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!
