A trust has plays a vital role in estate planning and if administered properly, can be an excellent estate planning tool. A trust is a legal relationship which is created by the Founder by transferring assets to be held, controlled and administered by the Trustees for the benefit of the beneficiaries. A trust is a good medium to distribute and arrange one’s assets during his lifetime or after death. The law of trusts in Zimbabwe is a combination of common law and legislation.  A trust can only be valid if all the essentials of a valid trust are present.


The essentials required for the creation of a valid trust are as follows:

• There must be the intention to create a trust.
• The intention must be expressed in a way that creates an obligation.
• The object of the trust must be lawful.
• The trust property must be defined with certainty.
• The beneficiaries must be ascertained or ascertainable, or the impersonal object must be clearly defined.
• The Trustees must be identified in full name, identity particulars and addresses registered with the Registrar of Deeds
• The trust deed should be signed by the Trustees before a Notary Public

BENEFITS OF A FAMILY TRUST:

The main advantages of having assets in a family trust are: 

• Asset protection (protection of assets from creditors).  If assets held by the trust aren’t owned by the trustees or the beneficiaries, the creditors of the trustees or beneficiaries can have no claim against the trust.
• Continuity (A trust can ensure perpetual succession). When any trustee dies, the trust and any assets owned by it, remain unaffected.
• Tax Benefits
  • Estate duty – trusts do not pay estate duty (tax payable by a deceased estate).
  • The trust’s income can be taxed in the hands of either the trust or the beneficiaries (a valuable tax planning tool). 

For assistance with inquiries relating to Estate Planning or  setting up of Family Trusts kindly get hold of our Conveyancing & Estates Practice Group on info@mmmlawfirm.co.zw