June 29, 2017

Catch up: Four more questions about Estate Planning

If all the questions we get from listeners on our Legacy Series show is any factor, everyone wants to leave a footprint on the sands of time.

Today, we examine four of the top questions we’ve had on the show and our perspectives on them:

  • I am from a multi-ethnic background. My father left me his Oil-servicing business in Delta to manage since his health started failing three years ago. My siblings are occupied in different parts of the world and don’t mind this. I am also managing a steel business for my mother who is quite elderly too and since listening to your program, I have been thinking that I need to take a professional approach to planning the succession of the business to ensure it stays in the family; especially if my children or nieces and nephews do not want to be involved in the daily running (like my siblings). Where do I start? – Steve Onoh
  • In this situation, we recommend the father put an Estate Planning arrangement in place as soon as possible. The fact that the business was left for one child to run does not exclude the siblings from benefiting from the business. As such, it is important for the asset owner (the father) to clearly express his intentions in a testamentary document on how the family business should be operated.

    We recommend the mother also take appropriate steps and create an Estate Plan. A Will is the most suitable in this case.

    It is important to note that Steve Onoh’s running of the family business does not bestow upon him the right of ownership/transfer to the next generation until this has been clearly outlined in an Estate Plan created by his parents.

  • I love the episode on Children Education Trust. My husband and I have been discussing this. What are the cost implications? – Mimi
  • As no two situations are alike, the cost of setting up an Education Trust is dependent on the kind of arrangement under consideration.

  • How can we ensure that my maternal grandfather’s Zakat wishes are adhered to since he had no Estate Plan in place? – Ojuri
  • To adhere to charitable wishes, like in the case above, the beneficiaries need to set aside 2.5% of the income of the estate towards Zakat. This is the law of Islam.

  • I was touched by the episode on Estate Planning and Islam. Where do I begin planning for my wife and three children? As an expert, does this apply to every religion you know? – Yakubu
  • All religions have allowances for the creation of an Estate Plan. To be able to make appropriate recommendations, the goals of each individual have to be determined.

    FBN Trustees exists to help make the wealth transfer process easier.

    A member of the reputed FBN Holdings Group, we are a team of experts who have in-depth industry knowledge, local awareness and relevant experience, having helped develop wealth transfer plans for families and businesses over several decades.

    You can count on us to provide you with bespoke solutions to address your wealth transfer objectives, especially as we realise that no two individuals have exactly the same needs.

    Start building your legacy today. Contact FBN Trustees to schedule a consultation.