Estate administration refers to the legal process of managing and distributing the assets and liabilities of a deceased person, often referred to as the estate owner. It involves settling the financial affairs, including debts and taxes, and distributing the remaining assets to the rightful beneficiaries or heirs according to the deceased’s will or the laws of intestacy if there is no will.

Types of Estate Administration

The two main types of estate administration are:

1. Testate Administration

Testate administration occurs when the deceased person has left behind a valid will. The will specifies their wishes regarding the distribution of assets and the appointment of an executor or personal representative to administer the estate. The executor named in the will is responsible for carrying out the instructions outlined in the will and overseeing the estate administration process. The court must validate the will through the probate process (also referred to as propounding of a will) and grants legal authority to the executor to manage and distribute the estate according to the deceased’s wishes. The executor’s role involves gathering and valuing the assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries as specified in the will.

2. Intestate Administration

Intestate administration relates to a situation where the deceased person did not leave behind a valid will or if the will is deemed invalid by the court. In such cases, the estate is distributed according to the law of succession which determine how assets are distributed when there is no will. The court appoints an administrator, often a close family member to oversee the estate administration process. The administrator’s responsibilities are similar to those of an executor in testate administration and involve identifying and valuing assets, paying debts and taxes, and distributing the remaining assets according to the laws of intestacy, which prioritize spouses, children, and other close relatives.

Estate Administration Process in Kenya

Estate administration in Kenya is a crucial process that follows the passing/death of an individual to manage and distribute their assets to their beneficiaries. The Law of Succession Act provides a legal framework for the management and distribution of assets and settling of debts and obligations of the deceased.

The estate administration process can be lengthy and complex, but it is necessary to ensure that the deceased’s assets are distributed correctly. In Kenya, estate administration can be carried out through the Court or specific designated authorities, such as the Public Trustee, County Commissioner, or Deputy County Commissioner. The choice of authority depends on the value of the estate.

Estate Administration through the Public Trustee

According to the Law of Succession Act, the Public Trustee is empowered to administer estates with a gross value of Kshs. 3,000,000/= and below through certificates of summary administration. However, the Public Trustee has delegated some of their powers to the County Commissioner or Deputy County Commissioner. Therefore, acting on behalf of the Public Trustee, the County Commissioner or Deputy County Commissioner can administer estates with a gross value of Kshs. 100,000/= and below.

Estate Administration by the Public Trustee

The following are the key steps to administer the estate of a deceased person through the Public Trustee, County Commissioner, or Deputy County Commissioner:

1. Identification of Assets and Liabilities

The initial stage of estate administration by the Public Trustee, County Commissioner, or Deputy County Commissioner involves the identification of assets and liabilities of the deceased person. This crucial step entails comprehensively identifying and listing all assets and liabilities belonging to the deceased individual. It includes properties, bank accounts, investments, personal possessions, and outstanding debts. The dependants or interested parties responsible for estate administration must conduct a thorough inventory to accurately determine the value of these assets and liabilities. The dependants or interested parties should ensure that all assets are properly accounted for, and their values are accurately assessed.

2. Inventory and Valuation of Assets

The dependants or interested parties are responsible for preparing an inventory of the deceased’s assets, including properties, bank accounts, investments, and personal belongings. A valuation of these assets must also be conducted to determine their worth.

3. Opening a File

 To initiate the administration of a deceased person’s estate through the Public Trustee, County Commissioner, or Deputy County Commissioner, the dependants or interested parties should visit the respective office in the County where the deceased was last domiciled. The dependants or interested parties must pay a prescribed file opening fee and submit the  following documents:

a) two certified copies of the death certificate.

b) a completed and witnessed report of death Form.

c) a list of heirs obtained from the Chief  and verified by the Deputy County Commissioner.

d) certified copies of national identity cards or birth certificates of the deceased and the heirs.

e) copies of title documents, logbooks, or share certificates related to the deceased’s assets.

f) details of bank accounts and other investments held by the deceased.

g) full disclosure of the actual value of the estate.

h) a valuation report for immovable assets owned by the deceased.

 4. Verification and Distribution of the Estate

Upon the successful completion of the verification process of the relevant documents and beneficiaries by the Public Trustee, County Commissioner, or Deputy County Commissioner, the following actions will take place:

a) Discharge and Indemnity

A Discharge and Indemnity document will be issued, duly signed and witnessed. This document serves as proof that the estate or trust has been properly administered and distributed according to the applicable laws and regulations. It provides protection and releases the executor or trustee from any further liability or claims related to the administration of the estate or trust.

b) Distribution Account

A Distribution Account will be prepared and drawn up. This account provides a detailed breakdown of the assets, liabilities, and distributions made from the estate. It outlines how the assets are distributed among the beneficiaries, ensuring transparency and accountability in the distribution process.

Estate Administration through the Court

Estates with a gross value exceeding Kshs. 3,000,000/- must undergo the court process for administration. It is important to note that the court has jurisdiction to administer estates of any value, from zero to infinity, regardless of whether they fall within the Public Trustee’s or delegated authorities’ thresholds. For instance, beneficiaries have the option to approach the court for estate administration, even if the gross value of the estate is Kshs. 100,000/- or below.

In Kenya, the High Court and Resident Magistrates appointed by the Chief Justice are vested with jurisdiction to handle applications and resolve disputes related to the administration of a deceased person’s estate.  To gain legal authority to administer the estate, the administrator or executor must apply for either Letters of Administration or a Grant of Probate. Letters of Administration are obtained when there is no will, while a Grant of Probate is issued when a will exists.

The following are the key steps to administer the estate of a deceased person through the Court.

1. Identification of Assets and Liabilities

The initial stage of estate administration involves the identification of assets and liabilities of the deceased person. This crucial step entails comprehensively identifying and listing all assets and liabilities belonging to the deceased individual. It includes properties, bank accounts, investments, personal possessions, and outstanding debts. The executor or administrator responsible for estate administration must conduct a thorough inventory to accurately determine the value of these assets and liabilities. The executor or administrator should ensure that all assets are properly accounted for, and their values are accurately assessed.

2. Inventory and Valuation of Assets

The administrator or executor is responsible for preparing an inventory of the deceased’s assets, including properties, bank accounts, investments, and personal belongings. A valuation of these assets must also be conducted to determine their worth.

3. Application to the Court

An application for the administration of a deceased person’s estate is initiated by filing a Petition. This Petition can be filed by various individuals, including surviving dependants, close relatives, friends, or the Public Trustee. The Petition serves as a formal request to the court, seeking the grant of letters of administration to handle the estate’s administration. The Petition must be accompanied by following:

a) a letter from the Chief giving particulars of the deceased dependants.

b) a copy of the death certificate.

c) an affidavit which shall incorporate the following details:

•  the full names of the deceased.
• the date and place of his death, his last known place of residence, and his domicile at date of death.
• whether he died testate or intestate and, if testate, whether his last will was written or oral, and the place where and the date upon which it was made.
•  a full inventory of all his assets and liabilities at the date of his death (including such, if any, as may have arisen or become known since that date) together with an estimate of the value of his assets movable and immovable and his liabilities

In cases of total or partial intestacy the affidavit must contain the following:

• the names, addresses, marital state and description of all surviving spouses and children of the deceased. Where the deceased left no surviving spouse or child, the particulars of such person or persons who will succeed where intestate has left no surviving spouse or children are required.
• details of any beneficiary who is under the age of eighteen years or is suffering from any mental disorder.
• for the purposes of determining the degree of consanguinity (the measure of blood relationship or genetic connection with deceased), the Probate and Administration Rules has provided a table under the Second Schedule to guide.
• the relationship (if any) which the applicant bore to the deceased or the capacity in which he claims.
• if the deceased died testate leaving a written will, the names and present addresses of any executors named in the will.

d) the postal and residential addresses of the applicant.

e) an affidavit of justification of proposed administrator (s) which states the net worth of the proposed administrators.

f) an affidavit of justification of proposed sureties sworn by two people acting as sureties of the proposed administrator(s) with the sureties executing a guarantee that they will make good any loss which the estate of the deceased may suffer if the administrator breaches his/her duties in the administration of the estate to a set limit.

g) a consent by all persons that are also legally entitled to obtain the grant of letters of administration indicating that they have agreed to the Petition.

h) the original of the will (if the deceased left a written will).

Once the Petition for grant of letters of administration is filed in Court, the registrar of the Court will published in the Kenya Gazette to notify the general public of the application. The purpose of this notice is to provide an opportunity for anyone with objections or claims against the estate to come forward. A 30-day period is provided from the date of publication during which any interested party can raise objections to the grant of letters of administration to the Petitioner. If no valid objections are received within this period, the court may proceed with granting the letters of administration to the Petitioner.

It’s important to note that the grant of letters of administration provides the administrator with the authority to manage the assets of the deceased. However, it does not automatically grant the power to distribute the assets to the beneficiaries.

To obtain the power to distribute the assets, the letters of administration need to be confirmed by the Court and a Certificate of Confirmation of Grant issued. The confirmation process typically occurs after a lapse of six months from the date of the initial grant. However, the court may exercise discretion in compelling cases, taking into account the specific circumstances of the case.

The issuance of the Certificate of Confirmation of Grant by the Court finalizes the administration process and empowers the administrator to distribute the assets to the entitled beneficiaries in accordance with the applicable laws and the intentions of the deceased.

4. Settlement of Debts and Taxes

Once the Confirmation of Grant is issued, the executor or administrator has the responsibility of ensuring the settlement of all debts and taxes owed by the deceased person before the distribution of assets to the beneficiaries can take place. This encompasses various financial obligations, including but not limited to outstanding loans, mortgages, credit card debts, and taxes. It is the duty of the executor or administrator to identify and address these liabilities by making necessary payments or arrangements. Additionally, the executor or administrator is required to file the final tax return on behalf of the deceased person. This entails reporting the deceased person’s income and fulfilling any tax obligations that may arise from the estate during the administration process.

5. Distribution of Assets

Once all the outstanding debts and taxes of the estate have been settled, the executor or administrator is authorized to proceed with the distribution of the remaining assets to the beneficiaries. The distribution process should adhere to the instructions specified in the will, if a valid will exists. If there is no will, the distribution should follow the contents and provisions of the Certificate of Confirmation of Grant.

The executor or administrator should exercise due diligence and act in accordance with their fiduciary duty to ensure that the distribution is carried out with care and prudence.

6. Final Accounting

Following the distribution of assets, it is the duty of the executor or administrator to compile a final accounting report that outlines the complete financial picture of the estate. This report includes a detailed record of all assets, liabilities, and expenses incurred throughout the administration process.

The purpose of the final accounting is to provide transparency and accountability, ensuring that all financial matters related to the estate administration are accurately documented. This report helps beneficiaries, creditors, and the court understand how the estate’s assets were managed and allocated. Upon the final accounting to the satisfaction of all stakeholdres, the estate is considered settled, and the executor or administrator can proceed with closing the estate, officially concluding the administration process.

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If you need assistance or have any inquiries regarding Estate Administration in Kenya, we are here to help. Please feel free to reach out to us using the following contact information:

Telephone: 0202 148 300

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Email: info@dmklaws.co.ke or dmklaws@gmail.com

We are available to provide guidance, answer your questions, and offer support regarding estate administration matters. Don’t hesitate to reach out to us, and we will be glad to assist you.