Estate planning is the process of arranging for the management of your assets in the event of death. All your personal possessions including your car, house and other landed property, bank accounts, investments, and household belongings, constitute what is known as your estate. However, without a valid estate plan in Nigeria, your loved ones and dependents will be at the mercy of state laws in order to gain access to your assets, should you suddenly become incapacitated. They may also have to endure arduous court battles with other relatives who want to lay claim to your assets.
An estate plan protects your wishes for the distribution and disposal of your wealth while minimising court fees, taxes and emotional stress for your loved ones. Here’s what to know about how to get started with estate planning in Nigeria.
How Estate Planning in Nigeria Works
Before you get started with estate planning, you need to first outline the goals, concerns and instructions which you want to be covered in your estate plan. Usually a financial professional can help you understand your financial situation by assessing your outstanding debt, the value of your assets as well as important tax concerns. With the help of legal counsel, your directives should then be established in form of a will, guardianship or trust. Here is a step-by-step process of how to get started with estate planning in Nigeria:
- Take inventory of your assets and debt
- Consider the needs of your dependents and intended beneficiaries
- Lay out your directives in a will
- Consider establishing a trust
- Appoint an executor
Aspects involved in Estate Planning in Nigeria
The major document used in laying out an estate plan is a will. Your will lays out instructions on how your financial and tangible assets should be allocated. As part of estate planning in Nigeria, a trust can be used to transfer wealth to a beneficiary through the administration of a trustee or trust company. Guardianship is also another aspect of estate planning in Nigeria, which requires you to appoint a guardian who will continue to care and provide for any child or dependent you have who is a minor.
Importance of Estate Planning
Estate planning can give you peace of mind over what will happen to your hard-earned wealth when you die while giving your assurance that the people you care about will be catered for. Here are a few reasons why estate planning in Nigeria is highly important:
- Financially protects your loved ones and minors in the case of your sudden passing
- Ensures your wishes for the handling of your assets are respected and followed
- Removes the emotional and mental burden of distributing your assets from your family
- Allows you to continue to contribute to the causes you care about even after death
- Eliminates possible conflict among family members over the handling of your assets
Get Started With Estate Planning in Nigeria with FBNQuest
FBNQuest is committed to providing clients most experienced financial and legal professionals in estate management and administration in order to ensure a smooth transfer of their wealth to your loved ones. Our estate planning and advisory services include robust will-writing solutions, executorship services, and trust administration.
Let us help you preserve your generational wealth. Download our estate planning guide today – fbnquest.com/trustees/resources/estate-planning-guide/ or request a call from a member of our time by filling out our contact form.