A Guide to Setting Up a Trust in Zimbabwe

Part 1: Understanding the Basics - What is a Trust?

Imagine a secure box. You (the **Settlor** or **Founder**) put your valuable assets into this box. You then appoint a trusted person (the **Trustee**) to manage the box and everything inside it. Finally, you give the Trustee a set of strict instructions on how and when to give the assets to the people you want to benefit (the **Beneficiaries**). That secure box is a Trust.

It's a legal way to separate the ownership of your assets from your personal name, placing them into a separate legal entity. This has powerful benefits for protecting your wealth and ensuring it's managed according to your wishes, even after you're gone.

Part 2: The Main Reasons to Set Up a Trust

People set up trusts for several key reasons, primarily centered around protection and planning for the future.

• Estate Planning & Avoiding Probate: This is a major benefit. Assets held in a trust are not considered part of your personal estate when you pass away. This means they do not have to go through the lengthy and often costly process of the Master of the High Court. Your beneficiaries can access the assets much more quickly and privately.
• Asset Protection: By moving assets into a trust, you can protect them from future personal creditors or legal claims. Since the trust owns the asset, it is generally shielded from risks associated with your personal finances.
• Caring for Dependents: A trust is an excellent way to provide for children or other dependents. You can specify in the Trust Deed how the funds should be used for their education, healthcare, and upkeep until they reach a certain age.
• Business Succession: For business owners, a trust can be a key part of a succession plan, ensuring the business can continue to operate smoothly for the benefit of the family.

Part 3: The Process of Creating a Trust in Zimbabwe

Setting up a trust is a formal legal process that must be handled correctly to be valid. You cannot do it yourself; you will need professional legal assistance.

The Step-by-Step Guide:

1. Engage a Registered Notary Public: Your first and most important step is to find a qualified lawyer who is also a **Notary Public**. Only a Notary Public can draft and register a valid Trust Deed in Zimbabwe.
2. Define the Terms of Your Trust: You will work with your lawyer to decide on the key elements:
   • Who will be the **Trustees**? (You can be one of them). You should choose at least two trusted and responsible individuals.
   • Who will be the **Beneficiaries**? (e.g., your spouse, your children).
   • What **assets** will be placed in the trust? (e.g., your house, shares in a company).
   • What are the **rules**? (e.g., how the income should be used, at what age a child can receive their inheritance).
3. Drafting the Trust Deed: The Notary Public will draft the official Trust Deed. This document is the constitution of your trust and contains all the rules and appointments. Review it very carefully to ensure it perfectly reflects your wishes.
4. Signing and Registration: Once you are happy with the deed, it must be signed by you (the Settlor) and the Trustees in the presence of the Notary Public. The Notary will then register the Trust Deed with the High Court of Zimbabwe.