{"id":1039,"date":"2026-09-29T13:21:24","date_gmt":"2026-09-29T13:21:24","guid":{"rendered":"https:\/\/baadvocates.com\/?p=1039"},"modified":"2026-10-19T08:20:48","modified_gmt":"2026-10-19T08:20:48","slug":"wills-vs-family-trust","status":"publish","type":"post","link":"https:\/\/baadvocates.com\/index.php\/2026\/09\/29\/wills-vs-family-trust\/","title":{"rendered":"WILLS VS FAMILY TRUST"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">There has been a growing trend in Kenya where many individuals are choosing to establish family trusts instead of writing wills. This trend has especially gained momentum following the introduction of the <strong>Trustees (Perpetual Succession) Act, 2021 (Cap 164)<\/strong>. This development raises an important question: <strong><em>what is the best legal instrument to use when planning and managing one\u2019s estate?<\/em><\/strong><em><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>What is a Will?<\/u><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>will<\/strong> is a legal record of a person\u2019s wishes and intentions regarding the <strong>distribution of their property upon death<\/strong><strong>.<\/strong> It is a <strong>testamentary document<\/strong>, meaning it <strong>only takes effect after the death of the testator<\/strong> and has no legal force during the lifetime of the person making it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Section 5 of the Law of Succession Act provides that every person who is of sound mind and not a minor may dispose of all or any of his free property by will.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Advantages of a Will<\/u><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A will has several advantages:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>testator has the freedom to distribute their property as they deem fit.<\/strong> This includes identifying executors, beneficiaries, assets owned and <strong>providing a full disclosure of liabilities<\/strong><strong>.<\/strong><\/li>\n\n\n\n<li>A <strong>will allows a person to provide for their dependents\u2019 as they see fit.<\/strong> However, this freedom is not absolute. A testator <strong>cannot completely exclude dependents\u2019<\/strong> whom they were maintaining during their lifetime. This principle was affirmed in <strong><em>Marete v Marete &amp; 3 Others [2024] KECA 371<\/em><\/strong>, where the Court held that dependents maintained during a person\u2019s lifetime <strong>must also be reasonably provided for in the will<\/strong><strong>.<\/strong><\/li>\n\n\n\n<li>A testator <strong>appoints executors<\/strong> who are responsible for administering and distributing the estate. Executors may be <strong>family members, friends or professionals<\/strong><strong>.<\/strong><\/li>\n\n\n\n<li><strong>Where a testator has minor children, a will provides an opportunity to appoint guardians<\/strong> who will be legally responsible for the minors.<\/li>\n\n\n\n<li>A will ensures <strong>all assets are accounted for<\/strong><strong>,<\/strong> reducing the risk of partial intestacy.<\/li>\n\n\n\n<li>A <strong>testator may include a \u201cno-contest clause\u201d<\/strong><strong>,<\/strong> which penalizes a beneficiary who challenges the will, typically by forfeiting their entitlement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Disadvantages of a will<\/u><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A will is not an absolute shield and may be challenged in court on legitimate grounds.<\/li>\n\n\n\n<li>A will cannot override statutory rights particularly the rights of a spouse or dependents under the Law of Succession Act.<\/li>\n\n\n\n<li><strong>Punitive or unconscionable clauses may be struck out<\/strong> by the court for being contrary to public policy.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>What is a Family Trust?<\/u><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>family trust<\/strong> is a legal arrangement where a person <strong>(<\/strong><strong>the settlor<\/strong><strong>)<\/strong> transfers property or assets to a trust, which is managed by <strong>trustees<\/strong> for the benefit of designated beneficiaries, usually family members. The trust is governed by a <strong>written trust deed<\/strong>, which sets out its objectives, duration, powers of trustees and the manner in which assets are to be managed and distributed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kenyan courts, particularly in the <strong>Njenga Karume case<\/strong>, have extensively discussed family trusts, emphasizing the importance of a <strong>trust deed<\/strong><strong>,<\/strong> proper appointment of trustees and beneficiaries and where appropriate, the appointment of an <strong>enforcer<\/strong><strong>.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>trust deed acts as the constitution of the trust<\/strong><strong>.<\/strong> It names beneficiaries in their legal names, appoints trustees and defines their powers and clearly lists the trust assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Types of Trusts<\/u><\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Discretionary Trust<\/strong> &#8211; the settlor allows trustees discretion on how and when beneficiaries receive benefits.<\/li>\n\n\n\n<li><strong>Fixed trust<\/strong>&#8211; the settlor specifies fixed entitlements for beneficiaries.<\/li>\n\n\n\n<li><strong>Blind trusts<\/strong>&#8211; beneficiaries have little or no knowledge of the trust assets and cannot intervene.<\/li>\n\n\n\n<li><strong>Open trust<\/strong>&#8211; beneficiaries are fully aware of the assets held in the trust<\/li>\n\n\n\n<li><strong>Revocable trust<\/strong> \u2013 the trust deed reserves the settlor\u2019s power to revoke or amend the trust.<\/li>\n\n\n\n<li><strong>Irrevocable trust<\/strong> \u2013 the trust cannot be revoked, altered or amended except by court order upon application by the trustees.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Advantages of a family trust<\/u><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Legal ownership and beneficial interest are separated<\/strong>, protecting family assets from creditors and future claims.<\/li>\n\n\n\n<li><strong>Trustees hold legal title<\/strong>, while beneficiaries hold beneficial interest.<\/li>\n\n\n\n<li><strong>Trust assets form a separate fund<\/strong><strong>,<\/strong> distinct from personal estates.<\/li>\n\n\n\n<li>The principles of severability <strong>apply<\/strong>, meaning if part of the trust deed is invalid, the rest remains enforceable as affirmed in the <strong>Njenga Karume case<\/strong>.<\/li>\n\n\n\n<li><strong>Trustees have the power and duty to manage, invest or dispose of trust assets<\/strong><strong>.<\/strong><\/li>\n\n\n\n<li><strong>The rule against perpetuities has been relaxed, allowing long-term wealth planning.<\/strong> This means that assets placed in a family trust can be held and managed for extended periods and in some cases indefinitely, without the trust being invalidated by strict time limits<\/li>\n\n\n\n<li>All trusts are deemed irrevocable upon the death of the settlor.<\/li>\n\n\n\n<li>Trusts avoid probate, ensuring privacy and faster asset transmission.<\/li>\n\n\n\n<li>Trusts allow provision for multiple generations.<\/li>\n\n\n\n<li>An enforcer may be appointed to resolve disputes between trustees and beneficiaries. A trustee cannot act as an enforcer. Enforcers are often professionals, elders or religious leaders whose decisions may be final.<\/li>\n\n\n\n<li>Registered family trusts enjoy tax exemptions, including relief from stamp duty and capital gains tax.<\/li>\n\n\n\n<li>Unlike wills, trusts remain private and do not become public documents.<\/li>\n\n\n\n<li>Trusts protect vulnerable beneficiaries, such as minors and persons with disabilities, from mismanagement or exploitation.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Registration and incorporation process of a family trust<\/u><\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Preparation of a trust deed<\/strong>, outlining trustees, beneficiaries, objectives and duration.<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Payment of stamp duty<\/strong>, once signed by the trustees, the trust deed must be submitted for stamp duty assessment and payment.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Registration under the Registration of Documents Act (RDA)<\/strong>. At this stage, the trust operates as a simple trust and is not yet a body corporate.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Incorporation under the Trustees (Perpetual Succession) Act<\/strong> through the Business Registration Service (BRS).<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Once a Trust is incorporated, the trustees become a body corporate by the name described in the certificate of incorporation, and the Trust shall be able to:<\/li>\n<\/ul>\n\n\n\n<ol style=\"list-style-type:lower-alpha\" class=\"wp-block-list\">\n<li>Have perpetual succession and a common seal; and<\/li>\n\n\n\n<li>Sue and be sued in its corporate name.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>Tax Exemptions Enjoyed by Family Trusts<\/u><\/strong><strong><u><\/u><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Capital Gains Tax<\/strong>\u2013 Paragraph 58 of the first schedule of the Income Tax Act provides an exemption to capital gains tax on the transfer of a title of immovable property to a family trust.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Income Tax<\/strong>\u2013 Paragraph 36 (g) of the first schedule of the Income Tax Act exempts income of an individual chargeable to tax where the gain is a result from the transfer of a property, including investment shares, which is transferred or sold for the purpose of transferring the title or the proceeds into a registered family trust.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Stamp Duty<\/strong>\u2013 Section 52 (2) (b) of the Stamp Duty Act exempts payment of stamp duty for a conveyance or transfer in favor of a registered family trust for charitable purposes only or the trustees of a trust so established. Section 117(h) of the Stamp Duty Act exempts a registered family trust from payment of stamp duty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><u>CONCLUSION<\/u><\/strong><strong><u><\/u><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A will and a family trust both serve important but distinct roles in estate planning. A will is simple and effective for directing how assets are distributed upon death, but it takes effect only after death and is subject to probate and possible challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A family trust offers greater control, asset protection, privacy and continuity during and after the settlor\u2019s lifetime, making it suitable for long-term and multi-generational planning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, the most effective estate planning often involves using both a will and a family trust together to achieve comprehensive and orderly succession.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><br>For more information or tailored advice, feel free to reach out to us.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"205\" src=\"https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-1024x205.png\" alt=\"\" class=\"wp-image-1073\" srcset=\"https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-1024x205.png 1024w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-300x60.png 300w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-766x153.png 766w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-1536x307.png 1536w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Disclaimer-2-2048x409.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-1024x485.png\" alt=\"\" class=\"wp-image-1041\" srcset=\"https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-1024x485.png 1024w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-300x142.png 300w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-766x363.png 766w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-1536x728.png 1536w, https:\/\/baadvocates.com\/wp-content\/uploads\/2026\/09\/Priscillah-1-2048x970.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>There has been a growing trend in Kenya where many individuals are choosing to establish family trusts instead of writing wills. This trend has especially gained momentum following the introduction of the Trustees (Perpetual Succession) Act, 2021 (Cap 164). This development raises an important question: what is the best legal instrument to use when planning [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1040,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-planning"],"_links":{"self":[{"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/posts\/1039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/comments?post=1039"}],"version-history":[{"count":2,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/posts\/1039\/revisions"}],"predecessor-version":[{"id":1082,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/posts\/1039\/revisions\/1082"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/media\/1040"}],"wp:attachment":[{"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/media?parent=1039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/categories?post=1039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baadvocates.com\/index.php\/wp-json\/wp\/v2\/tags?post=1039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}