You create a Family Trust using a special legal paper called a Notarial Deed of Trust. Only a Notary Public who practices law can prepare this document for you. After creation, someone must register this deed at the Deeds Registry Office under the rules of Deed Registries Act Chapter 20:05. The paper explains everything about how the trust works, who started it, who manages it, who benefits from it, and what goals it aims to achieve.
When you set up a Family Trust, you need several key things. First, pick a name for your trust - most people use their family name, like "Moyo Family Trust." You need founders who start the trust, trustees who run it, beneficiaries who receive its benefits, and clear goals for what the trust should do. Every trust needs these basic elements to work properly.
The founder starts the Family Trust. This can be one person or several people together. You must provide their full legal names, birth dates, ID numbers, and addresses exactly as shown on official documents. Parents or relatives usually create these trusts to benefit their children and grandchildren, including those not yet born. Founders can give property or money to the trust as a donation.
When founders donate land or buildings, the property is legally transferred from their name to the trust's name. Founders can also serve as trustees if they wish. The founders make the initial decisions about how the trust will operate and who will benefit from the assets they place in it.
Trustees manage the trust property for the beneficiaries. The property belongs to the beneficiaries, not the trustees. Every trust needs at least two trustees at all times. Many founders choose to become trustees themselves, or they pick trusted relatives or professionals who understand property management. You should select trustees who already have experience with property and business to ensure they manage the trust effectively.
The trust deed will spell out how trustees get appointed, how long they serve, how they can be removed, what payment they receive, and what duties they must perform. Trustees have legal responsibilities to act in the best interest of the beneficiaries and follow the instructions laid out in the trust document.
Beneficiaries receive the benefits from the trust. Founders donate property to these beneficiaries, but trustees handle everything for them. Most often, beneficiaries include the founders' children, relatives, grandchildren, and even children not yet born. You can name as many beneficiaries as you want since no limits exist.
Provide the full names, birth dates, and ID numbers of known beneficiaries. For child beneficiaries, you must include their guardians' information as well. The trust deed explains exactly how beneficiaries will receive their benefits and under what circumstances they can access the trust assets.
Every trust needs lawful objectives or purposes. These goals vary based on what the founders want to accomplish. Usually, the main purpose comes from the love and care founders feel toward their beneficiaries. The lawyer who serves as Notary Public typically helps write these objectives based on the founder's instructions.
You also need to pay registration fees to the Deeds Office, which the government sets, plus legal fees for the Notary Public, who prepares all the documents. These expenses represent a small investment compared to the long-term benefits and protections the trust provides for your family assets.
Family Trusts offer many advantages. They never die - this means when founders or trustees pass away or become unable to serve, the trust continues operating until trustees decide to end it according to the trust deed. Trusts also provide tax benefits. When a founder dies, the government doesn't calculate inheritance taxes on property in the trust. The assets continue as though nothing happened.
These trusts prevent family fights over inheritance. When founders die, no one distributes the trust property under normal inheritance laws. Everything stays the same, avoiding conflicts between children and relatives. Trust property also stays protected from creditors after a founder's death. If someone owes money, creditors cannot take property held in the family trust.
Trustees protect family property for beneficiaries and future generations. No child can sell or damage trust property. Since trustees provide oversight, this prevents misuse of assets and funds. All beneficiaries enjoy equal shares of any profits the trust earns. The law sees a trust as separate from the people involved with it.
Even during legal disputes against founders or trustees—whether contract issues, criminal cases, or marriage problems—the trust property remains separate. The law doesn't consider it to belong to any individual except in rare cases. Trusts can sign contracts just like people. They can operate businesses, become shareholders, trade for the beneficiaries' benefit, and buy or sell any kind of property.
When you set up a Family Trust, you need several key things. First, pick a name for your trust - most people use their family name, like "Moyo Family Trust." You need founders who start the trust, trustees who run it, beneficiaries who receive its benefits, and clear goals for what the trust should do. Every trust needs these basic elements to work properly.
The founder starts the Family Trust. This can be one person or several people together. You must provide their full legal names, birth dates, ID numbers, and addresses exactly as shown on official documents. Parents or relatives usually create these trusts to benefit their children and grandchildren, including those not yet born. Founders can give property or money to the trust as a donation.
When founders donate land or buildings, the property is legally transferred from their name to the trust's name. Founders can also serve as trustees if they wish. The founders make the initial decisions about how the trust will operate and who will benefit from the assets they place in it.
Trustees manage the trust property for the beneficiaries. The property belongs to the beneficiaries, not the trustees. Every trust needs at least two trustees at all times. Many founders choose to become trustees themselves, or they pick trusted relatives or professionals who understand property management. You should select trustees who already have experience with property and business to ensure they manage the trust effectively.
The trust deed will spell out how trustees get appointed, how long they serve, how they can be removed, what payment they receive, and what duties they must perform. Trustees have legal responsibilities to act in the best interest of the beneficiaries and follow the instructions laid out in the trust document.
Beneficiaries receive the benefits from the trust. Founders donate property to these beneficiaries, but trustees handle everything for them. Most often, beneficiaries include the founders' children, relatives, grandchildren, and even children not yet born. You can name as many beneficiaries as you want since no limits exist.
Provide the full names, birth dates, and ID numbers of known beneficiaries. For child beneficiaries, you must include their guardians' information as well. The trust deed explains exactly how beneficiaries will receive their benefits and under what circumstances they can access the trust assets.
Every trust needs lawful objectives or purposes. These goals vary based on what the founders want to accomplish. Usually, the main purpose comes from the love and care founders feel toward their beneficiaries. The lawyer who serves as Notary Public typically helps write these objectives based on the founder's instructions.
You also need to pay registration fees to the Deeds Office, which the government sets, plus legal fees for the Notary Public, who prepares all the documents. These expenses represent a small investment compared to the long-term benefits and protections the trust provides for your family assets.
Family Trusts offer many advantages. They never die - this means when founders or trustees pass away or become unable to serve, the trust continues operating until trustees decide to end it according to the trust deed. Trusts also provide tax benefits. When a founder dies, the government doesn't calculate inheritance taxes on property in the trust. The assets continue as though nothing happened.
These trusts prevent family fights over inheritance. When founders die, no one distributes the trust property under normal inheritance laws. Everything stays the same, avoiding conflicts between children and relatives. Trust property also stays protected from creditors after a founder's death. If someone owes money, creditors cannot take property held in the family trust.
Trustees protect family property for beneficiaries and future generations. No child can sell or damage trust property. Since trustees provide oversight, this prevents misuse of assets and funds. All beneficiaries enjoy equal shares of any profits the trust earns. The law sees a trust as separate from the people involved with it.
Even during legal disputes against founders or trustees—whether contract issues, criminal cases, or marriage problems—the trust property remains separate. The law doesn't consider it to belong to any individual except in rare cases. Trusts can sign contracts just like people. They can operate businesses, become shareholders, trade for the beneficiaries' benefit, and buy or sell any kind of property.
