“Living trust” is not a formal statutory term in South African trust law. It is commonly used to describe an inter vivos trust, meaning a trust created during the founder’s lifetime rather than under a will after the founder’s death.

A living or inter vivos trust can hold and administer assets while the founder is alive and can continue after the founder’s death. It may be used for purposes such as managing investments, holding family or business assets, providing for dependants, or creating continuity in the management of wealth. The trustees may act only once authorised in writing by the Master of the High Court.

The terms “revocable” and “irrevocable” are frequently used in international trust literature, but they are not the principal statutory classifications used in South Africa. Whether an inter vivos trust can be amended, cancelled or terminated depends on the trust deed, the rights of the beneficiaries, whether benefits have been accepted, applicable common-law principles and, in some circumstances, a court order. The label alone does not determine the trust’s tax or asset protection consequences.

See also: What is the difference between an inter vivos trust and an irrevocable trust? | How do I know if my trust is revocable or irrevocable?

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.