Understanding Gifts in Succession: Lessons from the Gedion Manthi Nzioka Estate Case

In our previous article, we discussed the legal rules about gifts made while a person is alive (gifts inter vivos) and gifts made in anticipation of death (gifts mortis causa) under Kenyan succession law.

The High Court ruling in Machakos, delivered on November 25, 2015, in the case of In re Estate of the Late Gedion Manthi Nzioka (Deceased), illustrates how these principles are applied. This article examines the case and its implications for estate planning and succession in Kenya.

The Case Background

The case involved Gedion Manthi Nzioka’s estate, who died in 1974. His estate included several properties, notably the Syokimau farm, Kimathi House No. A17, Kawethei Plot No. 43, and Kangundo Plot No. 141. The estate’s administrators, appointed in 2010, aimed to distribute the estate based on an agreement among the beneficiaries dated September 1, 2010. This agreement was significant as it outlined the estate distribution among the beneficiaries. However, a dispute arose over the Syokimau farm, which one beneficiary, Joyce Mathei Nziuko, claimed was gifted to her by the deceased during his lifetime.

The Dispute Over the Syokimau Farm

Joyce Mathei Nziuko argued that the Syokimau farm was given to her by her late father as a gift for her support and sacrifices. She claimed the gift was made during a family meeting with other beneficiaries present. Joyce had taken possession of the property, fenced it, and protected it from squatters. However, no written documentation supported this claim, and the property remained registered in her father’s name.

Other beneficiaries, including George Nziuko and Henry Muli Nziuko, challenged this claim. They argued that Joyce was only 11 years old when their father died, making it unlikely that he gifted her the property.

They also pointed out the lack of evidence, such as a written agreement or transfer documents, to prove the gift. They proposed that the Syokimau farm be sold and the proceeds shared equally among all beneficiaries as agreed in 2010.

The Court’s Ruling

The High Court, presided over by Justice P. Nyamweya addressed two key issues:

Whether the Syokimau farm was part of the deceased’s estate and available for distribution.
If so, how should the property be distributed?

Was the Syokimau Farm a Valid Gift?

The court examined whether the alleged gift to Joyce met the legal standards for either a gift inter vivos or a gift in contemplation of death, as outlined in Section 31 of the Law of Succession Act.

For a gift in contemplation of death to be valid, several conditions must be met, including that the donor was expecting death due to illness or imminent danger and that the gift was delivered to the beneficiary. The court found no evidence that Gedion Manthi Nzioka made the gift while contemplating death, ruling out this type of gift.

For a gift inter vivos, the law requires the gift to be completed through a registered transfer (for land), a written instrument, or a declaration of trust. Since the Syokimau farm was still registered in the deceased’s name and no written evidence of the gift was provided, the court concluded that the gift was incomplete.

The court also noted that Joyce’s mother, who some claimed had made the gift, had no legal authority to gift property owned by the deceased without evidence of his intent or transfer.

The court emphasised that incomplete gifts, whether oral or written promises, cannot be enforced unless the donor’s actions create a legal obligation. In this case, the lack of documentation and the disputed family meeting meant Joyce could not prove ownership. The court ruled that the Syokimau farm remained part of the deceased’s estate.

Distribution of the Estate

With the Syokimau farm confirmed as part of the estate, the court ordered its equal distribution among all beneficiaries, as Section 38 of the Law of Succession Act required. This section mandates that a deceased’s estate be divided equally among surviving children when there is no will.

The court also upheld the 2010 agreement for the other properties, directing that they be sold, with proceeds shared equally, and prioritising occupants to purchase at an agreed price.

Four Key Takeaways for Estate Planning

The Gedion Manthi Nzioka case highlights four critical lessons for estate planning and succession in Kenya:

Document Gifts Clearly: A valid land gift must be completed through a registered transfer or a written instrument. Oral promises or undocumented agreements are not legally enforceable.
Understand Legal Requirements: Gifts in contemplation of death have strict conditions under Section 31 of the Law of Succession Act. Such gifts will not hold up in court without evidence of the donor’s intent and delivery.
Register Property Transfers: Property remaining in the deceased’s name is considered part of their estate, regardless of claims of gifting, unless properly transferred during their lifetime.
Seek Legal Advice: Disputes over gifts and estate distribution can be complex. Consulting a succession lawyer can help ensure your wishes are legally binding and prevent beneficiary conflicts.

Conclusion

The ruling in the Estate of Gedion Manthi Nzioka underscores the importance of proper documentation and legal compliance in estate planning. At Kubwa and Company Advocates, we are committed to helping you navigate the complexities of succession law in Kenya. Whether you’re drafting a Will, transferring property, or resolving estate disputes, our experienced team is here to guide you.

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