficiaries, and the purpose and objectives of the trust. You should use an attorney to draft this document, as trust laws can be complex. If there’s an error in the document, it could be deemed invalid.

Nominating Beneficiaries

The beneficiaries are normally named in the Trust Deed.

Register the Trust with the Master of the High Court

You should register your trust with the Master of the High Court. You’ll submit the trust document, a completed application form, and any other supporting documentation required by the Master’s office (depending on the trust you’re registering). The Master of the High Court will then issue Letters of Authority, authorising the trustees to act on behalf of the trust and perform their duties.

Open a Bank Account for the Trust

To keep the trust assets separate from those of the trustees and beneficiaries, you should open a bank account for the trust. You may have to provide the bank with a trust deed, the Letters of Authority from the Master of the High Court, and proof of identity for the trustees.

Transfer Assets to the Trust

Next, you should transfer assets to the trust. Typically, this is a legal process, especially in the case of immovable property (such as a house), investments, money, and moveable assets. Some assets may require title deed transfers, share transfers, and updated beneficiary designations. Consult an attorney to ensure the transfer is completed according to regulations and lawfully. It is also recommended that you consult a tax expert to familiarize yourself with the tax implications of transferring assets into the trust.

Once you’ve created trust, ensure it is well-maintained, complies with tax obligations, and that the trustee fulfills their fiduciary duties.

We Can Help You Register Your Trust

The attorneys at RC Smith and Associates have a special interest inproperty lawand the legal framework in which trusts operate. Let’s assist you create a trust that reflects your wishes and makes a difference. Contact us today.