Category: Family law

The Benefits of Setting Up A Family Trust in Zimbabwe: What you Need To Know!

The Benefits Of Setting Up A Family Trust in Zimbabwe

SOME OF THE BENEFITS OF SETTING UP A FAMILY TRUST IN ZIMBABWE ARE DETAILED BELOW:

Property held in a Family Trust is shielded from creditors. Creditors cannot attach trust assets to settle the personal debts of the Founder, Trustees, or beneficiaries. Even after the Founder’s death, creditors still cannot claim property registered in the Family Trust.

A Family Trust protects family property because Trustees actively manage the assets for the beneficiaries or children. No child may sell or damage Trust property unless the Trust Deed specifically allows it. Each Family Trust is customised to meet the client’s needs, so there is no one-size-fits-all approach.

A Family Trust also curbs misuse of property or funds, as Trustees control and administer the assets strictly for the beneficiaries’ benefit.

The law recognises a Trust as a separate legal entity. As a result, even if the Founder or Trustees face contractual, criminal, or matrimonial disputes, the Trust’s property remains separate from their personal assets. Only in rare, legally defined circumstances can this separation be disregarded.

A Trust has perpetual succession. It does not “die.” When the Founder or Trustees pass away, become incapacitated, or step down, the Trust continues to operate. It remains active until the Trustees dissolve it according to the Trust Deed.

A Family Trust also offers tax advantages. For example, when the Founder dies, property registered in the Trust does not fall under the Deceased Estates Succession Act, which calculates taxes on the total value of the estate. Trust property stays intact and unaffected.

A Family Trust further helps prevent inheritance disputes among parents, children, and relatives. Because the property belongs to the Trust, it is not redistributed when the Founders die. The assets remain with the Trust as usual.

A Trust also has full contractual capacity. It can enter into binding agreements with individuals or entities in its own name.

With the advantages listed above on these key benefits of setting up a Family Trust, why haven’t you set up yours?

This is for general information purposes only!

NEW MARRIAGES ACT- FAQs

Q: WHEN DID THE MARRIAGES ACT [CHAPTER 5:17] COME INTO EFFECT ?

A: The Marriages Act [Chapter 5:17] came into effect on the 16th of September 2022 through the proclamation in SI 164/2022.

Q: IS A CIVIL PARTNERSHIP A MARRIAGE?

A: No. It is a relationship between a man and a woman that are above the age of 18 and have satisfied the requirements laid out in terms of Section 41 of the Marriages Act [Chapter 5:17] .

Q: CAN A HUSBAND OR WIFE IN A CIVIL MARRIAGE PARTAKE IN A CIVIL PARTNERSHIP?

A: Yes – Spouses that are married in terms of the laws of the country can engage in a civil partnership.

Q: CAN A MARRIED PERSON THAT HAS A CIVIL PARTNER BE ARRESTED FOR BIGAMY?

A: No. A party to a civil marriage can engage in a civil partnership and they are not guilty of committing the crime of bigamy, as a civil partnership is not a marriage hence no crime has been committed. Section 41(6) of the Marriages Act [Chapter 5:17];

(6) It is here provided that, by virtue of the partners dissolving their civil partnership, neither of them shall be deemed to be guilty of bigamy contrary to section 104 of the Criminal Law Code if either of them is legally married to someone else.

Q: CAN MY SPOUSE’S CIVIL PARTNER CLAIM THE PROPERTY THAT I OWN IF I AM LEGALLY MARRIED?

A:  The only property shared is that which was acquired by the civil parties during the subsistence of the relationship. Matrimonial property owned by one’s spouse shall not be shared by a civil partner. The Court, when making its order with regard to property sharing upon dissolution of the civil partnership, takes into account the rights and interests of the spouse of the civil partner. Section 41(5) of the Marriages Act states that

(5) Where one of the persons in a civil partnership is legally married to someone else (hereinafter called the “spouse of the civil partner”), a court applying sections 7 to 11 of the Matrimonial Causes Act [Chapter 5:13] to the division, apportionment or distribution of the assets of the civil partnership shall pay due regard to the rights and interests of the spouse of the civil partner and ensure that its order shall not extend to any assets which are proved, to the satisfaction of the court, to be assets properly belonging to the spouse of the civil partner.

 

This is for general information only – please contact a Lawyer for your questions.

 

CIVIL PARTNERSHIPS

Since the enactment of the Marriages Act [Chapter 5:17] hereinafter referred to as “the Act”, there have been mixed views on the interpretation and meaning of a civil partnership amongst the general public. This article seeks to define what it is and highlights the prerequisites of such a relationship.

A civil partnership is defined in section 41 of the Act, as:

(1) A relationship between a man and a woman who—

(a) Are both over the age of eighteen years; and

(b) Have lived together without legally being married to each other; and

(c) Are not within the degrees of affinity or consanguinity as provided in section 7; and

(d) Having regard to all the circumstances of their relationship, have a relationship as a couple living together on a genuine domestic basis; shall be regarded as being in a civil partnership for the purposes of determining the rights and obligations of the parties on dissolution of the relationship and, for this purpose, sections 7 to 11 of the Matrimonial Causes Act [Chapter 5:13] shall,with necessary changes, apply on the dissolution of the relationship.

There are aspects that are taken into account when looking at the existence of a civil partnership. The court takes into account the factors listed below when making its determination on whether a civil partnership existed, including:

  • the duration of the relationship;
  • the nature and extent of their common residence;
  • whether a sexual relationship exists;
  • the degree of financial dependence or interdependence, and any arrangements for financial support, between them;
  • the ownership, use and acquisition of their property;
  • the degree of mutual commitment to a shared life;
  • the care and support of children;
  • the reputation and public aspects of the relationship.

It should be noted that a civil partnership is NOT a marriage but rather a relationship respected in terms of the laws of the country for purposes of sharing property upon its dissolution and maintenance where it applies.

This is for general information purposes – seek the advice of your Lawyer