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public trustee act kenya explained

Introduction

The Public Trustee Act of Kenya is a significant piece of legislation that governs the appointment, powers, and duties of the Public Trustee. This Act plays a crucial role in the administration of estates, particularly in situations where there is no appointed executor or where the family cannot agree on an administrator. The Act ensures that the estates of deceased persons are managed efficiently and in accordance with the law, providing a safety net for those who might otherwise be left without proper estate management.

Table of Contents

  1. Overview of the Public Trustee Act

  2. Appointment and Role of the Public Trustee

  3. Powers and Duties of the Public Trustee

  4. Administration of Estates

  5. Trusts and Investments

  6. Relevant Case Laws

  7. Conclusion

  8. Sources

1. Overview of the Public Trustee Act

The Public Trustee Act, Chapter 168 of the Laws of Kenya, was enacted in 1925. It provides for the appointment of a Public Trustee and defines their powers and duties. The Act is designed to ensure that the estates of deceased persons are administered properly, especially in cases where there is no executor or where the family cannot agree on an administrator.

The Act operates within the organizational framework of the Division of the Administrator General in the Office of the Attorney General and Department of Justice. This ensures that the Public Trustee's office is well-integrated into the broader legal and administrative framework of Kenya.

Source:

  • Public Trustee Act Cap. 168

2. Appointment and Role of the Public Trustee

Appointment

The Public Trustee is appointed by the Attorney General and operates under the Public Trustee Act. The appointment is crucial in situations where there is no executor named in a will, or where the named executor is unable or unwilling to act. The Public Trustee can also be appointed by the court in cases where the family cannot agree on an administrator.

Role

The primary role of the Public Trustee is to administer the estates of deceased persons. This includes collecting and managing the assets of the estate, paying any debts and taxes, and distributing the remaining assets to the beneficiaries. The Public Trustee also acts as a guardian for adults who are incapable of making decisions due to age, infirmity, or other reasons.

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3. Powers and Duties of the Public Trustee

Powers

The Public Trustee has several powers under the Act, including:

  • Applying for representation in respect of any estate brought to their attention.

  • Managing and investing the money of the estates they administer.

  • Acting as a trustee for any trust brought to their attention, provided there is no other trustee willing or capable of acting.

Duties

The duties of the Public Trustee include:

  • Keeping accurate accounts and records of all estates and trusts they manage.

  • Passing accounts in court as required.

  • Ensuring that all investments are made prudently and in the best interests of the beneficiaries.

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4. Administration of Estates

The administration of estates by the Public Trustee involves several key steps:

  1. Collection of Assets: The Public Trustee collects all assets belonging to the deceased, including bank accounts, property, and personal belongings.

  2. Payment of Debts and Taxes: The Public Trustee ensures that all debts and taxes owed by the deceased are paid from the estate.

  3. Distribution of Assets: After all debts and taxes have been paid, the remaining assets are distributed to the beneficiaries according to the will or, if there is no will, according to the laws of intestacy.

The Public Trustee may also apply for a grant of letters of administration or probate for estates whose gross value exceeds Kenya shillings three million (Kshs. 3,000,000).

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5. Trusts and Investments

The Public Trustee also manages trusts and investments. This includes:

  • Keeping accurate accounts and records of all trusts they manage.

  • Making prudent investments of trust money.

  • Ensuring that all trust assets are managed in the best interests of the beneficiaries.

The Public Trustee may be appointed to manage a trust if there is no other trustee willing or capable of acting. This ensures that the trust is managed properly and that the beneficiaries' interests are protected.

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6. Relevant Case Laws

Public Trustee v Wanduru

In the case of Public Trustee v Wanduru, Madan, J.A. stated that "adverse possession should be calculated from the date of payment of the purchase price to the full span of twelve years if the purchaser takes possession of the property because from this date, the true owner is dispossessed of possession." This case highlights the role of the Public Trustee in managing estates and ensuring that the rights of beneficiaries are protected.

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Njenga Karume Trust Case

In the case involving the Njenga Karume Trust, the court found that the confidence of the beneficiaries in the trustees had irretrievably broken down. This case underscores the importance of trust and transparency in the management of trusts by the Public Trustee.

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Conclusion

The Public Trustee Act of Kenya is a vital piece of legislation that ensures the proper administration of estates and trusts. The Public Trustee plays a crucial role in managing the estates of deceased persons, particularly in cases where there is no appointed executor or where the family cannot agree on an administrator. By providing a clear framework for the appointment, powers, and duties of the Public Trustee, the Act ensures that the interests of beneficiaries are protected and that estates are managed efficiently and in accordance with the law.

Sources

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