TRUST REGISTRATION

A trust is a legal arrangement where an individual or organization (the Founder or Settlor) transfers assets such as money, property, or investments to a trustee to hold and manage for the benefit of other people or organizations (the beneficiaries). Here are some key things to know about trusts:

• Trusts are governed by a legal document called a trust deed that sets out the rules for how the assets should be managed and distributed.
• Trustees are appointed to be responsible for overseeing the trust and its assets, acting in the best interests of the beneficiaries.
• Beneficiaries are those who benefit from the trust, either directly or potentially in the future through distributions of income or capital from the trust assets.
• Trusts can be set up for various purposes like estate planning, protecting assets for minors, charitable giving, business succession, and more.
• Registration is not required by law but may provide advantages like increased transparency and protection.
• Trust relationships are fiduciary in nature, meaning trustees have legal duties to act solely in the interest of beneficiaries.
• Properly structured trusts help ensure assets pass according to the grantor’s wishes post-death or are protected for future beneficiaries.

So in summary, a trust is a legal structure where one party holds assets for the benefit of others according to the terms of the trust deed.

What are the advantages?

Here are some key advantages of officially registering a trust:

• Public record – Registration provides official public proof of the trust’s existence and terms. This protects against fraudulent claims.

• Transparency – Details of trustees, beneficiaries and trust assets are transparently recorded upfront to prevent disputes later.

• Privacy protection – Assets remain private unlike wills probated through the court system after death.

• Tax compliance – Easier for ZIMRA to check tax obligations are properly fulfilled with clear registration.

• Protection of intentions – Registration acts as a permanent record so trustees cannot divert assets away from original purposes.

• Ease of administration – Lifetime registration avoids complex probate issues and speedier transmission of assets after death.

• Trustee accountability – Open registration deters misconduct or negligence by trustees who know details are documented.

• Jurisdiction certainty – Establishes the trust is subject to the Zimbabwean laws rather than risk of foreign jurisdiction rules applying.

• Compliance clarity – Trustees precisely understand registration and ongoing compliance duties required.

  While not legally mandatory, official registration delivers clear advantages to evidence and protect the trust for beneficiaries.

Requirements for registering a Trust

Here are the main requirements for registering a trust in Zimbabwe:

• Trust objectives.

• At least two trustees.

• Details of the Founder who created the trust.

• Beneficiaries.

• Trust assets – Description of initial settled property/endowment or intended transfer of assets.

• Registration address inZimbabwe for correspondence from the registry.