Yes. A trustee may also be a beneficiary of the same trust. This is common in South African family trusts, where family members may serve as trustees while also being discretionary beneficiaries.

There is, however, an important limit at the creation of the trust. The Supreme Court of Appeal confirmed in Land and Agricultural Development Bank of SA v Parker that a trust cannot validly come into existence where the same person is both the sole trustee and the sole beneficiary, because the trust requires a separation between control and enjoyment. A structure in which a trustee is also a beneficiary must therefore preserve that fundamental separation.

A trustee who is also a beneficiary remains subject to the same fiduciary duties as every other trustee, including the duty to avoid or properly manage conflicts between personal interests and the interests of the trust and its beneficiaries. Where the trustees are considering a benefit for one of their own number, the trust deed and the circumstances must be checked carefully. Some deeds expressly regulate whether the interested trustee may participate or vote, and in other circumstances abstention or another protective step may be appropriate. Any distribution must in all cases be authorised by the deed and result from a valid, bona fide trustee decision.

See also: Can a founder of a trust be a beneficiary? | Who is the beneficiary of an inter vivos trust? | How many trustees must a family trust have in South Africa?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.