In Zimbabwe,  the strategy for wealth preservation has shifted from simply “owning” assets to “protecting” them. For many Zimbabweans, the Family Trust has become the gold standard for estate planning, offering a level of security that a simple Will cannot match.

Fortifying Your Legacy: The Ultimate Guide to Trusts Registration in Zimbabwe 

1. What is a Trust?

A Trust is a legal arrangement where a Founder (the person starting the trust) transfers ownership and control of assets to Trustees. These trustees are legally bound to manage those assets for the sole benefit of the Beneficiaries.

The magic of a Trust lies in its Separate Legal Persona. Once an asset—like a house in Borrowdale or shares in a local company—is transferred into a Trust, you no longer own it in your personal capacity. The Trust owns it. This separation is the foundation of all its benefits.

2. Types of Trusts in Zimbabwe

While the law allows for various structures, most Zimbabweans utilize one of these three:

• Family Trust (Inter-Vivos Trust): Created during your lifetime. It is the most common for protecting family homes and businesses.

• Testamentary Trust: Created through a Will and only comes into existence after you pass away.

• Charitable/Educational Trust: Established for public benefit, such as running a school or a community foundation. These often enjoy significant tax exemptions.

   

3. The Registration Roadmap: Requirements & Steps

Registering a Trust is governed by the Trust Property Control Act [Chapter 8:09]. Unlike a company, which is registered at the Companies Office, a Trust is registered at the Deeds Registry.

Requirements:

• A Notarial Deed of Trust: This is the “constitution” of your trust. It must be drafted and signed before a Notary Public (a specialized lawyer).

• Trustees: A minimum of two is standard, though three is recommended for better governance. You will need their full names, IDs, and proof of residence.

• Name of the Trust: Must be unique (e.g., The Munyati Family Trust).

• The Objects: A clear statement of why the trust exists (e.g., “To provide for the education and maintenance of the beneficiaries”).

4. The Benefits: Why Register a Trust?

Why go through the effort? The benefits are substantial, especially in the current economic climate:

• Asset Protection: Because you don’t “own” the assets, they cannot be attached by personal creditors if you face a lawsuit or business failure.

• Avoiding Estate Duty: When a person dies in Zimbabwe, their estate is taxed (Estate Duty is currently 5% of the net value). Trust assets are exempt because the Trust never “dies.”

• Perpetual Succession: The Trust continues to exist across generations. It bypasses the often-lengthy “Master of the High Court” probate process that occurs when someone dies with a Will.

• Privacy: Unlike a deceased estate, which is a matter of public record, a Trust’s assets and distributions remain private.

5. Legal Issues of Putting Assets in a Trust

Transferring your life’s work into a Trust isn’t just a paper exercise; it has real legal consequences:

1. Loss of Ownership: You must be prepared to relinquish legal title. You can still live in the house as a “beneficiary,” but the Trust holds the Title Deed.

2. Transfer Costs: Moving a property into a Trust is considered a “sale” or “donation.” You will need to pay Conveyancing Fees and Stamp Duty.

3. Capital Gains Tax (CGT): Generally, moving property triggers CGT. However, under Section 16 of the CGT Act, transfers between spouses are deferred.

4. The “Sham” Trust Risk: If you treat the Trust assets as your personal piggy bank and ignore the formal rules of the Trust Deed, a court can “pierce the veil” and allow creditors to grab the assets.

6. How is a Trust Taxed in Zimbabwe?

ZIMRA treats Trusts as separate taxpayers. Under the 2026 tax framework:

• Income Tax: Trusts are taxed at a flat rate of 25% plus a 3% AIDS Levy (Effective Rate: 25.75%) on income from trade or investment.

• TaRMS Compliance: Trusts must register for a Taxpayer Identity Number (TIN) via the TaRMS portal and file annual returns.

• The Conduit Principle: A valuable tax-planning tool. If the Trust distributes its income directly to beneficiaries in the same year it is earned, that income can sometimes be taxed in the hands of the beneficiaries at their individual tax rates, which might be lower than the corporate rate.