[2016] KEHC 6384 (KLR)
The court found that the administrators' proposed distribution of capital assets was equitable and provided for all beneficiaries, including the protestors, and that the majority of beneficiaries supported this mode. The protestors did not provide sufficient justification for their alternative proposal regarding...
Source-derived case information.
- Citation
- [2016] KEHC 6384 (KLR)
- Parties
- Applicant: T N M; Applicant: M W M; Respondent: J W M; Respondent: E S M M
- Court
- High Court
- Court Station
- High Court at Nakuru
- Jurisdiction
- Kenya
- Case Number
- Succession Cause 640 of 2012
- Procedural Posture
- Succession Cause / Ruling on Confirmation of Grant and Distribution of Estate
- Outcome
- Grant confirmed with modifications to distribution of shares and cash in bank.
- Judges
- AG Ndung'u
- Legal Topics
- Succession, Confirmation of Grant, Distribution of Estate, Beneficiaries Rights, Trusts for Minors
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
T N M
Applicant
M W M
Applicant
J W M
Respondent
E S M M
Respondent
Procedural Posture
Succession Cause / Ruling on Confirmation of Grant and Distribution of Estate
Legal Issues
- 1 What is the appropriate mode of distribution of the deceased's estate among the beneficiaries under the Law of Succession Act?
- 2 Should the court adopt the administrators' or protestors' proposed distribution?
- 3 How should shares and cash in bank forming part of the estate be distributed equitably among all beneficiaries, including minors?
Ratio Decidendi
The court found that the administrators' proposed distribution of capital assets was equitable and provided for all beneficiaries, including the protestors, and that the majority of beneficiaries supported this mode. The protestors did not provide sufficient justification for their alternative proposal regarding capital assets. However, regarding shares and cash in bank, the court determined that a more equitable approach was necessary. The court ordered that all shares be sold and the proceeds distributed equally among all beneficiaries, and that cash in bank be ascertained and distributed with 40% for the benefit of the minor T N W (held in trust by T N M), 40% to the two widows...
Court Disposition
Grant confirmed with modifications to distribution of shares and cash in bank.
Orders
- All capital assets to be distributed as proposed by the administrators in paragraph 5 of the affidavit in support of summons for confirmation of grant sworn by T N M and M W M on 31st March, 2014.
- All shares listed in the affidavit to be sold and proceeds distributed equally among all beneficiaries, with T N W's share held in trust by T N M.
Full Case Text
Judgment text and source record
130 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAKURU
SUCCESSION CAUSE NO.640 OF 2012
IN THE MATTER OF THE ESTATE OF J M M – DECEASED
T N M
M W M..............................................................................................PETITIONERS
RULING
By a summons for confirmation of grant dated 31st March, 2013,T N M and M W M moved this court to have the grant of letter of administration in respect of the estate of J M M (deceased) on the 18th December, 2012 confirmed.
The summons is grounded on the affidavit of T N M and M W M sworn on the 31st March, 2014.
Annexed to the summons is a consent to confirmation of grant (General form) signed by T N M, M W M, J M M, M W M, L K M, T N W , E L L and R W M . The 1st two are the widows of the deceased while the rest are children of the deceased save for R W M who is a niece, E L L (an adopted child) and T N W a grandchild.
J W M, E S M M and E W M (all children of the deceased) did not sign the consent.
J W M and E S M M have opposed the mode of distribution proposed by the administrators of the estate and an affidavit of protest is on record. The administrators have in paragraph 5 of the affidavit in support of the summons for the confirmation of grant proposed the following distribution of shares to the beneficiaries:
i) M W M - PLOT NO.MAU SUMMIT
CENTRE L.R [particulars withheld] - - WHOLE SHARE
ii) T N W – LR [particulars withheld]
– - WHOLE SHARE
iii) J W M – LR[particulars withheld] – - WHOLE SHARE
iv M W M - LR [particulars withheld] – - WHOLE SHARE
v) E W M - LR [particulars withheld] – - WHOLE SHARE
vi) E S M M - LR [particulars withheld] – - WHOLE SHARE
vii) L K M - LR [particulars withheld] – - WHOLE SHARE
viii) T N M - LR [particulars withheld] – - WHOLE SHARE
ix) M W M - LR [particulars withheld] – - WHOLE SHARE
x) T N M and M W M - LR [particulars withheld] - EQUAL SHARES
ix) E L L - LR [particulars withheld] - WHOLE SHARE
xii) L K M -LR [particulars withheld] - WHOLE SHARE
xiii) T N M - LR[particulars withheld] - WHOLE SHARE
xiv) T N M, M W M LR [particulars withheld]
J M M - EQUAL SHARE
xv E W M - LR [particulars withheld] - WHOLE SHARE
xvi) M W M- NKU MUNICIPALITY BLK.[particulars withheld] - WHOLE SHARE
xvii) M W M and T N M - LR [particulars withheld] - EQUAL SHARES
xviii) LR[particulars withheld] -
a) M W M - 1 ACRE
b) L K M - 1 ACRE
c) T N M - ½ ACRE
d) R W M - ½ ACRE
xix) LR [particulars withheld] -
a) E WM
b) J W M
c) E S M M - EQUAL SHARE
xx) LR [particulars withheld] - R W M – WHOLE SHARE
xxi) LR [particulars withheld] - R W M - WHOLE SHARE
xxii) LR [particulars withheld] – J M M - WHOLE SHARE
xxiii) LR.[particulars withheld] -T N M - WHOLE SHARE
xxiv) PLOT [particulars withheld] - M G
TRADING CENTRE - T N M - WHOLE SHARE
xxv) KENYARE SHARES -T N M - WHOLE SHARE
xxvi) KCB SHARES - M W M - WHOLE SHARE
xxvii) UNIVEVER TEA SHARES - T N M - WHOLE SHARE
xxviii)STANDARD CHARTED SHARES – M W M – WHOLE SHARE
xxix) KENGEN SHARES - T N M - WHOLE SHARE
xxx) B.A.T. SHARES - M W M - WHOLE SHARE
xxxi)SARAFICOM SHARES - T N M - WHOLE SHARE
xxxii) MONEY IN CO-OP. BANK - M W M & T N M - EQUAL SHARE
xxxiii) MONEY IN STANDARD CHARTERED
SAFARI SAVINGS - M W M & - T N M - EQUAL SHARE
xxxiv) MONEY IN EQUITY BANK - M W M & - T N M - EQUAL SHARE
In the affidavit of protest, J W M and E S M M have in paragraph 4 thereof proposed the following mode of distribution:
PLOT NO.MAU SUMMIT CENTRE LR/[particulars withheld] - MW M - WHOLE SHARE
KIAMBOGO/KIAMBOGO BLK [particulars withheld] -T N M and
- M W M - EQUAL SHARE
LR BLK [particulars withheld] (MWARIKI) – J W M – WHOLE SHARE
LR [particulars withheld] ,( MWARIKI ) - M W M – WHOLE SHARE
LR [particulars withheld] (MWARIKI) - E W M M – WHOLE SHARE
LR BLK[particulars withheld] (MWARIKI) – E W M – WHOLE SHARE
LR[particulars withheld] (MWARIKI) – L K M – WHOLE SHARE
LR [particulars withheld] (MWARIKI) –T N M – WHOLE SHARE
LR [particulars withheld] (MWARIKI) – J M M – WHOLE SHARE
LR [particulars withheld] (MWARIKI) (SOLD) ADMINISTRATORS TO TRANSFER (T N M AND M W M)
LR [particulars withheld] (HARAKA) - E L L – WHOLE SHARE
LR [particulars withheld] - L K M– WHOLE SHARE
LR[particulars withheld] (MWARIKI) – T N M - WHOLE SHARE
LR [particulars withheld] (HARAKA) - T N M, M W M AND J M M – EQUAL SHARE
LR[particulars withheld] (HARAKA) - E S M M - WHOLE SHARE
NKU MUNICIPALITY BLK.[particulars withheld] – E S M M and M W M - (TO HOLD IN TRUST OF THE ESTATE) (REVENUE COLLECTED BE SHARED BY ALL BENEFICIARIES)
LR [particulars withheld] (HARAKA) - J M M – WHOLE SHARE
LR [particulars withheld] (HARAKA) - E S M M – WHOLE SHARE
LR [particulars withheld] (HARAKA) - J W M – WHOLE SHARE
LR [particulars withheld] (HARAKA) -
(a) M W M – 1 ACRE
(b) L K M – 1 ACRE
(c) T N M – ½ ACRE
(d) R W M – ½ ACRE
LR [particulars withheld] (HARAKA) -(a) E W M – 1 ACRE
(b) J W M – 1 ACRE
(c) E S M M – 1 ACRE
LR [particulars withheld] (HARAKA) - R W M – WHOLE SHARE
LR [particulars withheld] – M W M – WHOLE SHARE
LR [particulars withheld] (MWARIKI) – J M M – WHOLE SHARE
NKU MUNICIPALITY [particulars withheld] – T N M and J W M - (TO HOLD IN TRUST OF THE ESTATE) (REVENUE COLLECTED BE SHARED BY ALL BENEFICIARIES)
[particulars withheld] -MBURU GICHUA
TRADING CENTRE – T N M - WHOLE SHARE
KENYA RE SHARES
KCB SHARES
UNIVEVER TEA SHARES
STANDARD CHARTED BANK SHARES
KENGEN SHARES
B.A.T. SHARES
SARAFICOM SHARES
(ALL SHARES TO BE SOLD AND MONEY TO BE SHARES BY ALL BENEFICIARIES
MONEY IN CO-OP. BANK – TO BE SHARED EQUALLY BY ALL THE BENEFICIARIES
MONEY IN STANDARD CHARTERED BANK – TO BE SHARED EQUALLY BY ALL THE BENEFICIARIES
MONEY IN EQUITY BANK – TO BE SHARED EQUALLY BY ALL THE BENEFICIARIES
In a further affidavit of protest, the two propose in paragraph 4 thereof that shares of 2 other properties be distributed as follows:
[particulars withheld] – T N M – WHOLE SHARE
[particulars withheld] – M W M – WHOLE SHARE
Counsel for the petitioners did file brief submissions.
I have had occasion to consider the summons for confirmation of grant, the supporting affidavit by the two (2) petitioners and the consent signed by some of the beneficiaries.
I have considered the affidavit of protest and the further affidavit of protest and the mode of distribution proposed thereon.
Of determination is the mode of distribution of the estate herein amongst the beneficiaries the assets and beneficiaries having been ascertained.
The Law of Succession Act (Cap 160 Laws of Kenya) and specifically under Section 27 thereof donates complete discretion to the court to order specific share of the estate to be given to each dependant or to make such other provision for him by way of periodical payments or a lump sum and to impose such conditions as it deems fit.
As held in the decision in Mary Rono V. Jane Rono & Another, Civil Appeal No.66 of 2002, the discretion aforesaid, like all discretions exercised by courts, must be made judiciously, that is to say, on sound legal and factual basis. All the while the emphasis ought to be on a fair distribution of the deceased's net estate.
The Administrators herein are the wives to the deceased and mothers to the beneficiaries. I have considered the proposal made by the administrators in respect of the distribution of the capital assets. I have also factored in the distribution proposed by J W M and E S M M. It is manifestly clear from the distribution that the administrators have endevoured to distribute the estate in so far as the capital assets are concerned equitably.
It is commendable that the two (2) wives of the deceased have come together and agreed on the distribution of the estate to their respective children without acrimony. Indeed, the majority of the beneficiaries agree with them. Of note is that the protestors have been substantially provided for as far as capital assets are concerned.
The protestors have not laid any basis for their proposed mode of distribution. Where their proposal is at variance with that of the administrators, no explanations are given to warrant interference with the distribution as proposed by the administrators. Suffice to state that distribution cannot be guided by the whimsical wishes of a minority beneficiary more so where there is evidence that they have been substantially and equably provided for.
As regards shares and cash in bank forming part of the estate herein, I am persuaded that the administrators ought to have devised a more equitable distribution. I note from the record that there is a minor beneficiary by the name T N M, a granddaughter to the deceased. She would obviously benefit appropriately by having disposable cash available to take care of her schooling needs. That alone, however does not justify having all the cash.. in bank going to the administrators. Tellingly, the amounts in the various accounts named are not indicated. No proper justification is given by the administrators why.
The protestors propose that all the shares be sold and proceeds be shared equally among all the beneficiaries. This is an equitable proposal.
Consequently, this court proceeds to confirm the grant herein on the following terms:
That all capital assets be distributed as proposed by the administrators in paragraph 5 of the affidavit in support of summons for confirmation of grant sworn by T N M and M W M on 31st March, 2014.
That all shares as listed in the affidavit aforesaid be sold and proceeds be distributed to all beneficiaries equally. For the purposes of the interests of T N M, she will be considered a unit for the purposes of distribution of the proceeds from the share with her share going to T N M to hold in trust.
That all cash in bank be ascertained and same to be distributed as hereunder:
40% for the benefit of T N W to be held in trust by T N M
40% to the 2 widows equally
20% to all other beneficiaries equally.
Orders accordingly.
Dated, Signed and Delivered at Nakuru this10th day of March, 2016.
A. K. NDUNG'U
JUDGE