A tale of the triplets

A tale of the triplets

Jude, Jeff and Jaime were born on the same day to the same mother, looked almost the same, grew in the same household yet they were vastly different as black is to white.

Jude was an incredible optimist. He was that man who believed that there was something good in every situation. He expected awesome things to happen for him and they did. He often joked that it was for him that the word ‘luck’ was invented. The man who was willing to live life to the fullest, take chances and learn from any mistakes whatsoever.

Jaime was the indifferent one. He took life as it came not expecting much, and therefore not receiving much too. Life was just one blah place and his indifference showed in the clothes he wore, the decisions he made, the friends he kept and the life he lived.

Jeff was a pessimist to the teeth. He had the knack for conjuring the worst possible outcome to every situation on earth and most times, when life responds to his negativity by bringing bad circumstances his way; he takes that to mean he was right.

Many situations had these brothers taking decisions differently thereby creating their current lives. Let’s take a look at some.

The dream car

The brothers . Jude imagined and spoke excitedly about buying himself a G-Wagon because he loved that car. Jeff scoffed and told him to be realistic and cut his coat according to his size before declaring that even though he desired a car,

Outcome: Somehow, new deals came around and Jude won a contract that afforded him just enough to buy his G-Wagon. Jeff? He rides to work with Jude each day since they both work on the Island while Jaime manages their father’s rickety Corolla.

The Investment

Jeff had a bad story to tell each time anyone tried to tell him about investment. So when the Money Market Fund idea was pitched to him and his brothers by their cousin, Jeff jumped up screaming scam!!! Jude the optimist decides to give it a try because he figured that if a lot of wealthy people were doing it, there had to be something about it, and he invested. Jaime was not even listening when the topic was being discussed despite being present.

Outcome: Jude kept on investing until he started ticking off his goals one by one. He bought a property in Lekki and started building his dream house. He also had enough to buy stocks and stash away for emergency. Jeff is still waiting for something bad to happen so he can say “I told you so” to Jude. And Jaime is indifferent about any additional income, managing the N120, 000 he has earned as salary for the past 4 years.

Career growth

When Jude decided that he needed a career change and started applying for courses, Jeff advised him to stay where he was before things get worse in his new field. Jeff reminded him that the grass wasn’t greener on the other side but to Jude, the grass was actually sparkling green for him and he was willing to take the chance to prove it or at least learn from the experience.

Outcome: Two courses aced and several attempts at submitting resumes plus interviews later, Jude is off to Dubai to manage the Customer Service Department of AlMaed Khaleem Oil and Gas Company stationed there. Jeff still works with the bank – a job which he hates and complains about always but is not willing to take steps to move. Jaime remains stagnated doing the same old job and not bothered about growth.

These three brothers replicate three personalities that are available to us all for the choosing. Which of the brothers are you currently?

 

Bottom Line:

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I Stopped Being A Danfo Slay Queen

I Stopped Being A Danfo Slay Queen

I had a talent for blowing cash. My bestie Becky was tired of my money habit. No matter how much I tried to save, I always end up dipping into it and using the cash for seeming emergencies.

The thing is I love shopping a lot. I love clothes, shoes, trendy handbags and all things nice. I love to slay and with the salary, I got working at a four-star hotel for five years, I could definitely afford the lifestyle I wanted. The only problem was that at 28, I was still jumping Danfo up and down Lagos and getting into tongue wars with conductors over Fifty Naira change every time.

It used to be me and Becky making these crazy trips around the city on most days, but the baby girl got herself a cool ride and left me at it. Now, I could always hitch a ride whenever we were on the same shift or going in the same direction but on days when it was not so and I had to use public transport, it felt so lonely and annoying having to use public transport.

Perhaps, the negative vibes I was getting was a sure sign that I was grown enough to own a ride and honestly, with my salary, I could afford it if I became more disciplined with money and saved towards it. This thought bothered on my mind for a long time.

While scouring the internet one evening, I came across a pop-up ad from ARM Life on saving for the future and when I checked it out it was like the answer to a prayer I didn’t even realize I was offering.

I went to ARM Life official site and gathered information about the kinds of policies they offer and I chose ARM Life Saving Plus Plan as it suited me perfectly.

I can say confidently choosing a saving plan on ARM Life was the smartest decision about money that I have ever made. I got an SUV in three years and even Becky was surprised.

She grilled me non-stop about how I bought the car. At first, she imagined that it was a gift from my parents or fiancée. She knew my habit with money so she found it hard to believe that I was able to afford it.

I let her in on the secret and now we both are using the platform to save for bigger plans in our individual futures!

 

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Just like a scene from the movies…

Just like a scene from the movies…

Esther stood for close to an hour drinking in the sight of her husband Felix as he lay cold and lifeless in state. She tried to remember how well she knew him before his sudden demise- but the recent events of the past few hours brought her back to reality with the reminder that perhaps she didn’t know this man as well as she had thought.

Esther had watched strangers stroll into her home the moment her husband’s death hit the news claiming to be family.

Felix Brown was the CEO of Brown Entertainment – a foremost multimillion-naira entertainment company in Nigeria. His wife Esther Brown was a Director and also the Head of Communications in his company. Together, the couple has three daughters two of whom were studying at Oxford University with the last girl still in Secondary school.

The couple had braced all storms and weathered every obstacle to build the business that catered to hundreds of staff. At home, Felix was the doting father and loving husband. Esther indeed had it all.

Until the unfortunate circumstance that claimed her husband’s life one cold Monday morning. Esther had woken before her husband which was unusual for a man who woke every day at 5AM and spent 35minutes reading.

She went about her day until she realized at 7AM that Felix was still in bed. Waking him proved abortive until the family doctor arrived to confirm the worst, Felix had passed away in his sleep.

The media didn’t allow the Brown family time to mourn before throwing the news across all platforms. Social media was agog with the news and his two daughters heard of their father’s passing via a text message from their friend condoling with them.

The hours after that would reveal secrets Esther would never have thought of. First, it was Ekaette the housekeeper from 10 years ago appearing with a boy she claimed belonged to Felix. Then Felix’s mother who never liked Esther shows up with a certain Aisha whom she claimed Felix had two children by before his marriage.

Trying to understand the drama going on in her home, Esther observes quietly as uncles, aunts and distant relatives come with one claim or the other. She doesn’t understand if the entire charade was in fact the truth. Had she been living with a stranger all these years?

She kept staring at Felix until a hand on her shoulder brought her back to reality. It was her only brother James. He takes her to the room and proceeds to ask her a simple question. “Did Felix leave a Will?” A question to which Esther answers in the affirmative. “Good” James replies “You have nothing to worry about then”.

***

.

Creating a Will is a way to secure your assets for the ones you love in case of uncertainty.

Set a Will up in minutes at www.armtrustees.com/easywill

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For 3 consecutive years, our Mutual Funds have outperformed their benchmark

For 3 consecutive years, our Mutual Funds have outperformed their benchmark

In an interview with BusinessDay’s Dolapo Ashiru, Kai Orga, Acting Managing Director at ARM Investment Managers, speaks on various issues regarding the fund management sector of the economy and how the ARM Mutual Funds have performed over time.

Interviewer: How are you leveraging on technology via digital & mobile platforms to further increase your reach and serve clients better?

Kai Orga: In cognizance of the fact that digital is the future, ARM Investment Managers started on a journey a few years ago to overhaul our platforms, systems, and processes to make them more customer friendly; improve our service delivery and reduce transaction turnaround times. We are implementing an omni-channel approach whereby solutions delivered are consistent across the various platforms, facilitated by a harmonized customer service.

Today, we have multiple channels to serve our clients – a web client portal, mobile application, Quickteller, GT USSD, E-Bills Pay, GT Collections, Shortcode to name a few, which are all being utilised by clients to execute transactions with us. We are able to onboard new clients easily and in real-time; and an integrated mobile application is also underway, as we make a conscious effort to move away from having multiple applications operating in silos. Adding to our portfolio of channels, we launched PayDay Investor last year, an investment application that enables our customers to invest seamlessly in the ARM Money Market Fund while providing convenience, and excellent user experience to our customers.

We are however mindful of the inherent risks associated with financial technology and the need to ensure that customer data is kept safe and managed appropriately, therefore, we have strengthened our risk management processes by including IT security as a focus area within our risk management framework.

Interviewer: What are your views on the emergence of Fintech companies and do you feel threatened by their emergence?

Kai Orga: The emergence of Fintech companies has paved way for technical innovation in the finance and investment industry and has given rise to simpler and more customer-focused processes and solutions utilizing faster and better technology as well as harnessing customer data. As a firm that is keen to embrace change, we do not view their emergence as a threat, but rather as an opportunity to learn, adapt and collaborate towards offering better services to our clients.

What is driving patronage for Fund managers especially from the retail client segment?

Kai Orga: The main drivers of patronage are returns and diversification. Retail clients have numerous options for saving and investing their funds; however, the service fund managers offer over and above banks, stockbrokers and other savings and investment platforms is the ability to invest in multiple asset classes and have their investments professionally and actively managed, even with very minimal funds. Through fund management vehicles, investors are exposed to equities, fixed income, money market instruments, real estate and even alternative investments such as infrastructure. Clients are even able to gain access to offshore investment vehicles.

Interviewer: What is the ratio of Retail Vs Institutional Vs HNI clients in the fund management space?

Kai Orga: The assets under management of ARM Investment Managers is currently split almost equally among the 3 investor types – i.e. retail investors, high network individuals and institutional clients. It is difficult to estimate the split for the industry as a whole; however, there is a concerted effort by fund managers to grow their retail products.

Interviewer: What is the average return on portfolio like in the various Asset classes?

Kai Orga: In 2018, bond and Treasury bills yields were 14.16% and 13.92% on average, respectively. As for equities, the Nigerian Stock Exchange (NSE) which comprises all listed securities in Nigeria had a negative return of 17.8% in 2018, after a positive return on 42.3% in 2017. The stock market in Nigeria is especially very volatile, which means there is significant opportunity for returns but the accompanying risk is also high. Stock selection is key when investing in equities as some specific stocks have a better performance history and are better able to withstand shocks in the market.

Interviewer: In advising clients what determines your portfolio structure/Asset mix for the different categories of clients?

Kai Orga: Our financial advisers profile clients majorly based on three categories being: The clients’ investment objective; risk profile (how much risk the client is willing to take in order to achieve returns); investment horizon (how long the funds are available for investment). All of these affect the investment advice given as some investments have a minimum holding period while some investments are very risky and should only be undertaken by individuals that have enough assets to sustain them should the investment turn bad. We also carry out an assessment of the clients’ peculiar circumstances – that is their age, marital status, number of dependents, income and net-worth, which feeds into our investment advice. One other important factor in structuring client portfolios is the performance of the various asset classes (both current and outlook) as we always strive to ensure optimal returns for our clients.

Interviewer: What are the current challenges being faced by fund managers in Nigeria? And how are you mitigating against those challenges?

Kai Orga: The Nigerian financial market is still relatively small with a lot of potential for growth. The main challenges we face as fund managers are around the implementation of ethical standards and effective corporate governance, as these factors ultimately have a major impact on the integrity of our financial market. Another key challenge is the depth of the market. While the industry has come a long way, low financial literacy and awareness has hindered growth of the industry. There is only so much development that can take place in terms of developing new products and asset classes unless we have a population that is ready to accept this. ARM Investment Managers does its bit by working with the regulators to improve financial literacy through series of financial planning presentations to targeted audiences.

Interviewer: How challenging is it to assess risk in the Nigerian Financial markets given our level of development and data availability?

Kai Orga: The Nigerian financial market is still relatively small but with a lot of potential for growth and development. The regulators have done a lot of work in terms of investor protection, and this is helping to reduce the inherent risks in the market. This is the reason Fund Managers’ investment universe is limited to listed companies and securities that are well regulated and monitored. However, while the non-bank financial services industry has come a long way, we still have challenges and inefficiencies surrounding transparency and disclosures as well as unfriendly practices. Furthermore, there is still a certain element of market risk that cannot be eradicated even in developed countries.

Interviewer: Which of your various mutual funds has received the most subscription from your clients and what reasons are given for this selection?

Kai Orga: Most Nigerian investors are risk-averse, so products in the fixed income space which are capital guaranteed and provide a steady stream of income are usually preferred. Consequently, the ARM Money Market Fund is by far the highest subscribed fund in terms of assets under management and customer base.

Interviewer: Can you give us an idea of your various mutual funds and their performance?

Kai Orga: ARM Investment Managers currently manages 4 different mutual funds: Aggressive Growth Fund, Discovery Fund, Ethical Fund, and Money Market Fund. Each fund has its own risk and returns objectives which ultimately determines the required asset class allocation to meet those objectives. The ARM Money Market Fund is a risk-free fund which guarantees investors’ capital while the Aggressive Growth Fund is our riskiest fund on account of its high allocation to stocks (80-100%).

The ARM Mutual Funds usually outperforms their respective benchmarks as well as other Funds in the industry with similar asset allocation profiles. For instance, ARM Money Market Fund is currently yielding 13.74% as of end of March 2019.

ARM Mutual Funds

  • The ARM Discovery Fund is an investment that provides capital growth primarily through investments in equity, real estate and fixed income securities in the Nigerian market. The Fund Manager maintains a minimum equity position of 40% and a maximum of 65%. The Fund is suitable for investors who have a moderate risk tolerance level. The minimum investment is N10,000 and additional investment is N5,000.
  • The ARM Aggressive Growth Fund invests in stocks (80%-100% maximum) and money market instruments (0%-20% minimum). It is suitable for high-risk takers who expect capital appreciation over the long term. The minimum investment is N50,000 and additional investment is N10,000.
  • The ARM Ethical Fund invests in shares of Shari’ah compliant companies quoted on the Nigerian Stock Exchange, real estate and other investments compliant with Islamic Finance. Certain sectors that hold stocks such as Tobacco, Breweries, and Entertainment are excluded from the Fund’s portfolio. It is suitable for investors who would like to invest according to their moral beliefs and also wish to achieve long-term capital growth. The minimum investment is N10,000 and additional investment is 5,000.
  • The ARM Money Market Fund (MMF) is an open-ended fund that invests in money market securities such as Bankers’ Acceptances, Certificates of Deposits, Commercial Papers, Short term debt securities issued or guaranteed by any Federal or State Government of Nigeria (such as Treasury Bills). The Fund is structured to preserve capital invested and provide income which is payable quarterly. The minimum investment is N1,000

For 3 consecutive years, our mutual funds have outperformed their benchmark brief description of the different funds and their performance over the last 3 years is as stated below:

Year Performance Measure 2016 2017 2018 3-year Average Fund Performance Benchmark 3-year Average Benchmark Performance
Aggressive Growth Fund Fund Return 4.16% 46.79% -8.57% 14.13% NSE 100% 6.11%
Discovery Fund Fund Return 4.92% 34.66% -5.49% 11.36% NSE:T-bills

60:40%

 10.35%
Ethical Fund Fund Return 2.79% 22.18% 3.53% 9.50% Lotus: Skye shelter: Osun Sukuk

50:20:30%

 9.64%
Money Market Fund Effective Yield 9.92%  17.19% 12.98% 13.46% 91-day T-bill 13.03%

 

Interviewer: What determines the inclusion of an asset class and the weight assigned to it in a Fund?

Kai Orga: Each Fund registered with the Securities and Exchange Commission (SEC) has a trust deed which clearly states its risk and return objectives, as well as the asset classes the Fund can invest in and the Fund’s allocation to the various asset classes (ranges). The actual weights assigned to the asset classes however is determined by the fund manager’s assessment of the market and expectations of future performance.

Interviewer: What kind of Equities are included in your equity fund and the criteria for their inclusion or removal?

Kai Orga: ARM invests primarily in blue-chip securities that have demonstrated the ability to provide steady returns over a period of time and also have high liquidity (that is stocks that are actively traded on the Stock Exchange). We invest in securities that we believe are priced below what we consider to be their true business value, to gain significant returns for investors when the price of the stocks rise to reflect the true value of the underlying company. In the same vein, we tend to sell stocks that we believe to be overpriced.

Interviewer: Where do you see the fund management industry in the next 5 years?

Kai Orga: We are confident that the regulators’ actions and efforts will ultimately serve as an impetus for faster growth in years to come. We see an increased interest in securities trading and in mutual fund products as investors become more financially aware, which should hopefully lead to the market becoming more dynamic with the inclusion of more asset classes and more securities on the Exchange. This, in turn, is expected to lead to increased competitiveness on the part of fund managers as we strive to improve our service delivery, leveraging on all available technology, and to focus on developing innovative products that resonate with our target market.

 

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4 months and it begins again…

4 months and it begins again…

Wasn’t it just like yesterday you brought your children home for the second term school vacation and yet they are back to school in the blink of an eye? Of course you know what going back to school entails… School fees, new socks and singlets, maybe new lunch boxes, new stationery and a few more.

But in 4 months’ time, these expenses will look like child’s play in the face of the new school year responsibilities. In September 2019, your child could be in a new class which means bigger expenses

As is normal with many schools, a new class will require entirely new set of books, often new school uniforms, higher school fees, lesson fees, school bus, after school service and those other seemingly small fees that eventually add up. In short, in September, if you are not prepared, you’ll be up to your neck in expense.

That is why this is your big reminder to start preparing ahead of time. As a parent/guardian, now that you’ve paid the third term school fees for your child/ward, this is the time to draw up a mock list of what you could be spending money on ahead of September school year.

Here’s a guide:

  • You can also go ahead and find out the school fees and additional fees pupils/students in the class your child (ren) will be joining in the new school year pay. Also find out books they will require – have these listed giving room for any unexpected hike.
  • When that list is ready, find out cost of the items and pen them down. Now, go ahead and do the math to see how much you may need to foot the bill when the time comes.
  • You now have a tentative sum to work with. Take the next crucial step and start investing diligently towards it.

By the time four months comes around, you should have enough money plus interest accrued to sort school expenses without breaking a sweat.

Start saving for September at www.arminvestmentcenter.com

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Ahead of Auction | Nigerian Treasury Bill | May 16 2019

 

  • The Central Bank of Nigeria will be holding their 6th NTB auction of the year where it plans to rollover N50 billion worth of Nigerian Treasury bills split between 91 Day – N18 billion, 182 Day – N17 billion and 364 Day – N20 billion.
Tenor Amount sold at the last auction  

(N billions)

  

Previous stop rates

 Amount on offer tomorrow

(N billions)
91 5.8 10.29% 5.8
182 29.2 12.6% 29.2
364 23.3 12.85% 23.3

 

  • Our take. With the recent approval of the N8.9 trillion appropriation bill by the Senate, the stage appears set for a ramp up in borrowings over the rest of the year. In fact given the lower NTB maturity profile over the next few months and lower interest rate environment, the case for NTB net issuance at tomorrows auction appears reasonably priced. However, if recent trend at the NTB auctions are anything to go by, we see FG maintaining its unflinching stand towards rolling over maturing NTBs in a bid to trim its cost of debt service.
  • That said, going into tomorrow’s auction, we rule sizeable NTB issuance and at best see FG rolling over its entire maturity for tomorrow. Also in line with recent pattern, coupled with pent up liquidity in the system, we see build up in demand at the 364 Day leg which bodes well for FG’s bargaining power. Assembling these factors, we see room for lower rates at tomorrow’s auction. Please our expectation below:
PRIMARY MARKET CALENDAR & STOP RATES
(TREASURY BILLS)
DATE 91 DAYS 182 DAYS 364 DAYS
16-May-19 13.35% – 13.71% 17.35 – 18.34% 13.56% – 14.00%
02-Aug-17 13.42% 17.40% 18.53%
19-Jul-17 13.43% 17.40% 18.55%
05-Jul-17 13.50% 17.50% 18.60%
21-Jun-17 13.50% 17.50% 18.65%
14-Jun-17 13.50% 17.30% 18.69%
31-May-17 13.40% 17.14% 18.65%
17-May-17 13.50% 17.15% 18.70%
03-May-17 13.60% 17.26% 18.82%
19-Apr-17 13.60% 17.40% 18.98%
05-Apr-17 13.55% 17.21% 18.74%

Ahead of Auction | Nigerian Treasury Bill | May 16 2019

Ahead of Auction | Nigerian Treasury Bill | May 16 2019

 

  • The Central Bank of Nigeria will be holding their 6th NTB auction of the year where it plans to rollover N50 billion worth of Nigerian Treasury bills split between 91 Day – N18 billion, 182 Day – N17 billion and 364 Day – N20 billion.
Tenor Amount sold at the last auction  

(N billions)

  

Previous stop rates

 Amount on offer tomorrow

(N billions)
91 5.8 10.29% 5.8
182 29.2 12.6% 29.2
364 23.3 12.85% 23.3

 

  • Our take. With the recent approval of the N8.9 trillion appropriation bill by the Senate, the stage appears set for a ramp up in borrowings over the rest of the year. In fact given the lower NTB maturity profile over the next few months and lower interest rate environment, the case for NTB net issuance at tomorrows auction appears reasonably priced. However, if recent trend at the NTB auctions are anything to go by, we see FG maintaining its unflinching stand towards rolling over maturing NTBs in a bid to trim its cost of debt service.

 

  • That said, going into tomorrow’s auction, we rule sizeable NTB issuance and at best see FG rolling over its entire maturity for tomorrow. Also in line with recent pattern, coupled with pent up liquidity in the system, we see build up in demand at the 364 Day leg which bodes well for FG’s bargaining power. Assembling these factors, we see room for lower rates at tomorrow’s auction. Please our expectation below:
PRIMARY MARKET CALENDAR & STOP RATES
(TREASURY BILLS)
DATE 91 DAYS 182 DAYS 364 DAYS
16-May-19 13.35% – 13.71% 17.35 – 18.34% 13.56% – 14.00%
02-Aug-17 13.42% 17.40% 18.53%
19-Jul-17 13.43% 17.40% 18.55%
05-Jul-17 13.50% 17.50% 18.60%
21-Jun-17 13.50% 17.50% 18.65%
14-Jun-17 13.50% 17.30% 18.69%
31-May-17 13.40% 17.14% 18.65%
17-May-17 13.50% 17.15% 18.70%
03-May-17 13.60% 17.26% 18.82%
19-Apr-17 13.60% 17.40% 18.98%
05-Apr-17 13.55% 17.21% 18.74%

 

 

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Ask Shade About Trusts: How Do I Plan For My Unborn Children?

Ask Shade About Trusts: How Do I Plan For My Unborn Children?

Hello Shade,

I read your previous article in response to a lady’s question regarding her intended husband’s will. I found it admirable that her intended husband had gotten a will so early in his life. I trust God for protection and long life, but I have started considering getting a will too. Especially because of the occupational hazard I am exposed to, working on the high seas. Although we have been married for almost 10 years, my wife and I have no biological children, but we have two adopted children who will definitely be catered to in my will. However, I am certain that we are going to have children of our own very soon. Do I have to wait till my children arrive before including them in my will? Is it possible or commonplace to make provision for unborn children and grandchildren?

Sylvester, from Port Harcourt

***
Hello Sylvester,
Thank you for reading my previous post. I am glad that our opinions concerning that matter are aligned. I must also commend your admirable decision to adopt children while waiting for your biological offspring.

Considering having a will is a good step to take, particularly as you are constantly exposed to occupational hazards. You are absolutely right, getting a will does not negate our trust in God’s protection, it only helps us prepare for that which is inevitable. The thought of passing away and its eventual consequences to loved ones who are left behind is enough to necessitate getting a will. As a matter of fact, everyone should consider getting a will as no one knows just how much time they have.

Children are usually the worst hit when one or both or their parents pass on, hence providing for them is indeed a necessity. Although the Child’s Right Act has already highlighted the rights of children irrespective of whether they are unborn or adopted, you can also make provision for your unborn children as a separate class of beneficiaries in your will. It is not unusual to provide for such beneficiaries using
suitable and flexible estate planning tools.

I am glad that you are considering getting a will as soon as possible. I would encourage you to act without delay.

Thanks to everyone who has reached out to me with their concerns. If you would like to have your question featured, please email [email protected]

Yours truly,
Shade

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Ask Shade About Trusts: My Uncle Is Wrongfully Occupying the Land Our Grandfather Left Us

Ask Shade About Trusts: My Uncle Is Wrongfully Occupying the Land Our Grandfather Left Us

Hello Shade,

Please help me. My grandfather left my brother and I property in our home town. Although we were young when his Will was read, my grandmother lived much longer, and she took us to see the property. Now that we are old enough to use the property, we discovered one of my uncles has since occupied it. All attempts by my dad and other uncles to reason with him have been futile. Since there was a Will, there must be something we can do. How can we reclaim the property? My brother and I intend to start a farm there.

Bode, Ibadan

**
Dear Bode,
You are quite fortunate to have had a grandfather who cared for you enough to leave you something substantial. And your desire to invest in agriculture is also very admirable. Consider this situation a little hurdle on your way to achieving your dreams.

According to your story, your grandfather had written a Will leaving you and your brother his property. Whenever an individual writes a Will, one of the most important questions one must ask is, “who would be responsible and trustworthy enough to carry out my wishes when I pass?”. The individuals appointed to carry out these wishes are called the “Executors” to the Will.

Once a person dies and his Will has been read, the Executors must file for a probate grant at the probate court. Probate refers to the legal process of validating a Will. Once the grant is received, this unlocks the assets and distribution can commence. Because the executors have several responsibilities and can be held personally responsible if they are not properly carried out, it is important to carefully consider appointing executors who are trustworthy and capable of carrying out the sometimes-complicated processes.

Surely, your grandfather appointed executors to his Will. Some questions may likely arise:
1. Are the executors still living?
2. Did they carry out and successfully complete the probate process?
If the answers to the above questions are positive, the first step to reclaiming your rightful property would be to urge the executors to effectively discharge their responsibilities to your grandfather by executing a vesting assent, a document in which the transfer of title to you and your brother would be effected and documented. You may then proceed to register the vesting assent at the land’s registry in the State where the property is located as proof of your title to the land. Once you hold title, you may subsequently evict your uncle from the property by a suit at the court of law.

I would however, counsel that prior to effecting an eviction, please try to use all non-formal means possible for reaching an amicable resolution for your uncle to vacate the property. This may ensure that relationships amongst your family members remains warm and cordial.

My best wishes to you and your brother as you start your farm.

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Ask Shade about Trusts: My Parents Left Me Too Much to Handle

Ask Shade about Trusts: My Parents Left Me Too Much to Handle

Hello Shade,
My parents left me a huge inheritance when they passed away last year. I am just 22 and I don’t think I have enough experience and know-how to manage that kind of money yet. I want to take a few years to further my education and pursue my passion. How can I secure my inheritance while I’m away?
Bola, Lagos
**
Hello Bola,
I commiserate with you on the passing away of your parents. Your ability to pick yourself up and address issues from a rational perspective despite your loss is commendable, as is your desire to further your education regardless of your buoyant financial status.

While it is great that you have chosen to pursue a future of your own, it is important that you appreciate your parents’ sacrifice and kind gesture in leaving you an inheritance. This gesture confers a huge responsibility on you, bordering on the preservation, judicious use and growth of the assets that now belong to you.

For instance, if your inheritance includes functional organisations or property that require maintenance, the responsibility now rests squarely on your shoulders. You would have to keep an eye on operations, ensure the business continues to run, salaries are paid as and when due, maintenance policies are put in place among many other necessities. If your inheritance is liquid as well, the wise thing to do is to ensure it keeps growing via profitable investments and proper handling.

However, it will be extremely difficult, if not impossible to do all of these while you are away studying and charting your own path in life. In order to guarantee the preservation and growth of your inheritance without interfering with your plans and activities, you should seriously consider setting up a Trust.

A Trust can be defined as any arrangement whereby assets (such as your inheritance) are transferred by you as a Settlor (creator of the Trust) into a Trust with the intention that the Trust is to be administered by the Trustee for your benefit and the benefit of any other persons or entities that you so choose.

A corporate trustee (such as ARM Trustees) would have the capacity and experience to manage your inherited assets whilst you focus on your education and pursue your passion. A part of the income on those assets or a portion thereof would be transferred to you periodically until you complete your education or until any stated future time. The Trustee would provide you with periodic reports on the management of your assets and may also take instructions on the management of the assets from you, where necessary.

You may choose to make the Trust a Revocable Trust so that when you believe that you are ready to fully manage your inheritance, the Trust may be terminated and the Assets would be transferred back to you.

Should you require further information and guidance about how to set up a Trust or Investment opportunities to consider for the preservation of your assets, please write to me. I will be glad to help.

The post Ask Shade about Trusts: My Parents Left Me Too Much to Handle appeared first on Realising Ambitions.