Welcome to our Trusts Blog, your go-to resource for practical, up-to-date information on all aspects of trusts in South Africa. Whether you’re a trustee, a founder, a beneficiary, or simply considering whether a trust is right for your estate planning needs, this section provides clear, expert-backed insights to help you make informed decisions.
At Sparrows Chartered Accountants, we understand that trusts are more than just legal structures — they are vehicles for protecting assets, preserving wealth, and ensuring long-term financial security for future generations. However, they come with specific responsibilities, tax rules, and administrative requirements that must be handled with precision.
Trusts play a vital role in estate planning, tax optimisation, and asset protection. In a country where estate duty can claim up to 25% of an individual’s wealth upon death, using a trust strategically can legally minimise that impact. But trusts are not only for the wealthy — they are also useful for:
When managed properly, a trust offers flexibility, continuity, and tax efficiency. But improper use or non-compliance can lead to SARS scrutiny, penalties, or the trust being disregarded entirely.
Our Trusts blog category features articles that simplify complex tax and compliance issues while offering practical strategies for trust management. Topics we cover include:
Each article is written with South African legislation in mind and reflects the latest tax updates from SARS and the Income Tax Act.
All content in this blog is prepared by our team of experienced Chartered Accountants (CA(SA)) and tax practitioners who work daily with trusts — from structuring and setup to annual submissions and dispute resolution. Our goal is to provide accurate, accessible information that helps you maintain full compliance while optimising the trust’s financial impact.
We don’t just write about trusts — we manage them, file them, and defend them.
If you’re unsure whether your trust is compliant, need help preparing an ITR12T, or are considering setting up a new trust to protect your family’s future, we’re here to help.
Sparrows Chartered Accountants offers comprehensive trust administration services, including:
Explore our articles below or contact us to speak directly with a qualified advisor.
Your legacy matters — let us help you protect it, legally and effectively.
Estate duty in South Africa can take a significant portion of the wealth you intend to leave behind — up to 25% of your estate’s value in some cases. Without proper planning, families often lose millions in taxes that could have been legally avoided. One of the most powerful tools available for this purpose is…
Receiving a SARS assessment that misrepresents your trust’s tax position can be stressful — especially when it includes disallowed deductions, misclassified income, or unexpected penalties. Fortunately, disputing a SARS trust assessment is a formal process with clear steps that trustees can follow to challenge errors and protect the trust’s compliance. Whether the issue involves Section…
A trust is more than just a legal vehicle for protecting assets — it’s a living financial entity that requires disciplined administration and full transparency. In South Africa, trust accounting is a legal obligation, not a luxury. Without proper records, trustees can face audits, penalties, or even personal liability. Whether you’re a trustee, founder, or…
Trusts are a powerful tool for estate planning, asset protection, and long-term wealth management in South Africa. But with their benefits come complex compliance responsibilities — especially when it comes to tax. Whether you’re a trustee, founder, or beneficiary, understanding how trust tax returns in South Africa work is essential to avoid penalties and remain…