Kenyan families spend years building wealth through businesses, property, savings, and investments, but few have a clear plan to protect those assets and pass them on to their children.
As a result, many households are seeking structured ways to secure their financial future, whether by ensuring a child’s school fees are paid, medical bills are covered, or day-to-day family needs are met.
A trust is one of the ways through which families can protect what they have built while ensuring their loved ones benefit from it according to their wishes.
Britam Trust Services offers two trust solutions designed to help individuals and families preserve wealth, provide for beneficiaries, and plan for the future.
One of the options available for families is the Britam Cash Trust, which allows individuals to set aside money for a specific purpose such as education, healthcare, or upkeep for a chosen beneficiary.
The trust can be opened with as little as KSh5,000 and grown over time through regular contributions and attached as a beneficiary to insurance policies, pension plans, group life, WIBA, SACCO accounts, etc.
For families with a wider range of assets, the Britam Family Trust, also known as the Britam Private Trust, can hold property, businesses, investments, cash, etc.
What Are the Benefits of Britam Cash Trust?
A Cash Trust holds and manages cash exclusively, allowing you to set funds aside for specific purposes.
Britam’s Cash Trust offers different options to meet various financial needs.
These include an Education Trust Fund for school-related expenses, a Medical Trust Fund for healthcare costs, and a Family Care Trust Fund to support day-to-day household expenses such as rent, utilities, and upkeep.
Organizations can also set up a Cash Trust to secure death benefits from pension, Group Life, WIBA, Group Personal Accident, etc., for employees who have passed on and have nominated minors (children under 18 years) as beneficiaries. Other Cash Trust solutions include Charitable, Benevolent, and Welfare Trust Funds to support charitable giving, children’s future goals, and welfare group members’ beneficiaries.
Beyond meeting specific financial needs, trust funds offer several long-term benefits. They help protect vulnerable beneficiaries such as children, elderly dependants, and people living with disabilities by ensuring funds are professionally managed until a time defined by the settlor when the beneficiary can access them.
Funds held in a trust can also be invested to generate returns over time, helping preserve and grow wealth for beneficiaries.
Also Read: Britam Launches Account for Parents to Secure Their Children’s Future Starting with KSh 1,000
Unlike assets that form part of a deceased person’s estate, assets held in a trust are generally not subject to the succession process, allowing beneficiaries to access support more quickly while reducing legal costs and maintaining privacy.
Trusts can also add a layer of asset protection, shielding trust-held funds from creditor claims or bankruptcy proceedings, provided the trust is properly established and managed.
Most importantly, they ensure the founder’s wishes are followed, with funds managed and distributed according to the instructions set out when the trust was created.
Also Read: Britam’s National Financial Strength Rating Upgraded to A
Family Trust
A Family Trust is a legal arrangement that enables individuals to protect, manage and transfer wealth from one generation to the next.
It can hold a wide range of assets, including land, residential and commercial property, businesses, shares, bonds, investment accounts and cash.
The Family Trust helps protect vulnerable beneficiaries, such as children and dependants, while ensuring the settlor’s wishes are carried out.
It can also help families avoid lengthy succession court processes, preserve wealth across generations, and protect trust assets from certain creditor claims.
Additionally, property transferred into a Family Trust may also qualify for tax benefits, including exemptions from stamp duty and capital gains tax.
What You Need to Set Up a Trust Fund
To set up a trust fund, the settlor must provide a copy of their national ID or passport, along with their KRA PIN.
Beneficiaries aged 18 and above must also provide copies of their ID or passport and KRA PIN, while those below 18 must submit a copy of their birth certificate.
Where a beneficiary is a minor, the appointed guardian must provide copies of their ID or passport and KRA PIN.
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