Can one transfer a property into a Trust in Zimbabwe?

Yes, one is able to transfer a property whether movable or immovable into a Trust, more often than not a Family Trust. The process of transferring a property into a Trust in Zimbabwe like other countries is a formal process effected by the signing of the relevant and / or necessary documents. The following are some of the steps to be followed:

(a) Obtain professional advice

The first step is to obtain legal advice from a duly registered legal practitioner concerning the advantages and disadvantages of trusts. This could be in the form of a physical or virtual consultation. It is also possible to obtain a legal opinion which will guide you through the entire process. Professional advice whilst costing money in the short term, could save you a lot of money in the long run.

(b) Creation of the Family Trust

The second step is the establishment and / or registration of a Deed of Donation Trust i.e., a Family Trust into which the property will be ceded, donated and / or transferred to. The Trust Deed will contain information concerning its purpose and objectives, the founder, the trustees, the intended beneficiaries as well as provide for the management of its affairs.

(c) Select the assets to the transferred

Once the Family Trust has been established and / or registered by the legal practitioner with the Deeds Registry in Zimbabwe (either in Bulawayo or Harare) it is prudent that the movable and immovable property which is to be transferred into the Family Trust are identified.
It is important to note that the process of identifying and listing the assets (creation of an inventory) can also be done prior to obtaining professional advice or pursuant to obtaining legal advice and the creation of the Family Trust.

(d) Obtaining the relevant documents

Following the ascertainment and identification of the assets, usually in the form of an inventory, the next step is to gather all the relevant documents concerning proof of ownership. For instance, a Certificate of Authenticity (COA) in respect of art work, a certificate of Copyright Registration in respect of copyright, Share Purchase Agreements and Share Certificates in respect of shares in business entities, a Registration Certificate in respect of vessels i.e., boats and Title Deeds in respect of immovable property etc.

(e) Transfer of title / change of ownership

The next process involves the drafting and preparation of the relevant transfer documents between the current owner(s) and the Family Trust together with the payment of any applicable fees and taxes such as conveyancing fees in respect of immovable properties, municipal rates with respect to local authorities and statutory fees payable to the Deeds Registry and the Zimbabwe Revenue Authority (‘ZIMRA’).
In Zimbabwe, a deed of donation and / or contract of donation and the subsequent delivery of the donated property are considered as two separate juristic acts. Thus, the validity of a donation is not reliant upon its delivery or registration. However, and in order to avoid challenges and or limit disputes, it is important that the property whether movable or immovable (or both) be transferred into name of the Family Trust and subsequent change of ownership.