The will deals with the house and the shamba. But a good part of many families’ security sits elsewhere: a group life policy through the employer, a pension with a nomination form signed a decade ago, an individual policy nobody has reread since.
Do life insurance and pension benefits pass under a will?
Often they do not. Life insurance proceeds are paid to the beneficiary nominated under the policy, and retirement benefits are dealt with under the rules of the scheme and the member’s nomination , arrangements that typically operate outside the will and outside the probate process under the Law of Succession Act (Cap 160). That is efficient, but only if the nominations reflect the current family reality.
Why do beneficiary nominations go wrong?
- nominations made at induction and never revisited after marriage, divorce or the birth of children;
- outdated forms naming a parent, sibling or former spouse who is no longer the intended beneficiary;
- minor children named without any trust or guardian arrangement to receive and manage the funds;
- policies lost or forgotten by the family altogether.
How should nominations be structured?
Where beneficiaries are minors, consider a trust or a scheme-level arrangement so that proceeds are managed responsibly rather than paid into an unsupervised account. Where the intention is that particular assets go to particular people, align the nominations with the will , inconsistency between the two is a common source of family disputes. Insurance and benefits documents should be reviewed at the same time as the will, not on a separate cycle that no one remembers.
What legal and tax points apply to benefits?
Benefits payable on death are treated under the written law governing the particular product, including retirement benefits legislation; the statutes can be consulted on the Kenya Law website at https://www.kenyalaw.org/. Scheme trustees and insurers can confirm how a specific policy or scheme will operate, and those confirmations are worth obtaining in writing while the member is able to give instructions.
Nominations are the least glamorous and most consequential part of estate planning. CS Advocates LLP advises on aligning policies, pension arrangements and wills; where insurance disputes arise, our insurance law experience is available, and you can read more about the firm.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.