Navigating Trust Deeds in Zambia: Legal Insights and Application Process

A trust deed is a legal document in which the settlor transfers legal ownership of assets to the trustees, to hold for the benefit of the beneficiaries.

1.Legislation:

The registration of Trusts is not mandatory in Zambia. However, it is important to note a trust cannot be registered outside the governing laws. The governing laws include: 

• Trusts Restriction Act, Cap. 63 (TRA) of the Laws of Zambia
• Land (Perpetual Succession) Act, Cap. 186 of the Laws of Zambia
• The Lands and Deeds Registry Act Cap. 185 of the Laws of Zambia

Key Features of a Trust in Zambia:

• Settlor: A person or legal Entity that creates a Trust.
• Trustees: Individuals or legal entities holding property for the benefit of others.
• Beneficiaries: The individuals or legal entities who benefit from the trust.
• Trust Deed: This is a legal document that creates a trust and outlines the terms and conditions of the trust, it can also be referred as a settlement document or declaration of a trust.

2.When you might need expert help: drafting a trust deed, interpreting the terms of a trust, resolving disputes relating to a trust, incorporating a trust, and ensuring compliance with trust laws.

3.Eligibility: A trust must be created with reasonable certainty and for a lawful purpose. Under Zambian Law, the trustees have far more discretion than a settlor would prefer. As a result, the trust structures in Zambia are predominantly used by charitable organisations, religious institutions and pension funds.

4.Application Process: The application to incorporate a trust is made to the Ministry of Lands and Natural Resources through submission of the requisite documents and payment of the required statutory fees may only be made after thorough review of the documents by the legal department. The application undergoes a vetting process, and final approval is given by the Minister of Lands and Natural Resources.

• Prescribed Fees
• Timeline – the registration process takes about 4 months, provided all required documentation is submitted promptly.

5.Required Documents: 

• Two copies of Petition to the Minister of Lands.
• Ensure Petition has full names, residential addresses, NRC numbers, and signatures of all trustees.
• Petition displays the proposed Common Seal, with the word “REGISTERED TRUSTEES ENGRAVED” on it.
• Certified copy of the Certificate of registration under the Registrar of Societies (where applicable).
• Proof of appointment as Trustees.
• Certified copies of National Registration Card or Passport copies.
• Beneficial Ownership statement.
• Declaration of Compliance with the Act.
• Declaration of Knowledge of the Beneficial Owners (to be listed as such).

For professional support with trust deed registration and compliance, Corpus Globe Corporate Solutions has the expertise and is readily available to guide you through the entire process as well as ongoing compliance needs.

Below is a list of types of trusts that are permitted in Zambia:

• Trusts for minors until they reach 21 years old.
• Trusts for widows, either for life or a specific period, with property going to the children if the widow remarries. “Child” includes biological, adopted, step, or illegitimate children.
• Trusts for charities.
• Trusts for people who are mentally incapacitated or minors.
• Trusts for managing the estate of a deceased person, provided, does not violate the law.
• Trusts for managing the property of someone declared bankrupt or a company in
• Trusts for managing enemy property.
• Trusts for running pension or similar schemes.
• Trusts that can be ended by the beneficiary at any time.

Contact Us:

Phone: +260 211 296011 / 12 / 13 | +260 960 628385 | +260 770 628385 | +260 953 083688

Email: cgcso@cgcso.co.zm