Legally, this term refers to succeeding the rights of another person especially property and transferring the ownership rights from the deceased to the one living. In other terms, this is also known as the law of inheritance. Each country has laid down rules and regulations that guide how succession is done. The laws of Kenya stipulate what happens after a person dies what to be done for the transfer to be legal.
Importance of succession planning
Planning for succession is very important for each and every person who owns assets. There are various ways benefits that you stand gain when you have a plan for your property succession.
Sense of security
This is the state of being worry free and having surety that in case of illness or untimely death your property is safe. Further, death being unpredictable, you may be having plans in place on what to do it the property and when you have a succession plan this can go on without much interruption. This is possible because you have made identification of people who have your interests and are ready to decide on your behalf.
Gives your property to rightful claimants
When death happens there is a likelihood of having several claimants in the same property. With a clear succession plan in place, the chances of having conflicts is near zero thus ensuring the rightful claimants get the legal ownership. This is why you should plan early to avoid property feuds that can face your children and dependants.
It is a powerful tool for dispute resolution
Disputes involving property can be messy and at times end up in death or prolonged court cases. However, when we have two people claiming ownership of a property and we have a succession plan it place, it acts as the tool for resolving the dispute.
Enables significance reduction of unclaimed assets
Unclaimed assets are valuable items that continue to lie idle without any legal claims by the rightful owners. When you are having a succession plan in place, chances are you will reveal the properties you own to your beneficiaries and in case of death they can claim ownership. When there is no plan, the likelihood of them becoming unclaimed is high.
Types of Property Succession
Property succession exists in two main types: testate and intestate succession. In this section, we are going to explore each of the two so that at the end of this article, you have all the information you need when planning. It is important to note that that each country has laws regulation how succession is done.
Testate succession
Testate succession when a person dies and has left behind a will. A will is the legal declaration of how a person would desire his or her property is handled after they die. Having a will is very important as it gives you the ability and control of how you would wish your property distribution. Further, it avoids family wrangles surrounding property that may prolong in a court of law.
There are two types of wills: oral and written will. The validity of wills lies on the presence of witnesses. For an oral will, it has to be witnessed by two or more witnesses of sound mind of full age. For written will, the validity is pegged on signatures of two or more witnesses with competence.
It is important to note that the will has no legal effect until the maker dies. While he or she is alive, it neither limits his rights of ownership nor confers any benefits to anyone. Beneficiaries under a will do not acquire an interest in the property before the testator’s death. The following are the reasons why you should consider writing a will today:
- You will protect your family and those you love
- A will helps to avoid unnecessary court cases
- Prevents family disputes
- Give you liberty to select the person to manage your property
- You decide who will take care of your children
- Improves your overall mental health
- Saves time and costs that may come as a result of court cases
Intestate succession
This is a type of succession when one dies without a will or the will is contested and faces invalidation. There are numerous ways provided by law on how succession should happen in such a case
Married and with children
The spouse has a right to personal and household items. In addition, they have life interest to property, however, this ends in case they marry another person. Further the children still have a right to the property.
Married with no children
The spouse gets all personal and household belongings up to the first $100 OR 20% of the estate whichever is bigger. However, in case they choose to remarry the interest to the properties come to an end.
Not married and have children
The children have rights to the entire property once the attain the age of 18 years which is considered adulthood.
Not married with no children
In this case the property goes to family members in this order:
- Father, if not alive
- Mother, if deceased
- Brothers and sisters equally, is still deceased
- Step brothers and sisters, if not alive
- Relatives close to you, if not alive
- The property goes to the state
Differences between probate and succession?
This is the process which transfers ownership of the property such as a title deed from the deceased person to those who inherit. A succession is the process of settling a deceased person’s estate and distributing the property to those who inherit after the debts are paid. This process is called probate in other states.
Bottom line
Succession planning is very important for everyone who owns land. We believe this content will help you make more solid decisions around your properties and estates so that you avoid legal cases that can come after death.