Trust disputes in South Africa can become complex very quickly. A disagreement that begins with a request for information may develop into a dispute about trustee authority, beneficiary rights, trust financial records, amendments to the trust deed, beneficial ownership compliance, or (in sufficiently extreme cases) urgent High Court litigation.
Trusts are often created to protect family assets, provide for children or vulnerable beneficiaries, manage business interests, or support estate planning. When a trust is properly administered, it can be a useful and flexible legal structure. When trustees fail to comply with their duties, however, the consequences can be serious.
At the centre of most trust disputes is the trust deed. This document determines who the trustees and beneficiaries are, what powers the trustees have, how decisions must be taken, when benefits may be distributed, and what must happen if trustees resign, die, disagree, or fail to perform their duties.
South African trust law does not allow trustees to manage trust property as if it belongs to them personally. The Trust Property Control Act 57 of 1988 requires trustees to administer trust property with proper care, diligence and skill. Where trustees fail to do so, beneficiaries, co-trustees, heirs, creditors or other interested parties may need legal assistance.
Common Trust Disputes in South Africa
Trust disputes in South Africa usually arise when trustees, beneficiaries, family members, heirs, creditors, or business partners disagree about how the trust is being managed. These disputes often involve both legal interpretation and practical evidence.
Common trust disputes include:
- Removal of trustees: A trustee may be removed by a court where removal is in the interests of the trust and its beneficiaries. The Master of the High Court may also remove a trustee in certain circumstances under the Trust Property Control Act.
- Failure to account or provide information: Beneficiaries may require financial statements, bank records, resolutions, vouchers, investment reports, or explanations for trustee decisions.
- Disputes about trustee decisions and resolutions: Trustees must act in accordance with the trust deed. Disputes often arise where trustees disagree about whether a decision was properly authorised.
- Amendment, variation or termination of a trust: Section 13 of the Trust Property Control Act allows a court to vary or terminate trust provisions only where the statutory requirements are met.
- Claims for trust benefits: Beneficiaries may need assistance where they have been excluded from consideration, treated unfairly, denied information, or deprived of benefits they believe they are entitled to receive.
- Civil claims involving trusts: A trust may be involved in contract disputes, property claims, loan account disputes, damages claims, business disputes, or disputes about trustee authority.
- Disputes linked to deceased estates: Trust litigation often overlaps with estate disputes, especially where a founder has died, family members disagree about control of assets, or a testamentary trust was created by a will.
Where a dispute involves a deceased estate, it is often important to consider both the trust deed and the estate documents. Vermeulen Attorneys assists clients with deceased estates litigation and related trust disputes where family, asset-control and inheritance issues overlap.
Why the Trust Deed Is the Starting Point
The trust deed is the foundation of the trust. It determines the trustees’ powers, the beneficiaries’ rights, decision-making procedures, quorum requirements, distribution provisions, and mechanisms for replacing trustees.
Before taking legal steps, attorneys will usually review the trust deed to assess:
- whether the trustees were properly appointed;
- whether the trustees had authority to act;
- whether trustee resolutions were valid;
- whether decisions required unanimity or majority approval;
- whether beneficiaries have vested or discretionary rights;
- whether the deed allows distributions, loans, asset sales or amendments; and
- whether a court application may be necessary.
The Constitutional Court confirmed in Shepstone and Wylie Attorneys v De Witt NO and Others [2025] ZACC 14 that a trust deed may permit majority decision-making where its wording allows this. The Court rejected an unwarranted distinction between so-called “internal” and “external” trustee decisions and emphasised the importance of the trust deed itself.
This does not mean that trustees may ignore dissenting trustees or take informal decisions. Proper notice, quorum, meeting procedures, resolutions, and the wording of the deed remain critical.
Failure to Account to Beneficiaries
One of the most common trust disputes in South Africa is a trustee’s failure to account. Beneficiaries often approach attorneys because trustees refuse to provide proper financial information, bank statements, investment records, vouchers, trustee resolutions, or explanations for decisions affecting the trust.
In Snyman v De Kooker NO and Others [2024] ZASCA 119, the Supreme Court of Appeal confirmed that trustees who stood in a fiduciary relationship with the beneficiary were obliged to account properly. The Court found that the accounting provided in that matter fell short and criticised the trustees’ handling of their fiduciary obligations.
The practical lesson is clear: trustees should not assume that providing limited bank statements or informal explanations will always be sufficient. A proper account may require supporting documents, explanations, and a coherent record of how trust property was managed.
Removal of Trustees and Section 20 of the Trust Property Control Act
Where trustee conduct places the trust or beneficiaries at risk, removal may be appropriate. Section 20 of the Trust Property Control Act deals with the removal of trustees by the court and by the Master in specified circumstances.
Trustee removal may be considered where a trustee:
- fails to administer the trust properly;
- refuses to account to beneficiaries or co-trustees;
- acts with a conflict of interest;
- misuses trust property;
- acts without proper authority;
- ignores the trust deed;
- fails to comply with lawful requests from the Master; or
- damages the proper functioning of the trust.
Removal is not granted simply because beneficiaries dislike a trustee or because family relations have deteriorated. The central question is whether removal is justified in the interests of the trust and its beneficiaries.
Variation or Termination of a Trust Under Section 13
Section 13 of the Trust Property Control Act allows a court to vary or terminate trust provisions in certain circumstances. This remedy is not automatic and should not be confused with trustee removal.
The Supreme Court of Appeal addressed this distinction in Snyman v De Kooker NO and Others, cautioning against confusing section 13 termination or variation relief with section 20 trustee-removal relief.
In Lenette Janse De Wit and Others v Toerien De Wit NO and Others [2026] ZASCA 23, the Supreme Court of Appeal again considered section 13 in the context of a family trust dispute after the death of the founder. The appellants sought termination of the trust and the appointment of a receiver to deal with and distribute trust assets. The SCA dismissed the appeal and confirmed that the section 13 requirements had not been met.
The Court accepted that the founder’s intention must be determined primarily from the trust deed itself, rather than from informal discussions or later statements. The decision is an important warning that family conflict alone will not necessarily justify termination of a trust.
Beneficial Ownership Compliance and Trust Administration
Trust administration now includes important compliance duties relating to beneficial ownership. The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022 introduced amendments to the Trust Property Control Act, including requirements relating to beneficial ownership information.
Section 11A of the Trust Property Control Act requires trustees to establish, record and keep up-to-date information relating to the beneficial owners of a trust and to lodge prescribed beneficial ownership information with the Master of the High Court.
Trustees should not wait until a dispute arises before regularising compliance. Poor record-keeping, missing beneficial ownership information, unsigned resolutions, and incomplete trustee records can all become litigation risks.
Where trust administration involves the Master’s Office, trustees and beneficiaries may also need to consult the Master of the High Court or obtain legal guidance on the correct process.
Warning Signs That a Trust Dispute Needs Legal Attention
A trust dispute should be taken seriously where:
- trustees refuse to provide reasonable information or accounts;
- trust property is mixed with personal assets;
- trustees act without proper resolutions or authority;
- one trustee dominates the trust and excludes others;
- beneficiaries are ignored or treated inconsistently;
- there are unexplained payments, loans, transfers or asset sales;
- the trust deed is outdated, unclear or silent on important procedures;
- a trustee has a personal conflict of interest;
- the trust is linked to a deceased estate, divorce, business dispute or creditor claim;
- the Master has raised compliance concerns; or
- urgent steps may be required to prevent loss, dissipation or transfer of trust property.
Early legal advice can help preserve evidence, avoid procedural mistakes, and determine whether the dispute should be resolved through correspondence, mediation, engagement with the Master, or court proceedings.
When Is a High Court Application Necessary?
Some trust disputes can be resolved through correspondence, negotiation, trustee meetings, proper accounting, or mediation. Others require litigation.
A High Court application may be necessary where:
- trust property is at immediate risk;
- a trustee must be removed;
- an independent trustee must be appointed;
- trustees refuse to account;
- trustee resolutions or transactions must be declared invalid;
- urgent interdictory relief is required;
- the court must interpret the trust deed;
- section 13 variation or termination relief is sought; or
- civil claims must be brought against the trust or trustees.
High Court litigation is governed by procedural rules, including the Uniform Rules of Court. Trust litigation must therefore be carefully framed from the beginning, especially where urgent relief, accounting relief, trustee removal, or declaratory orders are required.
How Attorneys Can Assist with Trust Disputes in South Africa
Attorneys can assist trustees, beneficiaries, heirs, creditors and interested parties before and during litigation. This may include:
- reviewing and interpreting the trust deed;
- confirming trustee authority and appointment documents;
- assessing beneficiary rights;
- requesting trust financial records and supporting documents;
- preparing formal demands and correspondence;
- engaging with the Master of the High Court;
- advising trustees on compliance and record-keeping;
- drafting trustee resolutions;
- regularising trust administration;
- negotiating settlements;
- advising on mediation and alternative dispute resolution; and
- preparing High Court applications where necessary.
Where a dispute can be resolved without litigation, mediation may be appropriate. In suitable matters, parties may consider mediation and alternative dispute resolution services before escalating the dispute further.
Where litigation is unavoidable, possible remedies may include accounting relief, removal of trustees, appointment of new or independent trustees, variation of trust provisions, declaratory orders, interdicts, civil claims against trusts, or applications involving trust property.
Vermeulen Attorneys assists clients with trusts litigation, trust deed interpretation, trustee disputes, beneficiary claims, trust compliance, and court proceedings involving trust property.
Personal Consequences for Trustees
Trustees may face personal consequences where they seriously disregard their fiduciary duties. In Snyman v De Kooker NO and Others, the Supreme Court of Appeal found that the trustees had grossly disregarded their fiduciary responsibility to account to the beneficiary and ordered costs de bonis propriis. This meant that the trustees were ordered to pay costs personally rather than from trust funds.
This is an important reminder that trustees must treat their office seriously. Trust property must be properly administered, trust decisions must be properly recorded, and beneficiaries must be treated in accordance with the law and the trust deed.
Conclusion
Trust disputes in South Africa can be emotional, technical and financially significant. They often involve family history, business interests, estate planning, trustee duties, beneficiary rights and litigation strategy at the same time.
The trust deed, the Trust Property Control Act, trustee conduct, financial records and available evidence all matter. Recent case law confirms that courts expect trustees to account properly, comply with their duties, and follow the trust deed carefully.
If you are a trustee, beneficiary, heir, creditor or interested party involved in a trust dispute, early legal advice can make a significant difference. Vermeulen Attorneys assists with trust disputes, trustee removal, trust deed interpretation, beneficiary claims, trust compliance, deceased-estate related trust litigation, and court proceedings involving trust property.
Contact us today to schedule a consultation.
Frequently Asked Questions About Trust Disputes in South Africa
Can a trustee be removed from a trust in South Africa?
Yes. A court may remove a trustee where removal is in the interests of the trust and its beneficiaries. The Master of the High Court may also remove a trustee in certain circumstances set out in the Trust Property Control Act.
Can beneficiaries demand trust financial records?
Beneficiaries may be entitled to proper information depending on the trust deed, the nature of their rights, and the facts. In Snyman v De Kooker NO and Others, the Supreme Court of Appeal confirmed that trustees who stood in a fiduciary relationship with a beneficiary were obliged to account properly.
Can a court terminate a trust because the family is fighting?
Not automatically. A court must be satisfied that the requirements of section 13 of the Trust Property Control Act are met. The 2026 Janse De Wit decision confirms that family conflict alone will not necessarily justify termination of a trust.
Do all trustees have to sign every trust resolution?
Not necessarily. The answer depends on the trust deed. The Constitutional Court confirmed in Shepstone and Wylie Attorneys v De Witt NO and Others that a trust deed may allow majority decision-making, provided the required procedures are followed.
What should I do if trustees refuse to account?
You should obtain legal advice and preserve all relevant correspondence, requests, bank records, resolutions and documents. Depending on the facts, attorneys may send a formal demand, engage with the Master, seek accounting relief, or approach the High Court.
When should I contact an attorney about a trust dispute?
You should seek legal advice as soon as there are concerns about trustee misconduct, refusal to account, unauthorised decisions, beneficiary exclusion, trust property at risk, compliance failures, or disputes linked to a deceased estate or business interests.
