HOW TO CREATE A TRUST IN GHANA: A STEP-BY-STEP GUIDE (2026)
Why Trusts Matter in Ghana Today
Trusts are increasingly becoming a core pillar of wealth structuring, succession planning, and family governance in Ghana. Once viewed as tools reserved for ultra-high-net-worth families, trusts are now being adopted by entrepreneurs, professionals, diaspora families, and philanthropists seeking long-term asset protection, continuity, and control.
In an environment where businesses outlive founders, families grow across generations, and assets span jurisdictions, a trust offers something that traditional ownership structures do not: governance beyond the individual.
This guide explains, in clear and practical terms, how to create a trust in Ghana, what legal principles apply, and how to structure it correctly to avoid common pitfalls.
What Is a Trust Under Ghanaian Law?
A trust is a legal arrangement (in lifetime, or upon death) under which assets (money, property, investments) are transferred by one person (the Settlor) to another (the Trustee) to hold and manage for the benefit of one or more Beneficiaries, in accordance with the terms of a Trust Deed. This separates the legal ownership (Trustees) from the right to enjoy the assets (Beneficiaries) for a specific purpose or period. Simply put, it’s essentially giving assets to someone (Trustee) to manage responsibly for someone else (the beneficiary)
Under Ghanaian law, trusts are governed primarily by:
Common law principles of equity
Contract law
Fiduciary obligations
Relevant statutory provisions such as the Companies Act 2019 (Act 992), the Trustees (Incorporation) Act 1962 (Act 106)(including tax, mental health, and corporate law where applicable)
A defining feature of a trust is the separation of legal ownership and beneficial interest:
Trustees hold legal title to the trust property
Beneficiaries hold equitable interests, subject to the trust terms
The trustee has the power and the duty, in respect of which he is accountable, manage, employ, or dispose of the assets in accordance with the terms of the trust and the special duties imposed on him by law.
Trustees owe fiduciary duties, including duties of loyalty, care, and good faith, and must act strictly in the best interests of the trust and its beneficiaries.
Types of Trusts Commonly Used in Ghana
While trusts can be tailored extensively, the following structures are most commonly used:
1. Living (Inter Vivos) Trusts
Established during the lifetime of the settlor and falls in the category of an express trust . These are widely used for:
· Wealth preservation
· Family governance
· Business continuity
· Asset holding
2. Testamentary Trusts
Created under a will and comes into effect upon death. Often used where assets are intended for minors or vulnerable beneficiaries.
3. Discretionary Trusts
Trustees retain discretion over distributions. Beneficiaries have no automatic entitlement, making this structure ideal for:
· Asset protection
· Flexible family support
· Tax and governance planning
4. Charitable or Public Benefit Trusts
Established exclusively for charitable or philanthropic purposes, often structured alongside Companies Limited by Guarantee (CLGs).
5. Resulting Trust
An implied trust that arises by operation of law when beneficial ownership of property returns (or “results back”) to the person who provided the purchase money or transferred the property, rather than passing to the intended recipient. (Westdeutsche Landesbank v Islington LBC 1996 AC 669.)
Key Parties to a Trust Explained
The Settlor
The person who establishes the trust and contributes the initial trust assets. Once the trust is constituted, the settlor should not retain control inconsistent with fiduciary independence.
The Trustees
Trustees are the legal owners of the trust assets and are responsible for:
· Managing assets
· Making distributions
· Ensuring compliance with the trust deed and law
Trustees carry personal fiduciary responsibility and should be appointed with care.
The Beneficiaries
Beneficiaries are the persons or classes of persons for whose benefit the trust exists. In discretionary trusts, beneficiaries have no vested rights unless and until distributions are made.
Step-by-Step Process to Create a Trust in Ghana
Step 1: Clarify the Purpose and Objectives of the Trust
Every trust must have a clear purpose. Common objectives include:
· Wealth preservation across generations
· Family governance and succession
· Holding business or investment assets
· Supporting charitable or public benefit activities
Clear objectives guide drafting, trustee powers, and distribution policies.
Step 2: Identify the Trust Assets
Trust property may include:
· Cash
· Shares or securities
· Real estate
· Business interests
· Future or contingent assets
· Etc
Importantly, assets do not always need to be transferred immediately. Many trusts are established first, with assets introduced over time.
Step 3: Appoint Trustees (and Alternates)
Trustees may be individuals or corporate bodies. Considerations include:
· Integrity and competence
· Independence
· Continuity
· Understanding fiduciary duties
Professional trustees or co-trustees are often advisable where asset values are significant or family dynamics are complex.
Step 4: Define the Beneficiaries
Beneficiaries may be:
· Named individuals (e.g. children)
· Classes (e.g. descendants)
· Charitable causes
· Etc
Careful drafting is essential to avoid unintended entitlements or regulatory conflicts, especially where a trust operates alongside a Company Limited by Guarantee.
Step 5: Draft the Trust Deed
In simple terms, the Trust Deed (or deed of Trust) is the governing legal document that acts as the “rulebook” and “security manual” for a trust. It is essentially a formal agreement where one party holds assets for the benefit of another and should be professionally drafted. Key provisions include:
· Objects of the trust
· Trustee powers and duties
· Distribution mechanics
· Governance and meetings
· Trustee removal and indemnity
· Dispute resolution
· Reporting and accounts
Without a registered trust deed, the trust will fail and not be recognized by law as it clearly defines ownership and responsibilities of the Trust.
Step 6: Execute and Formalise the Trust
Execution typically involves:
· Signing by the settlor and trustees
· Witnessing
· Stamping and notarisation where required
At this point, the trust becomes legally effective.
Step 7: Consider Supporting Structures (Trust + CLG)
In many cases, a Company Limited by Guarantee is incorporated to:
· Act as an operating or holding vehicle
· Ring-fence liability
· Enhance governance and reporting
· Interface with regulators and third parties
This structure is particularly effective for philanthropic, educational, and family-office-style arrangements.
Governance, Reporting, and Compliance
Properly structured trusts are governed like institutions, not personal arrangements. Best practice includes:
· Regular trustee meetings
· Written resolutions and minutes
· Annual accounts and reports
· Clear separation of trust and personal assets
· Compliance with Ghana Revenue Authority obligations
Strong governance protects trustees and beneficiaries alike.
Common Mistakes When Setting Up a Trust in Ghana
· Using generic templates
· Appointing unsuitable trustees
· Allowing settlors to retain excessive control
· Poor beneficiary drafting
· No dispute resolution or indemnity clauses
· Ignoring tax and reporting obligations
Trusts are not “set-and-forget” instruments.
Who Should Consider Setting Up a Trust?
· Entrepreneurs and business owners
· Families with growing or complex assets
· Diaspora families with Ghanaian interests
· Philanthropists and foundations
· Family offices and investment holding structures
Costs, Timelines, and Professional Support
Trust setup costs vary depending on:
· Complexity
· Number of trustees
· Governance structures
· Supporting entities (e.g., CLG)
Timelines typically range from 2 to 6 weeks for proper structuring and execution.
A trust is not merely a legal document; it is a governance framework. When properly structured, it protects assets, reduces conflict, and ensures continuity across generations.
However, the strength of a trust lies not in its existence, but in how it is drafted, governed, and administered.
Speak to Scribe Advisory
Scribe Advisory & Consulting provides:
· Trust structuring and drafting
· Professional trustee and co-trustee services
· Company Limited by Guarantee incorporation
· Ongoing governance and reporting support
If you are considering setting up a trust in Ghana, consult with us to ensure it is structured correctly from the outset. We also have a page here that discusses the differences between a Will and a Trust.