| dc.description.abstract | This study was predicated by an apparent lack of concern over the accountant's role in Estate Planning in Kenya, as compared with some other countries like,
tbe United States. H~nce, the main purpose of the study
~s to identify the role that accoun~ants pl~y iD e6tate planning in Kenya, and establish the extent to which they p1ay this role.
For the field part of the research, a sample of 16 accounting firms, is insurance firms, 3 commercial banks and 2 officers in the public trustee office were selected.
n~fferent questionnaires were used to collect data from the various responden ts r-e gard.ing their perception of the estate planning issue.
The questionnaires received from the respondents
and used in the study comprised; 10 from accounting firms,
5 from insurance firms, 3 from banks and 1 from the public
tr-ustee office. ~tosj~of the r esponses w er-e analysed sepo.r.J."- tely. They are divided into three main sections: the need
for accountant's in estate planning in Kenya; estate planning services rendered by accountants in Kenya: and limitations
and some of the possible solutions to some of the problems
encountered by accountants in estate planning in Kenya.
The principle finding of lhe study is, that quite a number of accountants are involved in some aspect or other o£ estate planning. Among the areas accountanls consider
in adv Ls i ng their' cLi cnt s on hOH to build t.hei r- es tates are,
Lrap r-o vement, of estate's liquidity position, possible tax savings, and others like exchange control regulations. Most of the accoun t ant s who were interviewed stated that they assist -in estate transfer, especially by preparing the final income tax returns for the deceased person and in preparation of trust accounts.
viii
There are limitations to the accountant's role in estate planning which include: unfamiliarity of most accountants with,estate planning matters; lack
of demand for estate planning services by the clients;
and size of the firm. The recent abolition of Estate Duty Act is also likely to affect adversely the accountant's role in estate planning, especially in the area of possible tax savings.
The major conclusion is that most accountants are involved in estate transfer more than in estate creation. Further, it can generally be asserted, accountants do not appear to think there is a need for their involvement in estate planning particularly due to the abolition of Estate
.Duty Act, and a lack of adequate demand for this service
from the community they serve.
Estate planning appears to be in its infant stage in Kenya, and allhough it is likely to be affected adversely by the abolition of Estate Duty Act, accountants should seek greater familiarity with the subject and aim at educating the community they serve on the need to have estate plans. While familiarity could be achieved through
study and consultation or even by an accountant establishing
an estate plan (or himself, the accountant's community could be educated by publishing literature on estate
planning. Further, a greater concern and research efforts
should be directed towards estate planning as a subject, than there is at present even if it is for sake of accounting profession development .
.., | en |
