About Britam Holdings Plc
Britam Holdings Plc is a leading diversified financial services Group listed on the Nairobi Securities Exchange and with a presence in seven countries in Africa namely; Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi. The Group offers a wide range of financial solutions in Life Assurance, General Insurance, Health Insurance, Retirement Planning, Asset Management, Property and Trust services. We are committed to safeguarding our customers’ dreams and aspirations through a bouquet of financial services.
About Britam Trust Services
Britam Trust Services is a subsidiary of Britam Holdings Plc. It was established to close the gap in safeguarding of assets (both financial and tangible) that have been acquired by our clients, both individual and institutional, during the course of their lives. Britam Trust Services was incorporated to provide controlled and efficient set-up and management of trusts in Kenya. The provision of trusts services by Britam is one of the key reasons that has led to its remarkable growth to become an influential player in the financial services sector.
What is a Trust?
A trust fund is a legal arrangement in which assets such as cash, property or investments are held and managed by a trustee (such as Britam Trust Services) on behalf of a beneficiary or group of beneficiaries. The person who establishes the trust, called the settlor, founder or grantor sets specific instructions of how the assets held in trust should be managed and/or distributed during his/her lifetime or in the event of death.
What is the Britam Trust Fund ?
The Britam Trust Fund provides a safe and efficient platform for the professional management of assets on your behalf and on behalf of your loved ones so as to guarantee that they benefit your family during your lifetime and even in the unfortunate event of your demise.
As a parent or founder of the trust, you will have full control over the utilization of the assets under Trust. In case of death, the trust will continue to cater for your children’s needs until they attain a specified age (above 18) upon which they may have access to the trust fund. With the Britam Trust Fund, you can set up a trust with your children’s current and future needs in mind e.g. education, medical care, upkeep etc.
Some need-based trust funds you should consider:
- Education Trust Fund – Caters for the beneficiary’s school fees, books, uniform, trips etc.
- Medical Trust Fund – Offsets medical bills and/or pays for annual medical cover premium.
- Family Care Trust Fund – Can cater for several specified family’s needs e.g education, medicare, upkeep and other monthly expenses.
- Charitable Trust Fund – Fund the causes that matter to you.
- Milestone Trust Fund – Fund your children’s dreams upon achieving certain targets as specified by you or them.
- Welfare Trust Fund – For groups of people who come together for a common goal but have different beneficiaries who would take over in the event of their demise.
Benefits of Britam Trust Fund
- Predefined purpose of funds or assets held in trust: Assets held in trust are administered as per the settlor’s wishes and instructions; also known as the purpose of trust. This mitigates mismanage- ment, ensures accountability and eventually preservation of wealth, not only during your lifetime but also in the unfortunate event of death.
- Avoid Succession Court Process: An asset held in trust does not form part of the settlor’s estate in the event of death. It therefore bypasses Succession Court process thus saving time, cost and can also reduce dispute among surviving family members.
- Fund Investment: Trust funds are strategically invested to maximize long-term wealth growth and financial security.
- Secure Your Legacy: Preservation of your hard earned wealth thus safeguarding your children’s future by ensuring funds are available to cater for their needs e.g. education, medicare etc.
- Tax Benefits: Property transferred to a Family Trust is exempt from Stamp Duty and Capital Gains Tax.
- Peace of Mind: A trust provides a controlled and predictable transition of your assets from yourself to your loved ones now and in future.
Frequently Asked Questions
1. Who can access the funds in the Trust Fund?
The Settlor (founder of the Trust Fund) has control over the funds held in the Trust Fund and is able to withdraw from the trust. Also, the beneficiary shall be allowed to access the funds in Trust at the age (above 18 years) that has been specified by the settlor.
2. What happens to the funds/assets held in Trust once I pass on?
The beneficiary continues to benefit (e.g. pays school fees, medicare etc.) from the funds held in trust until the age (above 18years) that the settlor had specified that the Trustee should hand over any funds to him/her.
3. Can a trust protect future or expected benefits from my investments or insurance?
Yes, one can name a trust as a beneficiary for their insurance policies, pension plans, group life benefits etc., that way, in the unfortunate event of death, the funds are secured under the trust where your only child/loved ones can access them.
4. Can one change the purpose (instructions) of the funds held in Trust?
Yes. However, this can only be done by the settlor.
5. Are the funds held in Trust invested?
Yes, assets held in Trust are invested to earn long term returns.
6. Which assets can be held in Trust?
Any asset you consider valuable: Cash, property, businesses etc.
Setting Up a Trust Fund
To set up a trust fund, the following documents will be required:
- Duly filled trust application form.
- Settlor(s) copies of ID or passport and KRA PIN.
- Beneficiary(s) copies of birth certificate (if below 18 years) or ID or passport and KRA PIN (if above 18 years).
- Guardian(s) copies of ID or passport and KRA PIN (If any beneficiary is a minor.)
Interested?
Contact our Britam Financial Advisor
Gallin Wekesa: 0712870447: gwwekesa@britam.com, gallywexa@gmail.com