Section 3F of Trustees Perpetual Succession Act CAP 164: Validity of a trust

(1) A trust shall be valid and enforceable in accordance with the terms of the trust.
(2) A trust is invalid if -
(a) it is created for a purpose or purports to do anything which is illegal in Kenya;
(b) it has no identifiable ascertainable beneficiary;
(c) it is established by duress, fraud, misrepresentation or in breach of a fiduciary duty;
(d) the terms are so uncertain as to render performance impossible; or
(e) if the settlor had no legal capacity to create the trust.
(3) Notwithstanding that a trust is created voluntarily, and is effected without consideration, a trust shall not become void by virtue of -
(a) the settlor’s bankruptcy;
(b) liquidation of the settlor’s property; or
(c) proceedings or a suit against the settlor by his or her creditors.
(4) The Court may declare a trust to be void where it is proven that the trust was made for fraudulent purposes, including to evade creditors of the settlor.
(5) Subject to subsection (2)(d), where some purposes of the trust are invalid but other purposes are not -
(a) in case the purposes cannot be separated, the trust shall be invalid;
(b) in case the terms can be separated, the court may declare that the trust is valid with regard to the purpose which is lawful.
(6) Where a trust is partially invalid, the Court may declare what property is to be held subject to the trust and what property is not.
(7) The provisions of subsection 2(b) do not apply to a trust established under section 3C.

More Sections

Section 3G - Beneficiaries of a trust

(1) A beneficiary of a trust shall be identifiable or ascertainable in reference to a class or relationship with another person, whether living or dead. (2) Subject to subsection (1), the terms of a...

Section 3H - Class of beneficiaries

Where a trust is created in favour of a class of persons - (a) the class shall be deemed to close when it is no longer possible for any person to become a member of that class; and (b) where the...

Section 3I - Disclaimer of beneficial interest

(1) Subject to the terms of the trust, a beneficiary may disclaim his or her interest or any part of it, where or not he has received any benefit from the trust. (2) A disclaimer shall be in writing...

Section 3J - Enforcers

(1) An enforcer may be appointed in accordance with the terms of the trust. (2) The functions of an enforcer shall be to - (a) enforce the terms of the trust; (b) inquire into the status of...

Section 4 - Property to vest in body corporate

The certificate of incorporation shall vest in the body corporate all movable and immovable property and any interest therein belonging to or held by any person or persons for the benefit of the trust...

Section 5 - Application for incorporation

(1) An application to the Registrar for a certificate under this Act shall be in writing, signed by the person or persons making it, and shall contain the several particulars specified in the First...

Section 6 - Appointment of trustees

(1) Before a certificate of incorporation is granted the trustees shall have been effectually appointed or constituted to the satisfaction of the Registrar, and where a certificate of incorporation...

Section 7 - Certificate to be evidence of compliance with requirements

A certificate of incorporation so granted shall be conclusive evidence that all the preliminary requirements of this Act in respect of the incorporation have been complied with, and the date of...

Section 8 - Variation of conditions in certificates

(1) The trustees in respect of whom a certificate of incorporation has been granted under this Act may apply to the Registrar to vary any of the conditions or directions contained in the certificate,...

Section 9 - Recording of documents, and provision of copies

(1) The Registrar shall keep and record in a register kept for that purpose each application, order and other document lodged or given under the provisions of this Act, and a duplicate of each...

Section 10 - Enforcement of conditions of certificate

All conditions and directions inserted in any certificate of incorporation shall be binding upon and performed or observed by the trustees as terms of the trust concerned.

Section 11 - Fees

Every application for a certificate of incorporation under this Act and every such certificate shall be charged with the prescribed fee set out in the Second Schedule.

Section 12 - Gifts to vest in corporate body

After the incorporation of any trustees pursuant to this Act, every donation, gift and disposition of movable or immovable property, or any interest therein, theretofore lawfully made (but not having...

Section 13 - Common seal

(1) The common seal of the corporate body shall have such device as may be approved by the Registrar, and until a common seal is provided the seal of some person may be authorized by the Registrar for...

Section 14 - Petition to decide question whether person is a member of a corporate body

(1) When any question arises as to whether a person is a member of a body incorporated under this Act, any person interested in that question may apply by petition to the High Court for its opinion...

Section 15 - Searches

Any person desiring information may apply in person to the Registrar and, on completion of the prescribed form and on payment of the prescribed fee, may inspect the register relating to the document...

Section 16 - Change of name and dissolution

(1) The Registrar may, if he is satisfied that the circumstances of the case so justify, order that the name of a corporate body be changed. (2) The Registrar may, if he is satisfied that a corporate...

Section 17 - Regulations

The Registrar may make regulations for the purpose of regulating any matter or thing to be done under this Act, including the specifying of fees and the prescribing of forms, and generally for the...

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