Trusts have many benefits including tax benefits. When the founder donates assets to the trust, then his/ her own estate is reduced, and the deceased estate of the founder will therefore be charges less estate duty.

When the founder donates income generating assets to the trust s/he thereby minimises his income tax liability since the property so donated no longer falls into the personal estate of the founder. The income generated by the trust property is taxed in the hands of the trustees or the beneficiaries, as the trust is a taxpayer of last resort. Section 56(1) of the Income Tax Act also provides that no donation tax is payable when property is disposed of, as a donation made in terms of a will (a donation mortis causa). The prohibition on the subdivision of agricultural land in terms of the Subdivision of Agricultural Land Act 70 of 1970 is not applicable to agricultural land transferred to a trust.

A trust is also more useful than a fideicommissum as the restrictions applicable to the number of fideicommissarii in terms of the Removal of Restrictions Act 94 of 1965 do not apply to a trust and trust assets can therefore remain in a family until perpetuity.