Zimre Group Pension & Life Assurance
Scheme
Members Individual Family Trusts
As part of retirement planning for the Zimre Group Pension Fund members, the Board of Trustees of the fund have approved a scheme where,
The Zimre Group Pension Fund in partnership with Marufu Attorneys - At-Law, will help active Pension Fund members create individual Family
Trust Funds.
The initial set up costs will be carried by the fund, but members will meet the periodic administrative costs such as amendment fees, should they
decide to amend it. This offer is only available to all eligible (contributing) members of the Pension Fund.
What is a Trust?
A Trust exists where a founder hands over to a trustee(s) the
control of property which is to be administered for the benefit
of the beneficiaries. A good example is when parents donate
a house/property for the benefit of their children.
Why a Trust?
1. A Trust is a vehicle that can be used to protect assets,
direct them into the right hands in the present and in the
future, resulting in the property being secured even long
after the original asset owner's death.
2. A Trust is a legal entity employed to hold property, so the
assets are generally safer than they would be with an
individual. Even a relative with the best of intentions
could face a lawsuit, divorce, or other misfortune, putting
those assets at risk.
3. Some individuals use trusts simply for privacy. The
terms of a will are public in some jurisdictions. The same
conditions of a will may apply through a trust, and
individuals who don't want their wills publicly posted opt
for trusts instead.
4. Trusts can also be used for estate planning. Typically,
the assets of a deceased individual are passed to the
spouse and then equally divided among the surviving
children. However, children who are under the legal age
of 18 need to have trustees. The trustees only have
control over the assets until the children reach
adulthood.
5. Trusts can also be used for tax planning. In most cases,
the tax obligations for Trusts are lower compared to
other alternatives. For instance, if one dies and leave
behind a will or if they die without a will, there are taxes
payable for an estate to be wound up as the Master's
fees, Executor's fees and government duty which are
not due if one creates a trust. In some cases,
beneficiaries end up selling some assets to raise the
required fees. As such, the usage of Trusts has become
a staple in tax planning for individuals and even for
corporations.
6. Assets in a Trust benefit from a step-up in basis, which
can mean a substantial tax savings for the heirs who
eventually inherit from the trust. By contrast, assets that
are simply given away during the owner's lifetime
typically carry their original cost basis.
How does trust work?
Requirements
• Founder(s)' full name, ID numbers and addresses
• Trustee(s)' full name, ID numbers and addresses
• Beneficiaries' full details
• Proposed name of the Trust
• Details of trusts objects (i.e. properties to be donated to
the trust-note that even if assets are not readily available
one can create a trust and put the property in trust at a
later stage)
• Registration fees
How long does it take register a trust?
Once you furnish the lawyers with all the information
required, the process take about 10 working days to be
completed
Other legal processes that must be done after
registration of the trust.
Properties that were donated to the trust should be
transferred into the ownership of the Trust. This process can
be done at any stage after the Trust is registered. Should
someone die before the transfer is done, this process can
always be finalized by the Trustees.
Are Trustees paid remuneration for their services?
This depends on the terms of the Trust Deed, but family
trusts' trustees do not necessarily have to be paid as they are
usually close family members such as spouse, children, or
close relative. In some instances, one may opt to appoint a
professional as a trustee in which case there may be
remuneration payable. The Trust Deed usually stipulates
whether they will be paid allowances for expenses incurred
while doing services for the benefit of the trust.
Who can be appointed as Trustees?
A family trust is a creation of a family and therefore, the
founder nominates and appoints trustees of his choice. The
board of trustees may also be given powers to appoint
trustees for the duration of the trust and the trust deed
provides the procedures to be followed in coming up with the
rightful candidates. If the board of trustees cannot appoint the
trustees for whatever reason, the court can be roped in to
assist.
Who supervises and monitors Trustees?
The Trust Deed sets out the parameters in which Trustees
are expected to abide by. It sets out their obligations and
duties to the Trust, and If they do not abide by, they will be
removed from their positions as trustees. They may even be
sued by the trust itself or its beneficiaries for overstepping or
for being negligent in the execution of their duties and
obligations.
Who has the mandate to dissolve a family trust?
A family trust is normally given a lifetime by the founder and
the detail of the dissolution is in terms of the procedures to be
followed will be stipulated in the trust. However, it is wise to
give it perpetual existence so that the assets can benefit
generations.
Who will have custody of the Trust deed?
Once a Trust has been registered, the original copy of the
deed will be filed with the Deeds Office both in Harare and
Bulawayo. The founder and the Notary Office will have
copies too.