Setting up a family trust in Zimbabwe is a smart and strategic move for anyone looking to protect their assets, preserve wealth across generations, and simplify estate planning. A family trust helps to ensure that your property, investments, and other assets are managed according to your wishes, both during your lifetime and after your death. In this article, we provide a comprehensive step-by-step guide to set up a family trust in Zimbabwe, highlighting the legal requirements, documentation needed, and typical timelines involved.
What Is a Family Trust?
A family trust is a legal arrangement where a person (the settlor) transfers assets to trustees to manage on behalf of beneficiaries, who are typically family members. The trust becomes a separate legal entity that owns and manages the assets independently of the settlor’s personal estate.
In Zimbabwe, trusts are governed by the Trust Property Control Act [Chapter 8:09], and must adhere to specific legal formalities to be valid.
Step-by-Step Process to Set Up a Family Trust in Zimbabwe
1. Define the Purpose and Structure of the Trust
Before you start the family trust registration process, it’s important to define:
- The purpose of the trust: Is it to protect family wealth, manage inheritance, avoid probate, or provide for minors?
- Trustees: Appoint responsible individuals or a corporate trustee who will manage the trust assets.
- Beneficiaries: Identify who will benefit from the trust, either immediately or in the future.
- Assets to be included: Decide what property, investments, or cash you want to transfer into the trust.
This planning phase is essential and often done in consultation with a lawyer or estate planner.
2. Draft the Trust Deed
The trust deed is the founding document of the family trust. It outlines the rules of the trust, powers of trustees, the list of beneficiaries, and how the assets should be managed or distributed.
Key contents of a trust deed include:
- Name of the trust
- Details of the settlor, trustees, and beneficiaries
- Powers and duties of trustees
- Trust objectives
- Duration of the trust (often 75 years under Zimbabwean law unless terminated earlier)
A lawyer with experience in trust law should draft or review this document to ensure it complies with Zimbabwean legal standards.
3. Execute the Trust Deed
To formalize the trust, the settlor and trustees must sign the trust deed in the presence of a commissioner of oaths or notary public. This signature indicates agreement to the terms and legal establishment of the trust.
It is advisable to sign multiple original copies for future use in court, financial institutions, or other official procedures.
4. Register the Trust with the High Court
For legal recognition, family trust registration in Zimbabwe must be completed at the Deeds Registry within the High Court.
The following documents are required:
- Three original signed copies of the trust deed
- Copies of identity documents or passports for the settlor and trustees
- Proof of residence for all parties involved
- Completed High Court registration forms
- Payment of the prescribed registration fee (fees vary, but generally range from US$50 to US$200 depending on complexity)
Upon submission, the Registrar of Deeds will review the trust deed and supporting documents. If everything is in order, the Registrar will assign a Deeds Office registration number, officially recognizing the trust.
5. Open a Bank Account for the Trust
Once the trust is registered, the trustees can open a trust bank account to manage funds and transactions related to the trust.
Most banks in Zimbabwe require:
- A copy of the registered trust deed
- Deeds Office registration number
- Proof of registration
- Trustee identification and proof of residence
This account helps maintain transparency and separates the trust’s finances from the personal finances of the settlor or trustees.
6. Transfer Assets into the Trust
With the trust now operational, the settlor can begin transferring assets into the trust. This may include:
- Real estate (through a formal deed of donation or sale)
- Shares or investments
- Vehicles
- Bank deposits
For immovable property, a deed of transfer must be lodged with the Deeds Registry and attract transfer duties or capital gains tax if applicable. It’s important to consult a tax advisor during this stage.
7. Maintain Compliance and Records
Trusts are ongoing legal entities and must be actively managed. Trustees are responsible for:
- Filing annual tax returns if the trust earns income
- Keeping accurate records of meetings, distributions, and asset changes
- Acting in the best interest of the beneficiaries
- Following the trust deed’s stipulations
Trusts in Zimbabwe may also need to register with ZIMRA (Zimbabwe Revenue Authority) for tax compliance, especially if they generate income through rent, interest, or dividends.
Timeline for Setting Up a Family Trust
The full process to set up a family trust in Zimbabwe generally takes 2 to 4 weeks, broken down as follows:
Stage
Estimated Timeframe
Drafting the trust deed
2–5 working days
Signing and execution
1 day
High Court registration
5–10 working days
Opening bank account
3–7 working days
Asset transfer
Varies (depends on asset type)
Benefits of Setting Up a Family Trust in Zimbabwe
- Asset protection: Trust assets are insulated from personal liabilities or lawsuits.
- Estate planning: Avoids the probate process and simplifies inheritance.
- Confidentiality: Trusts are private arrangements, unlike wills which go through public probate.
- Tax planning: Potential tax advantages depending on how the trust is structured.
- Long-term wealth preservation: Ensures continuity of family wealth across generations.
Final Thoughts
Establishing a family trust is one of the most effective ways to secure your legacy and provide for your loved ones. While the process of family trust registration in Zimbabwe involves legal paperwork and careful planning, the long-term benefits outweigh the initial setup efforts. Always engage a qualified legal professional to guide you through the process and ensure compliance with Zimbabwean law.
