Everything You Need to Know About a Beneficiary Register for South‑African Trusts

A South‑African trust can be a powerful vehicle for asset protection and estate planning – but only when it is transparent, compliant and well‑governed. Since 1 April 2023, sweeping amendments to the Trust Property Control Act 57 of 1988 have forced trustees to up their game by creating and maintaining an up‑to‑date beneficiary (beneficial‑ownership) register for every trust.

Failing to comply is no longer a slap‑on‑the‑wrist administrative oversight: trustees now face fines of up to R10 million and/or five years’ imprisonment for non‑compliance. In this article we unpack – in plain English – what a beneficiary register is, the information it must contain, the deadlines and penalties, and practical tips to help trustees (and founders) stay on the right side of the law.

What Is a Beneficiary Register?

A beneficiary register (formally, a beneficial‑ownership register) is a prescribed list – kept internally by the trustees and lodged electronically with the Master of the High Court – that records exactly who ultimately benefits from, controls or materially influences the trust.

Why the sudden regulatory focus?

South Africa’s inclusion on the Financial Action Task‑Force (FATF) “grey list” in 2023 forced the government to plug transparency gaps exploited for money‑laundering and terrorist‑financing. The General Laws (Anti‑Money‑Laundering and Combating Terrorism Financing) Amendment Act inserted section 11A into the Trust Property Control Act, compelling every trustee to identify, verify, record and submit beneficial‑ownership data.

Who Qualifies as a “Beneficial Owner”?

South Africa’s new rules purposely cast a wide net to capture every natural person who might influence, control, or ultimately benefit from trust assets. Below is an expanded look at each category you must include in your beneficiary register, along with a brief description of why that person matters:

1. The Founder (or Donor)
   This is the individual who originally settled assets into the trust. Even if the founder later resigns as trustee or has no day‑to‑day involvement, their intention and initial contribution created the trust’s value—so regulators insist on recording the founder’s identity and role.
2. Every Trustee
   Trustees hold legal title to the trust assets and make all management and distribution decisions. Because trustees exercise direct control, each one—professional, independent, or family member—must be listed with full personal details. If a trustee steps down or a new trustee is appointed, the register must be updated within 30 days.
3. Named Beneficiaries
   These are individuals specifically identified in the deed (e.g., “my children Jane and John”). Once a beneficiary’s right to income or capital vests, they obtain a legally enforceable claim against the trust. Recording their details ensures transparency about who is entitled to benefit.
4. Discretionary Beneficiaries Who Have Benefited
   Many family trusts list broad classes such as “any of my descendants” without naming each child or grandchild. Under the new rules, discretionary beneficiaries only need to be added to the register once they actually receive a distribution or other benefit, triggering a “beneficial‑ownership event.”
5. Individuals Exercising Effective Control
   Not every influencer is formally appointed. A protector with veto powers, a family patriarch who can hire or fire trustees, or an adviser who dictates investment moves all count as beneficial owners if they can materially sway trustee decisions. The register must capture these “shadow controllers” to prevent hidden influence.
6. Persons With At‑Sight or Future Rights
   If the deed grants someone a right that will vest automatically upon a future date or event—say, a grandchild inheriting capital at age 30—that person becomes a future beneficial owner and should be pre‑emptively listed with an “expected vesting date.”

By documenting each of these categories in your beneficiary register—along with the prescribed personal details—you satisfy section 11A of the Trust Property Control Act, demonstrate good governance, and protect the trust from suspicions of secrecy or misconduct.

Mandatory Information to Record

Section 11A and the Master’s October 2023 Directive require the following data for every beneficial owner:

1. Full legal name and any former names
2. ID or passport number (plus country of issue)
3. Nationality and residency
4. Date of birth
5. Residential address (and, if different, business address)
6. Nature of beneficial interest (e.g., founder, trustee, discretionary beneficiary, protector)
7. Date on which the person became – and, if applicable, ceased to be – a beneficial owner

The register must be kept electronically in the format set out on the Master’s ICMS Web Portal and updated within 30 days of any change.

Filing and Deadlines

• Existing trusts: Trustees had to file initial registers by 15 November 2024 (or within 90 days after receipt of letters of authority, whichever came later).
• New trusts: Submit the register on or before lodging the trust for registration.
• Ongoing updates: Any change (new trustee, new beneficiary, address update) must be lodged within one month.

The filing is done online via the Master’s ICMS portal using each trust’s unique reference number.

Penalties for Non‑Compliance

Trustees who fail to keep or lodge an accurate beneficiary register commit an offence under the Trust Property Control Act. The Master, SARS or the Financial Intelligence Centre may:

• Issue compliance directives and administrative penalties;
• Impose a fine up to R10 million or imprisonment up to five years for wilful default;
• Remove the defaulting trustee and appoint a replacement;
• Report the breach to accountable institutions, which may freeze trust bank accounts until rectified.

Banks, attorneys, estate agents and auditors are also legally obliged to refuse business or file suspicious‑transaction reports if a trust cannot produce proof of an up‑to‑date register.

Best‑Practice Tips for Trustees

1. Appoint an independent professional trustee. Professionals already keep compliant records and know how to file online.
2. Consolidate your source documents. Maintain digital copies of IDs, passports and proof‑of‑address for every beneficial owner.
3. Build the register template into meeting agendas. Make “beneficial‑ownership changes” a standing item and minute any updates.
4. Automate reminders. Use calendar alerts to review the register quarterly—even if no changes occurred.
5. Train co‑trustees. Everyone must understand the legal duty; ignorance is not a defence.
6. Coordinate with tax advisers. The Master may share register data with SARS; ensure beneficiary details tie up with tax numbers and declarations.

Practical Scenarios

• Adding a new discretionary beneficiary: After trustees resolve to assist a grandchild with university fees, they must (i) minute the decision, (ii) capture the grandchild’s details and interest type in the register, (iii) lodge an update within 30 days.
• Trustee resigns, new one appointed: Record the outgoing trustee’s cessation date and the incoming trustee’s details, then file the amended register before the new trustee can transact at the bank.
• Dormant trust revived: Even if no distributions have occurred for years, the trustees must file a register before re‑opening the trust bank account.

Why the Register Protects You

Transparency is not merely a bureaucratic hoop:

• Deters fraud: Clear records reduce the chance of hidden beneficiaries or unauthorised control.
• Speeds up transactions: Banks and conveyancers now demand proof of compliance before opening accounts or transferring property.
• Avoids personal liability: A trustee who can evidence diligent record‑keeping is far less likely to be sued for breach of fiduciary duty.

Crest Trust provides turnkey solutions: drafting and lodging registers, training lay trustees, and acting as an independent professional trustee to shoulder compliance risk.

Conclusion

Creating and maintaining a compliant beneficiary register is now a legal—and practical—necessity for every South‑African trust. It protects honest trustees, reassures banks and regulators, and keeps criminals out of the financial system. If compiling, updating or lodging your register feels daunting, let Crest Trust step in. Our fiduciary specialists will build a robust compliance framework so you can focus on what really matters: preserving and growing family wealth for generations to come. Reach out today for a no‑obligation consultation.

FAQs

What is a beneficiary registry?

In the trust context, it is a formal list, kept by trustees and filed with the Master of the High Court, identifying every natural person who ultimately owns, controls or benefits from the trust.

How do I register a beneficiary?

The trustees pass a resolution admitting the beneficiary (if discretionary) or noting that a named beneficiary has vested. They then capture the person’s prescribed details in the beneficiary register and lodge the update via the Master’s ICMS portal within 30 days.

Who is the beneficiary of a registered account?

For a trust bank or investment account, the beneficiary is not an individual— it is the trust itself. However, behind that account the Master’s beneficiary register discloses the natural persons who own or control the trust assets.

What is a register of beneficial owners?

It is an official record—required by anti‑money‑laundering laws—of the individuals who ultimately control or profit from a legal entity, such as a company or trust. In South Africa, both CIPC (for companies) and the Master of the High Court (for trusts) enforce beneficial‑ownership registers.