Your estate is comprised of everything that you have worked so hard to acquire and own; this includes your movable and immovable assets as well as tangible and intangible assets, regardless of its size or quantum. For this reason, it is very important to set up a full proof plan of how you want your assets to be managed in your lifetime or after your death.
Estate planning is the process of setting up a plan that clearly indicates how you want your assets to be distributed in the event of your death. 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.
There is no denying that a good majority of people do not have an estate plan in place. Others believe that estate planning is a reserve for the wealthy. However, you can rest assured that estate planning is for everyone as it ensures that your family’s needs are well provided for.
Creating an Estate Plan is also important for the following reasons: –
- Allows you to elect your Beneficiaries (i.e. those who will inherit from your estate);
- Gives you the ability to name your children’s guardian in the event of your death;
- Enables you to protect your estate from creditors;
- Enables you to reduce taxes on your estate; and
- Minimizes the chances of family strife and ugly legal battles.
While no one wants to think about dying, the consequences of lack of proper estate planning are far reaching and much worse. It could lead to discord among family members, contentious family disputes, protracted court battles and distribution of your assets to unintended persons.
What can you do
In the words of American Author Alan Lakein, “Planning is bringing the future into the present so that you can do something about it now.” So to get you started, here is a 6 step estate planning checklist you can use:
|NO.||ESTATE PLANNING TASK||TICK to mark the task as|
|1||Prepare a list and an estimate value of all your tangible assets (i.e. houses, land, cars, art) and intangible assets (i.e. shares, life insurance policies, pension)||✓|
|2||Prepare a list of your beneﬁciaries highlighting those that are highly dependent on you (i.e. your children, elderly parents, disabled family member);|
|3||Establish the objectives of your estate plan; (i.e. protection of assets, providing for your beneﬁciaries, accumulation and growth of family wealth, tax mitigation)|
|4||Establish your wishes for your estate (i.e., asset distribution, guardianship for your children, burial wishes)|
|5||Select reliable and responsible estate executors or trustees; (i.e. your trusted family members, responsible friends or a professional corporate body).|
|6||Seek professional assistance to ﬁnd out the best estate planning tool for you (i.e. Will, Family Trust, Gift intervivos)|
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 Estate Plan.
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.
Get in touch with us today to start your eﬀective estate planning journey!