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How a Family Trust may be set up in Zimbabwe

There are three ways in which a Family Trust may be set up in Zimbabwe, namely:

• Inter Vivos Family Trust

An Inter Vivos Trust is a Trust which is set up during the lifetime of the Founder. It is also known as a Living Trust. An Inter Vivos Family Trust is set up by way of a Notarial Deed of Trust which is drawn up by a Notary Public. It is set up during the lifetime of the founder and movable and immovable property is generally donated to the Family Trust during the lifetime of the Founder. It is managed by Trustees for the benefit of the beneficiaries.

• Testamentary Family Trust

In contrast to a Inter Vivos Family Trust, a Testamentary Trust is set upon the death of the Founder who makes a provision for the establishment of a Family Trust in their Last Will and Testament (“Will”).

This type of Family Trust does not come into existence except upon the death of the Testator / Founder. It is essential when one is drawing up the Will to ensure that it caters for provision to do with: (a) the proposed name of the Family Trust; the proposed Trustees of the Family Trust and the Beneficiaries of the Family Trust.

• Court Order

In Zimbabwe, a Court Order may create a Family Trust. In many divorce settlements involving minors, parties often agree to the formation of a Family Trust to be administered on and for the benefit of the children. see The Benatar Children’s Trust v Benatar HH 124-17.