South African trust law does not prescribe a general maximum lifespan for an inter vivos trust. A trust can therefore continue for a long period, including across generations, if its trust deed permits this and it continues to have a lawful purpose.

The trust deed will usually determine when and how the trust terminates, for example on a specified date or event, once its purpose has been achieved, or when a termination power in the deed is validly exercised. The precise mechanism depends on the wording of the deed and the rights that beneficiaries have acquired.

A court can also vary or terminate a trust under section 13 of the Trust Property Control Act, but the section contains a specific test. The court must be satisfied that a provision in the trust instrument has produced a consequence that the founder did not contemplate or foresee and that the consequence either hampers the founder’s objects, prejudices beneficiaries, or conflicts with the public interest. Agreement between trustees and beneficiaries is therefore not, by itself, a substitute for the section 13 test where court relief is required.

There is no fixed legal interval at which a family trust must be reviewed, but periodic reviews are sensible to confirm that the deed, trustee composition, beneficial ownership information, tax compliance and purpose of the trust remain appropriate. Wealth and Legacy Group can assist with reviewing existing trusts and, where necessary, with appropriate amendments.

See also: Is a family trust a must? | What is the purpose of a family 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.