Gabael Trust v2

Tag: Family Trust

  • Revocation of Wills

    [vc_row][vc_column][vc_column_text]A Will is an essential and one of the simpler forms of estate planning tools. It is a legal declaration by a person of their wishes or intentions regarding the disposition of their property after death.

    The provisions of a Will are not cast in stone. They can be amended or updated from time to time in order to reflect a person’s changing life circumstances using a codicil (written amendments to a will). A Will can also be cancelled or revoked altogether.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What is Revocation of a Will?

    Revocation of a Will refers to the process cancelling or annulling a Will. A Will can only be revoked or cancelled by the person who created it (the testator) at any time before their death.

    Additionally, a Will can only be revoked while the testator is alive and has the mental capacity to do so. Once the testator has passed away, the Will cannot be revoked or amended in any way.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What does the law provide on Revocation of Wills?

    Revocation of Wills in Kenya is covered under section 17, 18 and 19 of the Law of Succession Act.

    Section 17 of the Law of Succession Act provides that:

    “A will may be revoked or altered by the maker of it at any time when he is competent to dispose of his free property by will.”

     Section 18 of the Law of Succession Act provides for the voluntary revocation of Wills. It provides that:

    “Save as provided by Section 19, no will or codicil, or any part thereof, shall be revoked otherwise than by another will or codicil declaring an intention to revoke it, or by the burning, tearing or otherwise destroying of the will with the intention of revoking it by the testator, or by some other person at his direction.

    A written will shall not be revoked by an oral will.”

    Based on section 18 above, a written will cannot be revoked by an oral will. It can only be revoked by another new Written will.

    Involuntary revocation of Wills is stipulated under Section 19 of the Law of Succession Act. Section 19 provides that:

    A will shall be revoked by the marriage of the maker; but where a will is expressed to be made in contemplation of marriage with a specified person, it shall not be revoked by the marriage so contemplated.”

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    What are the forms of Revocation of Wills?

    Based on the above legal provisions, a Will can be revoked in the following ways:

    1. By executing a subsequent will:

    If a person executes a new will, it automatically revokes all previous wills and codicils (written amendments to a will).

    For avoidance of doubt, it is common practice that the new Will explicitly states that all other previous Wills and Codicils made by the maker of the will are revoked. This would ordinarily appear in the Will as indicated below;

    “I revoke all former wills and testamentary dispositions made by me”.

    1. By physical act:

    A Will can be revoked by cancelling, tearing, burning or destroying it with the intention of revoking it.

    1. By operation of law:

    A Will can be revoked by operation of law in the case of a new marriage by the maker of the Will unless it is made in contemplation of marriage as provided in section 19 of the Law of Succession Act highlighted above.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What are the consequences of Revoking a Will?

    Once a Will is revoked by the testator, it automatically ceases to exist. In the event the testator dies without making a subsequent Will, his or her properties will be distributed to his or her beneficiaries in accordance with the laws of Intestacy (when someone dies without leaving a valid will) as provided under the Law of Succession Act.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    How can we help?

    Gabael Trust Corporation Limited has established itself as a ‘go-to-firm’ that provides premier estate planning services in Kenya. We also provide value-added services such as advice on investment, tax and retirement that may be critical for your Will.

    We have an excellent team of experts and strategic partners across the East African Region who are ready to meet your unique estate planning needs and we welcome you to take advantage of our excellent, professional and cost-effective services.

    [/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Updating of Wills

    [vc_row][vc_column][vc_column_text]It goes without saying that creating a valid Will is very important and should be done at the earliest opportune time.

    Once you create your Will, its provisions are not cast in stone. Your Will can be updated from time to time to incorporate any changes in circumstances or major life events.

    Before updating your Will, it is advisable that you consult your lawyer or trusted estate planner to ensure that you follow all the formal requirements prescribed in law.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    When should I update my Will?

    The Law of Succession Act in Kenya provides that a person can update their Will at any time as long as they are mentally competent to do so.

    Proof that the amendments to a Will were made as a result of coercion, fraud or when a person was under the influence of drugs or alcohol may lead the amendments to be declared void.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Why should I update my Will?

    A person should update their Will when there is a significant change in their personal or financial circumstances. Some common reasons for updating a Will include:

    1. Marriage or divorce;
    2. Birth or adoption of a child;
    3. Death of a beneficiary or executor of the Will;
    4. Change in assets or liabilities;
    5. Move to a different country; or
    6. Change of mind regarding distribution of assets.

    It is important to regularly review and update your Will to ensure that your final wishes are accurately reflected and your assets are bequeathed as per your wishes and intentions.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What are the formal requirement of updating my Will?

    The Law of Succession Act in Kenya provides that a person can update their Will by executing a codicil (a written amendment to the Will) or by making a new Will entirely.

    The codicil should be signed in the same manner as the original Will, that is, it should be signed by the maker of the Will in the presence of two independent witnesses who should also attest that they saw the maker of the Will sign the codicil.

    Similarly, a new Will must also be signed and witnessed in the presence of two independent witnesses and should clearly indicate that it revokes all previous Wills and codicils made by the maker of the Will.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What are the advantages of Updating my Will?

    Some of the advantages of updating a Will include: –

    • Reflects current wishes:

    Updating a Will ensures that it reflects a person’s current wishes and intentions for the distribution of their assets.

    • Avoids confusion:

    An outdated Will can lead to confusion and disputes among beneficiaries. Updating a Will can avoid these issues by clearly outlining the maker’s final wishes.

    • Protects beneficiaries:

    Updating a Will can protect beneficiaries by ensuring that they receive their intended inheritance and minimize the chance of challenges or disputes.

    • Accommodates changes in family or financial circumstances:

    Changes in family dynamics or financial circumstances can be accommodated by updating a Will. This can help ensure that the maker’s assets are distributed according to their current intentions.

    • Facilitates the probate process:

    An up-to-date Will can facilitate the probate process and reduce the chance of challenges or delays in obtaining the grant and overall distribution of assets to the intended beneficiaries.

    All in all, updating a will can provide peace of mind and ensure that a person’s final wishes are accurately reflected and carried out.

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    How can we help?

    Gabael Trust Corporation Limited has established itself as a ‘go-to-firm’ that provides premier estate planning services in Kenya. We also provide value-added services such as advice on investment, tax and retirement that may be critical for your Will.

    We have an excellent team of experts and strategic partners across the East African Region who are ready to meet your unique estate planning needs and we welcome you to take advantage of our excellent, professional and cost-effective services.

    [/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Estate Planning Through Wills.

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    The Law of Succession Act, Cap 160 provides for two forms of wills: –

    1. Written wills
    2. Oral wills.

    For any form of will to be valid, the maker of the will must have had the mental and testamentary capacity to make it. This means that the maker of the will must: –

    1. Be of sound mind
    2. Have mental recollection of their property (movable and immovable) and beneficiaries (children, spouse (s) and dependents); and
    3. Be of sound understanding such that they know and have the intention of making a will.

    Of note is that it is a rebuttable presumption in law that the maker of a will was of sound mind unless proven otherwise in a court of law.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Written Will

    A written will is a legal document that indicates how your property will be distributed among your beneficiaries after you pass away. It can also indicate your preferred guardian for your child, your funeral wishes or preference, for example, by cremation or burial, among others.

    The Law of Succession Act does not impose any restrictions on the language of will or the type of material the will should be written in. The language of the will can be English, Swahili or your mother tongue and it can be handwritten or typed.

    The above notwithstanding, the Law of Succession Act provides for certain formal requirements that have to be met for the will to be valid. They include: –

    1. The maker of the will has to sign or affixed his or her mark to the will
    2. The signature or the mark of the maker of the will has to be placed in such a position as to show that he or she intended to give effect to the will
    3. The will is formally witnessed by two or more competent witnesses, each of whom must see the maker of the will sign the will or receive a personal acknowledgement from the maker of the will that the signature or mark is his or hers.

    It is important to note that the persons who witness a will must do so in the presence of the maker of the will. However, it is not necessary for both witnesses to be present at the same time while witnessing the will.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Oral Will

    An oral will is simply a verbal statement of wishes that expresses how you property will be distributed among your beneficiaries.

    The Law of Succession Act provides that for an oral will to be valid, it has to be made before two or more competent witnesses and the maker of the oral will has to have died within a period of three months from the date of making the will.

    An oral will is often made when a person has founded reasons to believe that they may pass away soon, for example, someone who is terminally ill or is in fear of their life. Nevertheless, it is not advisable to make an oral will as it relies on human memory and the witness’s may misrepresent your wishes.

    Of note, if the maker of an oral will is a member of the armed forces or merchant marine, the oral will is valid if it meets the following requirements: –

    1. The oral will should be made during a period of active service;
    2. The oral will should be made before at least one competent witness;
    3. The maker of the will should have died during the period of active service (this period can be more than three months after the date of making the will).

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    How Can We Help?

    Gabael Trust has established itself as a ‘go-to-firm’ that provides premier corporate trustee, corporate administrator and corporate executor services in Kenya. We also provide value-added services such as advice on investment, tax and retirement that may be critical for your Family Trust.

    We have an excellent team of experts and strategic partners across the East African Region who are ready to meet your unique estate planning needs through wills and trusts. We welcome you to take advantage of our excellent, professional and cost-effective services.[/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Discretionary Trust; The Best Estate Plan for your Child

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    Parents are always concerned about the well-being of their children especially when they are highly dependent minors that require constant specialized care.

    Often, their primary concern is how to come up with the best plan to ensure that their child is well taken care of in the event they become incapacitated or when they eventually pass away. This can be done through establishing a discretionary trust through which they can put in place financial arrangements for the future care and well-being of their children.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]What is a Trust?

    A trust is a legal arrangement through which a parent can appoint a trusted person (a trustee) to hold and manage the funds or assets transferred to the trust (the trust fund) for the benefit of a specified person, in this case their child or children.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]What is a Discretionary Trust?

    The word discretion refers to a person’s ability to act as per their own judgment and conscience. In a trust arrangement, the power of discretion is usually exercised by the trustees while undertaking their duties in the discretionary trust and ought to be done with utmost good faith and in the best interest of the beneficiaries.

    Based on the above definition, a discretionary trust can be defined as a flexible trust arrangement that enables the trustees to exercise their fair judgement while exercising their duties in the trust deed, in order to meet the beneficiaries’ changing circumstances.

    Due to the wide discretionary powers given to trustees, it is always advisable for a parent to prepare a letter of wishes to accompany the discretionary trust. A letter of wishes usually sets out the parent’s primary requests with regard to the distribution of the trust fund to their children. For example, it can indicate that the child should only receive benefit from the trust after obtaining their first degree or that a large portion of the trust fund should be used to cater for the specialized care of a disabled child, etc…

    [/vc_column_text][vc_empty_space height=”20px”][vc_column_text]What are the defining features of a Discretionary Trust?

    There are three essential features that make a discretionary trust the most preferred form of family trust for parents of minors, children living with disability or unruly children. They include:

    • Flexibility;

    It may be difficult for a parent to predict their children’s future interests and needs while creating the trust. Therefore, by establishing a discretionary trust, the trustees can be able to meet the child’s evolving financial needs in health care, education, sports and any other legitimate activity that may require financing by the trust.

    • Protection;

    A discretionary trust provides protection to the beneficiaries from their own extravagant choices. For example, it allows the trustees to halt the distribution of trust income to a child especially when the parent had raised concerns about the child’s wasteful lifestyle and there is real concern on how they would cope after inheriting large sums outright. In such a case, the trustees are at liberty to hold and manage the assets of that beneficiary on their behalf and provide occasional and controlled benefits to them.

    • Adaptability

    A discretionary trust enables the trustees to adapt to the child’s changing health care, education and extracurricular requirements as their powers of distribution of trust fund are not cast in stone. It also makes it easier for the trustees to take advantage and align the trust to any future changes in legislation that may be of benefit to the trust.

     

    What is the importance of creating a discretionary trust for your child?

    Clients with young children often do not wish their children to inherit substantial assets at a young age. Many would prefer their children to have obtained a degree, have established careers or have an understanding of financial matters, before they can obtain any benefit from the trust.

    In addition, when children are very young it is difficult to anticipate their future needs, some children may require more assistance than others. Discretionary trusts facilitate a wait and see approach, enabling parents to choose responsible individuals to assume the guardianship role for their child at a later stage. It also allows the trustees to quickly adapt and facilitate to the changing needs of the child.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]What are the drawbacks of creating a discretionary trust?

    Most may argue that discretionary trusts donate wide and unfettered discretionary powers to trustees. Such unfettered control of trust assets by trustees may lead to self-dealing, self-enrichment or general abuse of power by trustees to the detriment of the beneficiaries.

    Nonetheless, this can be mitigated by the parent by writing a letter of wishes indicating their primary requests for the welfare of their child or by appointing an enforcer in accordance with the Trustee (Perpetual Succession) Amendment Act of 2021.

    An enforcer is a company or an individual who can be appointed in the trust to monitor the administration of the trust for the benefit of their children. Even though it is not a mandatory role, it may be prudent to include an enforcer in the discretionary trust as they can exercise a supervisory role over the trustees with the mandate to:-

    1. Inquire into the status of implementation of the terms of the trust;
    2. Require the trustee to remedy any breach of the terms of the trust; and
    3. Pursue legal action against the trustees for such breaches.

    It is important for the the enforcer of the trust to be different from the trustee(s), therefore, the two offices cannot be occupied by the same person.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]How can we help?

    A parent can ensure the proper administration of their discretionary trust by appointing a corporate trustee as a trustee, solely or jointly with other trustees, or as an enforcer whose mandate is to ensure adherence of the Trust Deed. Gabael Trust Corporation is an independent and reliable corporate trustee that provides premier estate planning, trust management and trust administration services and can be appointed as enforcer to ensure the proper administration of your trust.

     

    Get in touch with us today to take advantage of our excellent and cost-effective services.

     

    Karibu Gabael.

    [/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Duties of Trustees in your Family Trust

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    Who is a Trustee?

    A Trustee is a person that is given the legal responsibility to manage, administer and/or hold property for the benefit of another person. He or she is usually appointed in accordance with the terms of the trust deed whereafter he must act in the best interest of the trust while undertaking his duties.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Who can be appointed as Trustee?

    The person who creates the trust (hereinafter called “the settlor”) is often appointed as the first Trustee, solely or jointly with other persons, until they resign, die or become incapacitated and are succeeded in accordance with the terms of the trust deed. In addition to the settlor, the following persons can be appointed as Trustee: -[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    • Friends or Peers;
      The settlor is at liberty to appoint any of his trusted friends or peers as trustee so long as they are above the age of 18 years and are of sound mind.  Since the position of trustee requires constant interaction with the settlor’s family members, the settlor should select the most responsible, reliable and amiable friend to be a trustee.
    • Relatives;
      Most settlors appoint their family members to be a trustee in their family trust especially when they have minor children. Although this is the preferred approach, the settlor should be wary of potential family drama or resentment that may arise during the administration of the trust. To prevent this, settlors should apprise themselves of their family member’s character and capabilities to be sure that the relative is up to the task or appoint an independent trustee (e.g. a corporate trustee) jointly with the relative trustee.
    • Trust Corporation;
      Hiring a trust company like Gabael Trust Corporation can be a great option for settlors for many reasons. Trust companies are often independent and reliable and are able to take a stern, matter-of-fact approach while managing the settlor’s estate per the discretion and guidance of the Trust. This in turn safeguards the settlor’s legacy and reduces cases of mismanagement of the Trust.

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    What are the general duties of a Trustee?

    A Trustee owes a duty of honesty, integrity, loyalty and good faith to the beneficiaries of the trust.  He or she should also be prepared to undertake the following duties during their tenure as trustee as per the terms of the trust deed: –

    • Act as a fiduciary:

    The role of a fiduciary is one that is held in high regard because it entails acting in good faith while protecting the investments of the trust and undertaking the distribution of the trust assets. This core duty requires the trustees not to place themselves in a position where their duty and interest may conflict with their duties in the trust.

    • Ensure the safety of trust assets:

    Having read and understood the contents of the trust deed, the trustee should manage the trust assets accordingly making sure to keep proper and accurate record of all dealings with the trust assets.

    • To observe the terms of the trust deed:

    Trustees must read, understand and strictly comply with the duties and directions set out in the trust deed.

    • To act impartially between the beneficiaries

    Trustees must balance competing interests between beneficiaries and not allow one beneficiary to suffer at the expense of another. He or she must treat all beneficiaries with equal respect and dignity.

    • To provide accurate information

    Trustees are under a duty to provide clear and accurate accounts and produce any information, or other documents relating to the trust when required to do so by a beneficiary.

    • To exercise reasonable care and ensure the correct distribution of assets.

    Trustees must ensure that the assets of the trust vest to the beneficiaries in accordance with the distribution model of the trust.

    • Not to profit from the Trust

    A trustee is not permitted to gain any benefit directly or indirectly from the Trust, for example, a trustee is normally not permitted to purchase Trust property.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What constitutes breach of duties by Trustees?

    Below are some reasons why a trustee may be sued for breach of their duties as per the terms of the trust deed:-

    • When the trustee refuses to produce proper accounts or provide updates of all dealings, investments, transfers or pay-outs of the trust funds or trust property to the beneficiaries.
    • When the trustee embezzles funds from the trust;
    • When the trustee engages in self-dealing –this includes actions such as purchasing assets from the trust, borrowing from the trust even if the trustee repays the borrowed funds or investing the trust funds in their personal businesses, to name a few.

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    How can we help?

    Due to the challenges and complexities that can arise in the day to day administration of trusts, it is advisable for appointed trustees to seek professional help. At Gabael, we have an excellent team of experts and strategic partners across the East African region who can advise you, as necessary, on the nature and extent of your powers and duties as a trustee. We can also be appointed, solely or jointly with other trustees, to offer reliable and independent trustee services

    Get in touch with us today to take advantage of our excellent and cost-effective services.

     

    Karibu Gabael.[/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Why Appointing a Corporate Trustee is the Right Move for You

    [vc_row][vc_column][vc_column_text]When establishing a family trust, one of the most fundamental decisions you will have to make is on who will serve as trustees of your Trust.

    A trustee can be an individual or a company that is appointed by the settlor (the founder of the trust) for purposes of holding or managing and/or administering the trust assets on behalf of, and for the benefit of the intended beneficiaries. A company that is licensed to provide trustee services is known as a corporate trustee.

    Off the top of your head, you may have a few people in mind such as your relatives, a close friend or your lawyer who you may want to appoint as the trustees of your family trust. However, there are several reasons why it is advisable to appoint a corporate trustee solely or jointly with your proposed individual trustees.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]These include: –

    1.     Perpetual Succession: –

    Unlike individual trustees, a corporate trustee has perpetual succession which simply means that it does not die. In addition, it is not limited by old age, physical or mental incapacity or supervening personal responsibilities that may otherwise prevent it from undertaking its duties.

    For this reason, appointing a corporate trustee solely or jointly with other individual trustees ensures the continuity and timely administration of the trust such as a dynasty trust (a trust that is established to preserve family wealth and continue for several generations).[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    2.      Reliable and Professional Services: –

    The appointment of a corporate trustee safeguards your estate and ensures that you access the right expertise and professional services required for the effective administration of the trust.

    Unlike individual trustees who may not have the requisite skill set to administer the trust, corporate trustees have the benefit of drawing from its skilled, experienced and professional team to ensure that its clients enjoy reliable and professional services. In addition, since corporate trustees are corporate bodies with perpetual succession, the beneficiaries can be able to hold them to account in the unlikely event of unprofessional conduct or breach of trust.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    3.     Ensure that your loved ones are not unduly burdened: –

    Appointing a corporate trustee for your family trust relieves your loved ones of the additional burden of managing and administering the trust being as they may already be committed in their personal businesses or are in full-time employment. Such divided attention may cause laxity in undertaking trustee duties and expose the trust to mismanagement, tax liabilities or other legal liabilities.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    4.     Prevent Family Wrangles

    The unity of family members is key to sustaining the family trust and strengthening the relationships within the family. If the trustee is a family member and the beneficiaries do not agree with his or her actions or decisions, this could lead to bitter conflicts within the family. In addition, due to their close familial ties, the trustees may be afraid to make professional but unpopular decisions which are in the best interest of the trust, for fear of severing their relationship with the beneficiaries.

    On the other hand, a corporate trustee is an innate body that cannot have such relationships and therefore appointing it can help prevent family disagreements over your estate.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    How we can help

    Gabael Trust Corporation Limited is a full-service premier company that provides independent and client-centric fiduciary and corporate trustee services in Kenya. We can be appointed to act as corporate trustee in your family trust, charitable trust and non-charitable trust, jointly or solely with other individual trustees. We also offer trust protection services by acting as an Enforcer to ensure that your trustees fully comply with the terms and conditions of your trusts and that they do not engage in any breach of trust or other malfeasance.

    At Gabael, our clients are our first priority and we welcome you to take advantage of our excellent, professional and cost-effective trustee services. Get in touch with us today![/vc_column_text][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • A Family Trust as a Tool for Protection of Family Wealth

    [vc_row][vc_column][vc_column_text]You have worked hard to acquire valuable assets or you have established your family business which has grown to be a successful enterprise. You are wondering how can you protect your wealth and eventually pass it down to future generations. This is where estate planning comes in.

    Estate planning is the process by which an individual or family arranges the transfer of their estate in anticipation of death. Your estate is comprised of everything that you own; this includes movable, and immovable assets, as well as tangible and intangible assets. Regardless to its size or quantum, everyone has an estate that would require to be administered upon death.

    An estate plan is important because it: –

    • Enables you elect your heirs or beneficiaries (that is, those who will inherit what from your estate
    • Gives you the ability to name your children’s guardian in the event of your premature death
    • Enable you protect your estate from creditors
    • Enable you reduce taxes on your estate; and
    • Minimizes the chances of family strife and ugly legal battles

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    Wills, Trusts and Power of Attorney

    Wills, trusts and Power of Attorney are common tools used by individuals for estate planning.

    A will takes effect when you die and its contents may include: how your estate will be shared or distributed; who will look after your children if they are still young; what trust you intend to establish thereunder; donations to charities; and even instructions about your funeral.

    It is paramount that your will is valid and is up to date as your legal rights and status changes- especially if you marry or remarry, divorce or separate; have children or grandchildren; if your spouse or beneficiaries dies; if you have significant changes in your estate or sell any of the assets previously covered in your will.

    If you die without a will (that is, intestate) or your Will is declared invalid by a court of law, your estate will be managed and administrated by a court appointed administrator(s) in accordance with the provisions of the Law of Succession Act, Chapter 160 of the Laws of Kenya. This process may be lengthy, uncertain and costly.

    Testamentary Trust is a trust created under your Will and only takes effect upon your death. Such trusts are normally set up to protect assets and will be administered by a trustee or trustees who is/are usually appointed in the Will. A testamentary trust would generally be created or established if:

    • The beneficiaries are minors (under 18years old)
    • The beneficiaries have diminished mental capacity
    • You do not trust the beneficiaries to use their inheritance wisely
    • You do not want family assets split for instance as part of a divorce settlement; or
    • You do not want family assets to become part of bankruptcy proceedings.

    Another tool that can be employed in estate planning is power of attorney. This can be used where you want someone (your appointed power of attorney) to have legal authority to look after your affairs on your behalf, for instance in case of incapacitation due to hospitalization.

    We shall look briefly at the establishment of family trusts in Kenya.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What is a Family Trust?

    A trust, by definition, is a three- party relationship where you or the person creating the trust (usually called the settlor or grantor) transfer some assets like money or property (normally called the trust funds) to a third party (usually called the trustee) to be manager and administered on behalf of some third parties (called the beneficiaries).[/vc_column_text][vc_column_text]A family trust is a legally binding estate planning tool that is established to financially secure and protect you and your family. Family trust, unlike wills, have the benefit of avoiding probate, a lengthy and costly legal process that oversees the transfer of assets. Sometimes, though, it might be advisable for the grantor to make some inter-vivos gifts (gifts made while the grantor or donor is alive) in order to provide for some beneficiaries or minimize or avoid taxes.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What is the purpose of a Family Trust?

    The purpose for a family trust is to establish a legal mechanism where your family assets are ring fenced and to enable family members (the beneficiaries) to reap financial benefits from your estate while you are still alive or after death.

    There are many reasons to establish a family trust. For instance, if you have an estate that you would want to pass to your children, your trust deed can outline how this will be done. Your direction to your trustees can be broad or specific, and can include provisions or conditions as to when and how the beneficiaries will get a share of the trust fund or income in future (e.g., at certain age, after tertiary education; upon marriage etc.).

    Whereas other types of trust can list third parties as beneficiaries, family trusts usually only cater for your own family members.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Types of Family Trusts

    There are several types of family trusts, and the main ones include:

    1. Revocable Family Trust: – This type of trust can be easily modified or dissolved anytime you decide to do so. These are flexible trusts.
    2. Irrevocable Family Trust: – This type of trust cannot be cancelled or easily changed after its establishment. The settlor or grantor loses access to and control over the trust assets once the trust has been funded because the assets become trust-owned. Irrevocable trusts are often used for assets protection.
    3. Living Trusts: – Living Trusts are designed to hold and protect your assets for you during your lifetime. With a revocable living trust you can designate yourself as the trustee (either alone or together with others) and take control of assets within the trust. This means the assets in the trust remain part of your estate while you are alive and have mental capacity and you will usually be named as a the ‘principal beneficiary of the trust. For instance, as the principal beneficiary of the trust, you can be guaranteed right of occupation of your property for the remainder of your life meaning that your trustees, usually your children, cannot evict you under any circumstances. You are also at liberty to move home, or release equity from the trust at any time. You can also direct your trustees to sell the property and to buy a new property of your choice. As the grantor or settlor, you retain the power to change and amend the trust deed at any time including changing the beneficiaries. Equally, you can even dissolve the trust altogether. This type of trust is equally applicable to married couples as well as to single people.

    With an irrevocable living trust, you as the settlor or grantor relinquish certain rights to control the trust fund and appoint an independent trustee or trustees who effectively become the legal owners. Once the trust has been established, the named beneficiaries are set and as a settlor you can do little to amend the trust deed.

    4. Marital Trust: – This trust will usually provide that the assets will automatically pass to a surviving spouse upon the death of the first spouse. Once both have passed, the trust assets will go or be administered for the benefit of designated beneficiaries.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Advantages and Disadvantages of Family Trusts

    The advantages of setting up a family trust include:

    1. Creditor protection – assets held in trust are usually accessible to the creditors of the grantor or beneficiaries, or the trustees
    2. Protection against partners in divorce – If your assets are owned by a trust, or are given to your trust upon death, your children can continue to receive the benefit of those assets but the assets do not form part of their personal property, and therefore cannot be subject to claims by your children’s partners in the event of Moreover, if those assets are transferred into a family trust prior to entering into a marriage, the assets in the trust are less likely to be subject to claim at the end of the relationship.
    3. Protecting property from or for beneficiaries – For purposes of protection of your children from bad company or frauds or bad marriage, it may not be advisable to simply give your assets to your children during your life or on death. If you employ a family trust, then the trust can provide a vulnerable child or dependent with income and/or capital to meet their cash requirements as they arise. This can help protect the long- term value of your family’s assets. With an airtight trust deed, assets can be protected from the threat of lawsuit, bankruptcy or divorce.
    4. Reducing or preventing claims against your estate – Under the Succession Act, the court can effectively rewrite your Will if it considers that members of your family have been disadvantaged by its provisions and have not been adequately provided for. However, the court cannot rewrite your trust.
    5. Confidentiality – Family trust are not publicly registered and therefore can be kept confidential and private.

    [/vc_column_text][vc_empty_space height=”20px”][vc_column_text]The following are a number of the disadvantages of having a family trust:

    1. Loss of ownership of assets – Once you have funded the trust, especially an irrevocable trust, then the trustees of that trust will have the ownership and the control the assets. Therefore, even if you can retain some control by holding the power to appoint and/or remove trustees, or even by being a trustee yourself, the assets you transfer to the trust are no longer your If you continue to treat the assets as your own, any trust could be open to challenge as a sham.
    2. Legal costs of formation of the trust and the transfer of assets – There are costs involved with establishing and funding a trust. These will depend on the complexity of your trust and the nature of the assets to be Nevertheless, there are certain stamp duty and capital gain tax exemptions under Kenyan laws for transfer of assets to a family trusts.
    3. Continuous Administration Costs – If you establish a trust, you need to allow for the time and cost involved with meeting the trust’s annual accounting and administrative Additional costs may also apply   if you appoint professionals trustee or corporate trustees.

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    Is a Family Trust Appropriate for you?

    If you want your assets and your loved ones protected when you can no longer do so, then you will need an effective estate plan which may inevitably involve establishment of a family trust. As indicated above, there are a lot of advantages of establishing a family trust. Without one, your assets could be exposed to claims by third parties and your family left without protection. Moreover, your estate could be exposed to unwarranted legal contestations amongst your dependents and family members. In such case, the court could designate how your assets are divided — including who gets to raise your children in the event of death. Therefore, there are tangible benefits of establishing a family trust. Indeed, most family trusts are formed to reduce the impact of changes which may, or may not, occur such as;

    1. Protection of children or other venerable dependents
    2. Protection of estate from claims from business creditors; and
    3. Protection of estate from relationship breakdowns like divorce or separation;

    [/vc_column_text][vc_empty_space height=”20px”][vc_column_text]If you have any further questions, or would like to talk to someone about establishing a family trust, make an appointment with us or contact us through legal@gabaeltrust.com.

     

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  • Why Family Trust is an Exceptional Tool for Estate Planning

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    What is a Family Trust?

    A family trust is an estate planning tool that is created by a Settlor (the Founder of the Trust) by transferring his or her assets to the trust and placing them under the control of a Trustee for the benefit of their named Beneficiaries.

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    What is the Purpose of Establishing a Family Trust?

    A family trust enables you to create a legal mechanism whereby your personal assets or your family assets can be accumulated, multiplied and passed onto the named beneficiaries throughout generations.

    It also allows you to outline how you want your affairs to be handled in the event you are incapacitated due to old age or mental illness.

    It is important to note that whereas other types of trust can list third parties as beneficiaries, family trusts only cater for your own family members.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    What is the Nature of a Family Trust?

    Once a family trust is registered, it becomes a body corporate with a common seal, having perpetual succession, the power to sue and be sued as well as the capacity to own property in its own corporate name.

    Of note is that a family trust is a non-trading entity meaning that if the maker of the trust wants to transfer commercial property to the trust then he or she would have to seek professional advice on how to devise the family trust structure to allow for the same.

    Be it as it may, family trusts can be used to hold non trading assets like land or your family home or can be a shareholder in one of your trading companies, in which case it will offer you more protection by disguising the true owners of the business.

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    What are the advantages of establishing a Family Trust?

    Family trust are an exceptional estate planning tool as they enable the maker of the trust and their family to enjoy the following advantages: –

    1. Asset Protection

    Establishing a family trust provides an excellent asset protection mechanism for your family’s wealth. Once you transfer your assets to your duly incorporated family trust, then the trust becomes the registered owner of the property. Such asset protection is very useful particularly in the following circumstances:

    • In the event of divorce settlement (because trust assets will not be available for distribution as part of the matrimonial assets);
    • Where you have given or are likely to give personal indemnities or guarantees in the course of business (since your personal assets (like family home) will be owed by the trust and there- fore unavailable to such creditors)
    • Where you are involved in risky business that exposes you to personal claim from creditors or employee; and
    • Where there are minors/children or disabled or vulnerable family members who cannot cater for themselves or whose future you wish to secure.

    [/vc_column_text][vc_empty_space height=”20px”][vc_column_text]2. Avoidance of Probate. 

    A trust structure can be used to avoid expensive and often contentions probate process. This is because unlike wills that are invariably contested in court by dependents and family members, recent court decisions show that courts will generally not agree to the revocation or nullification of a family trust deed.

    3. Tax Planning

    The Finance Act, 2021 introduced some tax incentives in respect of family trusts which include the following tax exemptions:

    • Tax on the income or principal sum of a registered Family Trust
    • Capital gains tax relating to the transfer of title of immovable property to a Family Trust; and
    • Capital gains tax and stamp duty accruing to an individual on the transfer of property, including investment shares, for the purpose of transferring the Title or the proceeds into a registered Family Trust

    In addition, it also introduced section 11(3A) to the Income Tax Act to provide an exemption of taxable income with respect to registered trusts in the following circumstances:

    • Any amount that is paid out of the trust income on behalf of any Beneficiary and is used exclusively for the purpose of education, medical treatment or early adulthood housing;
    • Income paid to any beneficiary which is collectively below Ten million shillings (Kes. 10M) in the year of income; and
    • Such other amounts as the Commissioner may prescribe from time to time.

    4. Discretionary Trusts

    Creating a family trust does not mean that you will completely lose control of your assets or properties. This is especially the case if you elect to be a Trustee of your family trust either alone or together with others.

    The family trust can be structured as a discretionary trust in which case the Trustees will decide when and how frequently payouts are done as well as any other rules to prevent reckless spending by the beneficiaries and generally for the preservation of the family wealth.

    5. Enforcer

    Kenyan statutes on trusts have recently been amended to introduce the office of an Enforcer who can be appointed by the founder of the trust or in his absence, by the Beneficiaries of the trust. The Enforcer is usually appointed for purposes of safeguarding the interest of the Beneficiaries as well as supervising the Trustees and prevent cases of breach of trust.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Is a Family Trust appropriate for you?

    Noting the above, there are tangible benefits to be gained by establishing a family trust. Indeed, most family trusts are formed to reduce the impact of changes which may or may not occur such as:

    1. Protection of children or other vulnerable dependents
    2. Protection of the estate from the claims from business creditors; and
    3. Protection of estate from relationship breakdowns like divorces or separations

    That notwithstanding, it would be a good idea to consider registering a family trust if you are keen on accumulating, protecting and multiplying your family assets during your lifetime and even after your demise

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    How we can Help

    Gabael Trust Corporation Limited has established itself as a ‘go-to-firm’ that provides premier corporate trustee, corporate administrator and corporate executor services in Kenya. We also provide value-added services such as advice on investment, tax and retirement that may be critical for your Family Trust.

    We have an excellent team of experts and strategic partners across the East African Region who are ready to meet your unique trust administration needs and we welcome you to take advantage of our excellent, professional and cost-effective services.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Email us at : legal@gabaeltrust.com

    Tel No: +254721873805

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  • New Legal Regime on Registration of Family Trusts in Kenya

    [vc_row][vc_column][vc_column_text]The Trustee (Perpetual Succession) (Amendment) Act, 2021 (the “Amendment Act), which was signed into law on 23rd December, 2021 has made some amendments to the Trustees (Perpetual Succession) Act (Chapter 164 of the Laws of Kenya) (the Act”) in relation to registration of non-charitable trust and family trust in Kenya. Before this change, there was no comprehensive law that provided for registration of family trusts – through these were still being registered as simple trusts or as family companies. The Amendment Act was preceded by certain changes in tax laws through the Finance Act, 2021 which, inter alia, exempted transfers of property to a registered family trust from stamp duty and capital gain taxes.

    As stated in the preamble to the Amendment Act, the new legal regime for registration of family trusts in aimed at promoting the usage of family trusts for purposes of preservation of inter-generational wealth.[/vc_column_text][vc_column_text]In the new regime, like charitable and non-charitable trusts, family trusts will now be incorporated under the Act. Upon such incorporation, the family trust will:

    1. Become a body corporate by the name described in the certificate
    2. Have perpetual succession and a common seal
    3. Have power to hold and acquire property in its own name and by instruments under the common seal to convey, transfer, assign, charge and demise any movable or immovable property or any interest therein
    4. Have power to sue and be sued in its corporate name.

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    What is a Family Trust?

    Under the Amendment Act, a ‘’family trust’’ is ‘’a trust, whether living or testamentary, partly charitable or non-charitable, that is registered or incorporated by any person or persons, whether jointly or as an individual, for the purpose of planning or managing their personal estate’

    Generally speaking, a family trust is defined as a trust created for purposes of planning or managing one’s personal estate. In a nutshell, it is an estate planning tool. Under the new law, the family trusts should be made in contemplation of beneficiaries other than the settlor, and for the purpose of preserving or creating wealth for multiple generations. Moreover, a family trust should not be a trading entity. Therefore, where a trust intends to engage in trading or any businesses, this would only be possible through incorporation of separate trading companies which would be fully owned by the trust.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Deed of Settlement

    The Amendment Act, also made provision for the settlement of property into family trusts by any person other than the settlor. This will encourage and ease the consolidation of wealth among families thereby promoting wealth preservation through generations. Settlement is a kind of transfer of property, predominantly immovable, by its owner. Nevertheless, invariably, in settlements, consideration would not be there directly as in the case of sales. For instance, a settlement can be made in favour of family members or even non relatives due to the love and affection that the executant/ owner of property had over the claimant. Thus ‘love and affection’ is considered as a consideration in settlement. Equally, a property can be settled in favour a trust also for religious or charitable purpose and the mental satisfaction is considered as the consideration.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Features of a Family Trust.

    As indicated before, a family trust is a legal entity into which one can transfer assets to be managed or administered by trustees on behalf one or multiple family members. When you talk of trust, these main terms that should be understood are:

    Trust deed/document: The legal agreement which establishes and set the terms and conditions under which the trustees will manage or administer the trust assets on behalf of the beneficiary or beneficiaries.

    Grantor/settlor: The person who establishes or creates a trust.

    Trustee(s): The person(s) who manage(s) the trust assets or the custodian of the The trustee can also be a body corporate usually known as corporate trustee.

    Trust beneficiary or beneficiaries: The individuals or other persons that received benefits or receive income or assets from the trust.

    Funding the trust: It is a process in which the grantor transfers the assets from his or her own personal names to that of the This will often involve changing the titles of assets from a person’s individual name to the name of the corporate trust. Examples are the transfer of a logbook of a car to the trust or a title deed to a property to the trust.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Who is an Enforcer?

    The Amendment Act also introduced the concept of Enforcer, as a separate office that is distinct from that of trustees. The enforcer should be appointed by the settlor or, in his absence, the beneficiaries.

    The office of the Enforcer is established to monitor the administration of the trust for the benefit of the beneficiaries. Whilst not a mandatory role, it would be prudent to provide for an enforcer in a trust deed. Under the Amendment Act, the enforcer is given an overarching / supervisory role over the trustees with mandate to:

    • Enforce the terms of the trust;
    • Inquire into the status of implementation of the trust;
    • Require the trustee to remedy any breach of the terms of the trust
    • Report any financial or other breaches by the trustee to the settlor or the beneficiaries and or to pursue legal action against the trustees for such breaches or other malfeasance
    • Act in the place of trustees in any suit relating to the enforcement of the trust or breach of trust by the trustees

    It should be underscored that under the Amendment Act, the Enforcer must be separate and distinct from the trustee(s). Therefore, the two offices cannot be occupied by the same person.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Registration of Family Trusts

    Before the Amendment Act, the registration of trusts under the Act was vested in the office of the Cabinet Secretary and therefore riddled with uncertainty and administrative bureaucracy with incorporation of trusts being delayed for years.

    The Most revolutionary part of this Amendment Act is the ease of the registration process. Under the amendment Act, the applications for incorporation of family trusts (as well as other forms of trusts) will be under the office of Principal Registrar of Documents and must be approved or rejected within sixty(60) days.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Tax Incentives for Family Trusts

    As indicated before, the Amendment Act was preceded by amendments to the Finance Act, 2021 which introduced several tax incentives for family trusts. Under these changes, the tax exemptions shall apply in respect of:

    1. The income or principal sum of a registered family trust
    2. Capital gains relating to the transfer of title of immovable property to a family trust; and
    3. Capital gains accruing to an individual on the transfer of property, including investment shares, for the purpose of transferring the title or the proceeds into a registered family trust.

    Further, with effect from 1st July, 2021, following the changes introduced by the said Finance Act to Section 11 of the Income Tax Act the following payout from a registered family trust will, inter alia, be exempt from family trust:

    1. Any amount that is paid out of the trust income on behalf of any beneficiary and is used exclusively for the purpose of education, medical treatment or early adulthood housing;
    2. Income paid to any beneficiary which is collectively below Kenya Shillings ten million (KShs. 10,000,000/=) in the year of income.

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    Advantages of Family Trust

    The advantages of a family trust, inter alia, include:

    1. Tax Planning – Please refer to the aforesaid tax exemptions which will significantly reduce the total amount of tax paid on the trust income by the beneficiaries.
    2. Asset Protection – A family trust structure can protect your family’s wealth from creditors or in the event of divorce. Unless where trust is being used as creditors avoidance scheme, creditors of the beneficiaries cannot access trust This includes where a beneficiary becomes bankrupt.
    3. Avoidance of Probate – a trust structure can be used to avoid expensive and often continuous probate Unlike in cases of wills or settlements, third parties’ dependents cannot contest the provisions of a trust.
    4. Discretionary trusts – the family trust can be restructured as a discretionary trust in which case the trustees will decide when payouts are paid out, how frequently, and any other rules to prevent reckless spending by beneficiaries and generally for the preservation of the family
    5. Enforcer – The introduction of the independent office of enforcer (as aforesaid) will ensure that trustees of family act do not abuse their office or act ultra vires the terms of the trust deed. This will also reduce unwarranted litigation as the enforcer can also be given power to remove any offending trustees and to replace them with other trustees in consultation with the settlor or the beneficiaries.

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    How Gabael Trust Corporation Can Assist

    Our Family Business and Estate Planning Unit should be happy to help you structure and register a family trust. Our tax lawyers will be involved in advising on the tax issues so that your trust is able to guarantee maximum tax benefits.

    If you are interested to register or set up a family trust, or require any further information or clarification of the foregoing, please get in touch with us.

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    Contact

    legal@gabaeltrust.com

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  • The Importance of Selecting Suitable Trustees

    [vc_row][vc_column][vc_column_text]Every time we give a talk, conduct a training or pitch the idea of a family trust as a tool for effective estate planning and protection of family wealth to a potential client, the Njenga Karume Trust always comes up.

    The Njenga Karume Trust was thrust into the news headlines just months after his passing at a time when the most popular succession planning tool was Wills and the concept of Trusts was uncommon and deemed as “innovative lawyering”.

    The late Njenga Karume was a renown Kenyan politician whose estate was estimated at being worth at least Kenya Shillings 40 Billion. Prior to his demise, he had gone against the grain and had chosen to register a family trust as the means of devolving his vast estate. He appointed various Trustees from different fields but who largely constituted his personal friends. The Trustees were charged with the running of his businesses and distribution of the trust fund to the Late Karume’s beneficiaries. Things seemed to be running well and the trust structure was even praised in various quarters as being a progressive way of ensuring continuity of business and avoiding family squabbles which had characterized several succession matters.[/vc_column_text][vc_column_text]Soon after, however, cracks started emerging with court battles which pitted some beneficiaries (children of the late Njenga Karume) against other beneficiaries and the Trustees of the Njenga Karume Trust. The legal principles re-affirmed by the Court in that matter shone a bright light on the lapses in the law on the establishment of family trusts in Kenya so much so that in December, 2021 our country adopted the a new legal regime on registration of Family Trusts in Kenya.

    The Njenga Karume case mainly brought to light the issue of errant Trustees who were accused of grossly breaching the terms of the Trust Deed by doing the following:

    1. Appointing new Trustees unprocedurally;
    2. Failing to account for the funds of the Trust;
    3. Borrowing substantially from financial institutions without consulting the beneficiaries of the Trust;
    4. Discriminating against some of the Beneficiaries;
    5. Commencing various transactions with the aim of disposing off the assets of the Trust without notifying the beneficiaries and accounting for all such dispositions.

    [/vc_column_text][vc_empty_space height=”20px”][vc_column_text]Some of the beneficiaries of the Njenga Karume Trust sought the removal of the Trustees alleging manifest breaches of the fiduciary and statutory duties owed by Trustees under the Trust Deed and the law.

    The Court in carefully examining the evidence adduced by the parties stated that when a Trustee is given legal title to the Trust property, in accepting that title, he or she owes a number of fiduciary duties to the Beneficiaries. The primary duties owed include the duty of loyalty, the duty of prudence and the duty of impartiality. These are supported by the duties of openness and transparency and the duties of record-keeping, accounting and disclosure[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]which heavily lacked in the management and administration of the Njenga Karume Trust.

    Further, the court noted that it was apparent that the relationship between the Trustees and the Beneficiaries had irretrievably broken down and which was likely to jeopardize the proper administration of the Trust going forward.

    The Court in ordering the removal of all the Trustees save for one Trustee who was a Beneficiary pronounced itself as follows:

    “As stated elsewhere in this determination, the Trustees are found to have breached the provisions of the Trust Deed by failing to comply with its express provision in relation to appointment of the new Trustees to wit Mr. Gatabaki and Mrs. Kamithi. The Trustees further failed in their duty to keep proper books of accounts and further to provide information to the beneficiaries. The Trustees further failed to inform the beneficiaries in the dealing with the property of the Trust. Despite them having been bestowed with discretion by the Trust Deed the Trustees further discriminated against some of the beneficiaries by denying payment of allowances on the basis that the said beneficiary did not sign the handbook indemnifying the beneficiaries.

    The structuring of a Trust must take into account the proper wording of the Trust Deed as well as careful consideration when appointing Trustees as this is critical to the proper management and administration of the Trust. The Trustees are essentially the gatekeepers of the Trust and should always exercise good faith while exercising their duties in the Trust Deed. In truth, a Trust largely succeeds or fails with the choice of the Trustees.[/vc_column_text][vc_empty_space height=”20px”][vc_column_text]

    Conclusion

    One of the ways in which a Settlor can ensure the proper administration of their Trust is by appointing a Corporate Trustee solely or jointly with other Trustees along with an Enforcer whose mandate is to ensure adherence of the Trust Deed.

    A Corporate Trustee is a duly registered company with perpetual succession that is licensed to undertake corporate trustee services. Unlike individual trustees, a corporate trustee is a legal person and an autonomous entity and can be held to account by the Beneficiaries in the event of breach of trust so as to avoid a distasteful experience as was in the case of the Njenga Karume Trust.

    Appointing an independent and impartial Corporate Trustee or Enforcer such as Gabael Trust Corporation Limited, solely or jointly with other Trustees in your family trust, is highly advantageous and important to the proper administration and management of the Trust.[/vc_column_text][vc_column_text]advantageous and important to the proper administration and management of the Trust.

    Gabael Trust Corporation Limited is a full-service premier company that provides independent and client-centric fiduciary and corporate trustee services in Kenya. We have a breadth of experience in providing fiduciary and related services which we draw from our wide variety of resources and skills on matters estate planning and trust administration spanning across the East African Region.

    At Gabael, our clients are our first priority and we welcome you to take advantage of our excellent, cost-effective and timely legal solutions to all your fiduciary and trustee related matters.[/vc_column_text][vc_empty_space height=”20px”][vc_row_inner][vc_column_inner][vc_column_text]

    Contact Person

    Shalma E. MAINA
    Estate Planner – Gabael Trust Corporation
    legal@gabaeltrust.com[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]