How Can I Protect My Children’s Inheritance?

Protecting your children’s inheritance is a cornerstone of responsible wealth stewardship. Whether your children are minors, adult dependants, or part of a blended family, proactive estate and legacy planning ensures that your intentions are protected, your assets are preserved, and your family’s long-term security is maintained. 

This Navigator outlines key strategies for protecting children’s inheritances under Kenyan law, integrating best practices adopted by leading international private-client, family-office, and wealth-advisory firms. 

Below is a list of methods that can be used as a way to protect children’s inheritance, as well as the pros and cons of the various methods. 

1. Make a Legally Enforceable Will 

A Will is the foundational instrument for structuring inheritance and ensuring an orderly transition of assets. It enables you to: 

1. specify how your assets should be distributed; 

2. appoint guardians for minor children; 

3. nominate trusted executors; 

4. reduce the likelihood of disputes; and 

5. minimize probate delays under the Law of Succession Act. 

A Will may also impose age-based conditions, staged distributions, or behavioral requirements to promote financial maturity and responsible stewardship among beneficiaries. 

2. Disadvantages of a Will Compared to a Family Trust (Kenyan Context) 

While a Will is essential, it presents several inherent limitations when compared to a Family Trust—limitations which are consistently recognized in global private-client practice. The disadvantages of a Will include: 

1. Probate is mandatory and often slow. Probate is a court-supervised process that may take months or years, delaying access to school fees, medical care, family maintenance, or business continuity. 

2. A Will becomes a public document upon probate, exposing asset details, beneficiary identities, and distribution structures. A Family Trust preserves confidentiality. 

3. Wills are susceptible to legal challenges relating to capacity, undue influence, fraud, or execution errors. Trusts provide far greater resilience against contestation. 

4. Assets passing under a Will form part of the estate and may be exposed to creditors, liabilities, and marital property claims, whereas Trust assets are typically ring-fenced. 

5. A Will provides limited post-death control unless combined with a testamentary trust. Family Trusts allow structured long-term wealth governance and management. 

6. A Will facilitates a one-time distribution, whereas a Family Trust supports structured multi-generational planning. 

3. Use of Trusts for Long-Term Protection and Control 

Trust structures are central to sophisticated estate planning worldwide. In Kenya, as in most jurisdictions, trusts offer distinct advantages for families who wish to ensure: 

1. long-term asset protection; 

2. guardianship and tailored support for vulnerable beneficiaries such as children; 

3. professional management of family wealth; 

4. stability and continuity of family businesses; and 

5. preservation and controlled deployment of wealth across generations i.e. legacy protection. 

Common structures include lifetime (inter vivos) trusts, testamentary trusts, family business/shareholding trusts, and charitable or philanthropy trusts. 

4. Advantages of Using a Family Trust 

Family Trusts are a cornerstone of international best practice in succession planning. They provide structuring advantages unmatched by simple testamentary instruments. 

1. Trusts protect assets from claims, liabilities, business risks, marital disputes, and imprudent financial behavior by beneficiaries. 

2. Trusts preserve wealth across multiple generations through structured management, investment and distribution policies. 

3. Trust-owned businesses enjoy stable ownership, orderly succession, and professional governance. 

4. Trusts allow detailed customization, including age thresholds, education provisions, staggered distributions and special-needs planning. 

5. Trust assets bypass probate, ensuring uninterrupted provision for maintenance, school fees, healthcare, and business operations. 

6. Trusts maintain confidentiality over family wealth, governance decisions, and beneficiary arrangements. 

7. Trusts enhance structuring and tax efficiency in inter-generational transfers and cross-border planning. 

8. Trusts effectively address the unique needs of blended families by balancing the interests of all dependants. 

5. Ring-Fence Key Assets for Children 

Parents may choose to earmark specific assets—through a Will, Trust, or lifetime gifts—to secure children’s entitlements, including: 

1. family homes or residential properties; 

2. agricultural or investment land; 

3. specific assets such as cars; 

4. shares in listed or private companies; 

5. investment portfolios; and 

6. life insurance proceeds. 

6. Use of Life Insurance as an Estate-Planning Tool 

Life insurance is widely used to strengthen inheritance planning by: 

1. providing immediate liquidity; 

2. funding education, healthcare, and maintenance; 

3. equalizing inheritances where assets differ in value or form; and 

4. capitalizing Family Trusts for long-term support to ensure lasting financial stability. 

Insurance proceeds may be directed into a Family Trust for structured and professionally managed periodic deployment. 

7. Considering Nuptial Agreements in Blended and Modern Families 

A nuptial agreement is a legal agreement between spouses, or future spouses, that sets out how their property, finances, and assets will be owned, managed, or shared during the marriage and if the marriage ends - through divorce or separation. 

Nuptial agreements help clarify: 

1. separate property; 

2. joint marital property; 

3. assets reserved exclusively for children; and 

4. expectations concerning family wealth. 

Such agreements are increasingly being recognized in Kenya and align with international approaches to wealth preservation and family governance. 

8. Protecting Family Businesses Through Structured Succession 

Family businesses require forward-looking governance to ensure continuity. Best practice includes: 

1. family constitutions and governance policies; 

2. shareholder agreements with clear succession mechanisms; 

3. trust-based business ownership structures; and 

4. family councils, advisory boards, and professional governance frameworks. 

These tools ensure proper management, strengthen stability and protect long-term enterprise value. 

9. Appointment of Guardians and Trustees for Minor Children 

Succession plans should clearly distinguish between: 

1. guardians responsible for the personal welfare and upbringing of children; and 

2. trustees responsible for managing and deploying inheritance for their benefit. 

This dual structure aligns with international standards for family protection. 

10. Addressing Special Circumstances 

Some family circumstances require enhanced and tailored planning strategies, including: 

1. children with disabilities or complex needs; 

2. children studying or living abroad; 

3. children vulnerable to exploitation or manipulation; or 

4. children from multiple relationships. 

Specialized trust provisions can ensure equitable and long-term protection. 

11. Review and Update Your Plan Regularly 

Estate planning should be reviewed every 2–3 years or upon key life events, including: 

1. marriage or divorce; 

2. birth or adoption; 

3. acquisition or disposal of significant assets; 

4. relocation to another jurisdiction; or 

5. business restructuring. 

Regular updates ensure that your plan remains aligned with your intentions and complies with evolving legal and financial dynamics. 

Contact Us 

For bespoke guidance on wealth structuring, estate and succession planning, family business governance, philanthropy, and lifestyle or global mobility strategies, please contact our WELL Practice: 

WELL Practice (Wealth, Estate, Legacy & Lifestyle) 
E: wellpractice@cmadvocates.com 

Head Office – Nairobi, Kenya 
I&M Bank House, 7th Floor, 2nd Ngong Avenue 
E: law@cmadvocates.com 

Mombasa Office – Kenya 
Links Plaza, 4th Floor, Links Road, Nyali 
E: mombasaoffice@cmadvocates.com 

Regional Offices: 
Uganda | Tanzania | Rwanda | Zambia | Ethiopia | South Sudan 

Disclaimer 

This CM Navigator (November 13, 2025) is provided for general informational purposes only and does not constitute legal or professional advice. For personalized guidance, please contact CM Advocates LLP.