Family Trusts for Kenyans in the Diaspora – Frequently Asked Questions (FAQ)

By CM Advocates LLP

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1. What is a family trust and how does it work?

A family trust is a legal arrangement where assets—such as land, property, or investments—are held and managed by trustees for the benefit of named beneficiaries.
Once the trust is registered under the Trustees (Perpetual Succession) Act, it becomes a legal entity capable of owning property, managing assets, and distributing income according to the trust deed.

2. Why is a trust particularly important for Kenyans living abroad?

For Kenyans in the diaspora, managing inherited property from overseas can be difficult.
A trust ensures:

• Your assets in Kenya are legally protected,

• Trustees manage and distribute them on your behalf,

• And your intentions are carried out without delays or disputes, even when you are not physically present.

3. Can a trust protect my inheritance from misuse or fraud?

Yes. Once assets are transferred into a registered trust, they belong to the trust (not to individual family members). This means:

• Unauthorized sales or transfers of land are prevented,

• There is a clear legal title,

• Trustees are accountable by law for any mismanagement.

4. What assets can I place in a family trust?

Typical assets include:

• Family or ancestral land

• Urban real estate and rental properties

• Family-owned businesses and company shares

• Investment portfolios and bank accounts

• Farming income or joint venture earnings

• Life insurance proceeds and education funds

5. How is a family trust different from a will?

Will

• Must go through probate (court process) before assets are distributed

• Becomes a public document once probated

• Can be contested or delayed

Trust

• Avoids probate entirely

• Remains private and confidential

• Provides continuous management of assets even during incapacity or absence

6. Can a trust be used for blended or polygamous families?

Yes. Trusts are particularly useful in complex family structures, such as blended or polygamous families. They allow:

• Clear rules for allocating income and assets,

• Equal protection for all spouses and children,

• Reduced risk of disputes over inheritance.

7. I already live abroad. Can I still set up a trust in Kenya?

Absolutely.
With proper legal representation, you can:

• Instruct your lawyer remotely,

• Sign trust documentation electronically (where applicable),

• And appoint trusted local trustees or professional trustees to administer the trust.

8. What is the process of setting up a family trust?

The key steps include:

1. Consultation with a qualified estate planning lawyer.

2. Identification of assets to be included.

3. Drafting a trust deed, specifying beneficiaries and trustee powers.

4. Registration under the Trustees (Perpetual Succession) Act.

5. Transfer of assets into the trust.

9. How long can a trust last?

Following the 2021 amendments to the Accumulation and Perpetuities Act, trusts in Kenya can now exist indefinitely. This allows long-term legacy planning for future generations.

10. What role does CM Advocates LLP play?

At CM Advocates LLP, we assist Kenyans in the diaspora by:

• Drafting and registering family trusts

• Advising on trustee appointments (family vs professional)

• Providing ongoing compliance and trust management

• Offering cross-border estate planning solutions to secure Kenyan assets

Conclusion

For Kenyans abroad, a family trust is the most secure, private, and practical way to manage and protect inheritances in Kenya.
It provides peace of mind, ensures fairness, and preserves family wealth across generations.

Contact CM Advocates LLP Today
Email: cmaina@cmadvocates.com or law@cmadvocates.com | Call: +254 721869790