The Trust Property Control Act does not prescribe a universal minimum or maximum number of trustees. The required number is therefore determined primarily by the trust deed. A trust can, in appropriate circumstances, have a single trustee, but a trust cannot validly be created with the same person as both the sole trustee and the sole beneficiary because there would be no separation between control and enjoyment.
Family trusts require an additional governance consideration. In Land and Agricultural Development Bank of SA v Parker, the Supreme Court of Appeal addressed the risks that arise where control and enjoyment are insufficiently separated. Chief Master’s Directive 2 of 2017 requires the Master to consider an independent trustee when a newly registered trust is a “family business trust”, meaning that the trustees can contract with independent third parties and create trust creditors, all the trustees are beneficiaries, and all the beneficiaries are related to one another.
Three trustees are often used because an odd number can make decision-making and continuity easier, but three is not a statutory minimum or legal requirement. The key is to comply with the minimum number and decision-making rules in the particular trust deed. If the number of trustees falls below the minimum required by the deed, the remaining trustees may lack capacity to bind the trust until the required composition is restored.
Where an independent trustee is appropriate, Wealth and Legacy Group can also act in that capacity, subject to the trust deed and acceptance of the appointment.
See also: How many trustees must a trust have in South Africa? | Can a founder of a trust be a beneficiary? | Can a trustee be a beneficiary of a trust?
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.