More and more people are now embracing Trusts over Wills to take care of their assets and or dependants when they depart from this life.

Here are some of the benefits of a Trust:

• Trust assets are separate from matrimonial property, meaning that upon divorce, property properly held in a Trust will not form part of the matrimonial property available for division.

• If you go broke and your business fails, Trust assets are protected from creditors. Clever people understand this.

• Trusts are tax efficient. Beneficiaries receive distributions without being taxed again where the relevant tax has already been paid by the trustee.

• Upon your death, beneficiaries benefit from Trust assets without having to go through the lengthy succession cases.
• Registering a Trust takes one or two weeks.                                                                                                                           A trust is a legal arrangement where you give property to someone to hold and manage FOR someone else. Think of it like this: You have 3 people: Settlor / Grantor – You, who owns the property and creates the trust Trustee – The person you trust to manage it (like a manager)Beneficiary – The person who benefits from it Example: You own land in Eldoret. You create a trust: “My brother John (Trustee) will hold this land for my 2 kids (Beneficiaries) until they are 18.”The land is legally owned by John, but he MUST use it for your kids – not himself.
• Why people use trusts in Kenya: Protect kids / family – If you die, property goes to kids without court succession fights, Avoid probate – Faster than Will. Privacy – Trusts are more private than Wills. Shariah compliance – Some Muslims use to manage inheritance Land / Business holding – Family land stays together. Charity – Like foundations
• Common types: Living Trust – You create while alive
• Testamentary Trust – Created by your Will after death
• Discretionary Trust – Trustee decides how much to give
• Bare Trust – Simple holding. In Kenya, trusts are registered under the Trustees (Perpetual Succession) Act and taxed by KRA. They need a Trust Deed.