A trust works by moving your assets out of your personal name and into a legal structure that protects them. When assets sit in your personal name, they’re exposed. If you get sued or go through a divorce, anything you personally own can be targeted. But, when the trust becomes the legal owner, those assets are no longer tied to you as an individual, so they’re far harder for anyone to claim. So to sum it all up, a trust works by allowing you to keep control and power over your assets, while removing the personal risk that comes with owning everything in your own name.

The simple answer: you do. When we set up your trust, we will help you create a legal document – a rule book – that lays out exactly who takes care of the trust, who benefits from the trust and how benefits are distributed. In this rule book, you can give yourself full control over your assets. The rule book will also mention what happens if you pass away and who will take care of the trust fund - meaning, you’ll be able to choose a family member, a professional asset management firm or leave it to a family vote; but we will obviously advise you on best practice if you decide to get started. The people that you appoint to take care of the trust after you die must follow the rules you set; if not, they can be held accountable in court. As an additional layer of protection, we can add rules that allow for  independent auditors to randomly audit the trust fund.

A trust fund allows you to set clear rules governing how your assets are managed and who may benefit from them after your passing. These rules are registered with the master of the High Court of Botswana and continue to apply across generations.

Through these Trust Rules, you may restrict the sale of trust assets (except where genuinely necessary), prevent assets from being used as collateral for personal loans, and protect them from the effects of marital relationships. This helps safeguard family assets from poor decision-making, external claims, and long-term erosion.

Our trust funds are structured in such a way that - the more a family member contributes to the trust fund- the more voting power and dividends they get. This encourages family members to actively maintain and grow the trust.

Depending on the type of Trust Fund you want, the taxes are charged in two ways:

1. Any income kept in a trust is taxed in the name of the trust itself, using the standard progressive income tax rates, or;

2. Trust income is taxed according to the beneficiary’s tax position. This means the beneficiary’s personal income and trust income are added together to determine the applicable tax rate.

   If the trust keeps the income, the trust pays the tax on it. If the income is paid to the beneficiary in the same financial year it is earned, the beneficiary is responsible for declaring and paying the tax in their personal capacity.

When you get started, we will guide you on how the taxes are handled.

Manage tax obligations: Ensure that all trust income is properly declared and that any taxes due are paid.

Submit annual reports to the Master of the High Court: Report all trust asset acquisitions and disposals each year to the Master of the High Court.

Paying dividends to beneficiaries of the trust (can include you):

Despite these formal responsibilities, very little will change in your day-to-day life. You will continue to exercise practical control over the assets, just as you do now—only with the added benefit of a structured legal framework that protects those assets from risks such as divorce, creditor claims, and legal disputes. The trust simply adds an extra layer of protection and continuity, without disrupting how you manage or enjoy your assets.

This depends on your family structure and long-term goals. Each serves a different purpose, and in many cases they work best together.

A Will sets out how your assets should be distributed after your death. It is generally simpler, more affordable, and ideal if your estate is straightforward or if you are just beginning your estate planning.

A Trust Fund is designed for long-term, generational asset protection. It is particularly useful where you own significant assets, property, or family businesses, or where you want to protect assets from divorce, creditors, or poor decision-making by beneficiaries.

In practice, many people have both: a will to deal with personal matters and any assets outside the trust, and a trust fund to hold and protect key assets over the long term. The right choice depends on your circumstances, which is why a short consultation is usually the best first step.

To illiustrate this, here is an example:

If you place assets in a company and you are sued or go through a divorce, those assets may be exposed. Shares you own in the company can form part of your personal estate, and the value of the company may be taken into account in claims against you.

However, if you place assets in a trust and you are sued or divorced, the assets are generally protected, because they are not personally owned by you. Provided the trust is properly structured and administered, the assets belong to the trust—not to you personally—making them far less vulnerable to personal claims.