Navigating Estate Planning: What You Need to Know

Estate planning isn’t just for the wealthy—it's a crucial step for anyone who wants to ensure their assets are managed and distributed according to their wishes. In Kenya, the process involves legal frameworks designed to protect your estate and beneficiaries. Here’s what you need to know: 1) Understand What Estate Planning Involves Estate planning is more than just writing a will. It encompasses wills, trusts, power of attorney, and healthcare directives. These tools help manage your assets during your lifetime and distribute them after your death according to your wishes, minimizing disputes among beneficiaries. 2) The Importance of Having a Will A will is a legal document that outlines how you want your assets distributed upon your death. In Kenya, wills are governed by the Law of Succession Act (Cap 160). Having a will reduces the risk of family disputes and ensures your property is inherited as per your directives. Ensure your will is signed, witnessed, and regularly updated to reflect changes in your circumstances. 3) Consider Setting Up a Trust Trusts are legal arrangements where a trustee holds and manages assets on behalf of beneficiaries. They are particularly useful for managing complex estates, safeguarding assets for minors, or providing for dependents with special needs. Trusts in Kenya are governed by the Trustees (Perpetual Succession) Act. 4) Power of Attorney and Advanced Directives A power of attorney allows you to appoint someone to manage your affairs if you become incapacitated. This can cover financial decisions, property management, and even healthcare decisions. The Powers of Attorney Act governs this process in Kenya. Additionally, consider having an advanced healthcare directive to guide medical decisions if you're unable to communicate your wishes. 5) Navigating Intestate Succession If someone dies without a will, their estate is distributed according to the rules of intestacy under the Law of Succession Act. This often leads to lengthy court processes and potential disputes. To avoid this, proactive estate planning is essential. Final Thoughts Estate planning provides peace of mind, knowing that your affairs are in order and your loved ones are protected. It’s not just about wealth but about clarity and security. At Murugu Rigoro and Company Advocates, we offer expert guidance to help you create a comprehensive estate plan to suit your needs.