Business trusts
A business trust can be a practical way to hold shares and certain business assets while setting clear rules for control and succession. We help families and business owners across South Africa set up and manage business trusts with plain language guidance and careful administration.
When a business trust may be useful
A business trust is often used to hold shares in a company, member interests where relevant, or selected assets linked to a trading structure. It can help separate ownership from day to day operations and can also form part of wider estate planning where a family wants continuity if an owner retires, becomes unable to act, or passes away.
Whether a trust is suitable depends on the assets involved, the people who will benefit, the tax position and how the business is run. In some matters a trust is the right fit, in others another structure may be better. We explain the process in plain terms and work alongside your accountant and other advisers so the trust arrangement matches the facts of your situation.
- Holding shares in a private business
- Holding investment assets linked to a business group
- Creating a structure for succession planning
- Setting rules for trustee decisions and beneficiary interests
- Keeping ownership records and resolutions up to date
What is included in our business trust service
Our service covers the main practical steps needed to establish and run a business trust properly. We start by understanding what the trust is meant to hold and how decisions should be made. From there we prepare the trust documents, help with trustee appointments and guide the first set of records needed for the trust to start operating.
After setup, we can continue supporting the trustees with minutes, resolutions, annual paperwork and general administration. Where the trust forms part of a wider estate plan, we can also review how the trust works with the client's will and asset ownership plan.
- Initial discussion on the purpose of the trust and the assets to be held
- Drafting or arranging the trust deed and related documents
- Guidance on appointing trustees and setting decision rules
- Trust acceptance documents, founding resolutions and record pack
- Ongoing trust records, minutes and written resolutions
- Annual trust administration support with the client accountant
- General review of how the trust fits into estate planning
Our process step by step
We keep the process structured so that trustees and business owners know what comes next. Meetings can be held online or in person in Sandton, with remote support for clients in other parts of South Africa.
- Step 1: Introductory discussion about the business, the assets, the intended beneficiaries and the reason for the trust.
- Step 2: Review of the existing ownership structure, current will arrangements and any accounting or tax concerns raised by the client adviser team.
- Step 3: Preparation of the trust formation documents and practical setup requirements for signature.
- Step 4: Trustee appointment process, trustee guidance and creation of the opening trust file.
- Step 5: Transfer or issue steps for shares or assets where appropriate, with records kept for each action.
- Step 6: Ongoing administration support, including minutes, resolutions and annual document checks.
Each matter has its own details. For example, a trust that holds shares in one operating company may be fairly straightforward, while a trust linked to several entities or family branches may need more document review and more trustee meetings. We will flag those practical points early so there are fewer surprises later on.
What you should prepare before we start
Good preparation saves time and helps the trust deed and trustee records reflect what the family or business actually wants. Before the first working session, it helps to gather the core information about the people involved and the assets that may move into the trust.
- Identity and contact details for the founder, proposed trustees and beneficiaries
- A short note on the purpose of the trust and the business background
- Existing company records if the trust will hold shares
- Details of any assets to be transferred to the trust
- Copies of current wills that may need to work alongside the trust
- Recent accounting information where relevant
- Any existing trust papers if this is a review or restructure rather than a new trust
If some documents are missing we can still start with the planning discussion. We will tell you what is essential first and what can follow after the initial review, so the matter keeps moving.
How pricing is worked out
Pricing depends on the amount of work involved rather than a single standard figure. A new business trust with clear instructions and one asset type will usually require less work than a trust that must align with several entities, several trustees or older records that need sorting out. We explain the likely work stages up front and outline what will affect the final cost.
Common factors include the number of trustees, the number and type of assets, whether there are existing deeds or shareholder arrangements to review, and how much ongoing administration support is needed after setup. If outside professionals such as accountants or conveyancing practitioners are involved, their work will be separate from ours. Each matter depends on its facts and clients should get advice for their own legal and tax position.
Aftercare and ongoing trustee support
Setting up the trust is only the first part. A business trust needs proper records and regular attention so that decisions are documented and the trustees can show how they acted. We assist with ongoing administration support, especially where family members are trustees but want an organised process and an independent view on record keeping.
Aftercare may include drafting trustee minutes and resolutions, maintaining the trust record file, checking that annual paperwork is prepared with the accountant, and reviewing whether the trust still matches the family's estate planning goals. If ownership changes in the business or a beneficiary position changes we can help trustees record the steps properly. That ongoing housekeeping matters, even when trading is busy and paperwork tends to be left for later.
What our Trust and Estate Administration customers say
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Questions we get asked
Can a business trust run the day to day business?
Usually the trust is used to hold shares or assets rather than manage daily trading itself, but the right structure depends on the facts. We can explain the difference in plain terms and help you decide what needs to sit in the trust and what should stay elsewhere.
Do I need an independent trustee for a business trust?
Some trusts benefit from an independent trustee or outside trustee support, especially where there are several family interests or important assets involved. Whether that is appropriate depends on the trust deed, the assets and the level of independence needed in decision making.
Can you help if an older trust is already in place?
Yes. We can review an existing trust, its records and how it fits with the current business and estate plan. If updates are needed, we will explain the practical next steps and where separate legal or tax advice should be obtained for your situation.
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Talk to us about your trust or estate
Send a short note through our contact form about the trust, will or estate you need help with, and we will set up a first meeting.
Open the contact form