Affidavit of Transfer of Shares by Way of a Gift in Kenya

Affidavit of Transfer of Shares by Way of a Gift in Kenya

An affidavit of transfer of shares by way of a gift in Kenya is an affidavit sworn by a transferor to transfer shares to a transferee as a gift. This type of transfer is commonly used among close relatives, such as a parent transferring shares to their child, and serves as an efficient way to share assets without a purchase transaction.

Requirements for transfer of shares by way of gift in Kenya

The following documents and details are required:

1. National Identity Cards: Both the transferor and transferee must provide copies of their national identification cards. This is essential for verifying the identities of the parties involved.
2. Postal Addresses: The postal addresses of both parties are required to complete the affidavit. This information ensures proper documentation and communication where necessary.
3. Birth Certificate of the Receiver: A birth certificate is crucial in establishing the relationship between the transferor and the transferee, especially when the transfer is based on familial ties such as parent to child.
4. Number of Shares Being Transferred: The specific number of gifted shares must be clearly stated in the affidavit. This ensures transparency and prevents future misunderstandings.

Steps to Prepare the Affidavit

1. Consult a Legal Professional: Engage a qualified advocate to draft the affidavit.
2. Gather Required Documents: Collect all necessary documents, including identification cards, birth certificates, and proof of ownership of the shares to be transferred.
3. The Advocate will draft the affidavit: The affidavit should include details such as:
   • Full names and identification numbers of the transferor and transferee.
   • The relationship between the parties.
   • The number of shares being transferred.
   • A declaration that the transfer is a gift.
4. Notarization: The affidavit must be signed by a Commissioner for Oaths or a Notary Public, who will authenticate the document.

Benefits of Using an Affidavit for Share Transfers

1. Simplifies the Process: Transferring shares via an affidavit is straightforward, reducing the administrative burden compared to other methods.
2. Cost-Effective: The process incurs minimal legal fees, making it an affordable option for share transfers.
3. Clarity in Estate Planning: For individuals engaging in estate planning, gifting shares during their lifetime ensures that their intentions are honored without the need for lengthy probate processes.
4. Legal Certainty: A sworn affidavit provides a clear legal record of the transfer, safeguarding the rights of both the transferor and transferee.

Why Consider Share Transfer by Gift

Many people choose to transfer shares by way of a gift as part of their broader estate planning strategy. This approach enables individuals to distribute their assets during their lifetime, ensuring that their loved ones benefit without unnecessary delays. Additionally, it minimizes the complications that can arise in the event of the transferor’s demise, providing peace of mind for all parties involved.

Your stockbroker will use the affidavit to lodge an application for transfer of shares for gift intervivos.