Category: Articles

By Mofoluke Keshinro, TEP

Happy International Women’s Month!

This year’s chosen theme strategically underscores the imperative of ensuring the inclusion of women. Inclusion holds the potential to empower women, providing them with a sense of worth and relevance. Embracing this theme could instill the necessary drive in women to achieve more, ensuring that their voices are not overshadowed during critical decision-making moments.

Particularly in estate planning, it is essential to prioritize the inclusion of women. Statistical data reveals that women, on average, outlive men by six years. Thus, it becomes imperative for women to safeguard themselves, their children, and jointly acquired assets, even when cultural norms might place the husband’s name on title documents.

Incorporating women into estate planning not only offers a sense of security but also assures them that provisions are in place for their families in the event of unforeseen circumstances. This proactive step encourages women to secure their personal assets by drafting a Will or establishing a Trust.

The inclusion of women in estate planning extends beyond joint ownership of assets or the application of the right of survivorship. It necessitates comprehensive instructions for asset utilization/distribution and addresses scenarios involving the incapacitation of both parties, considering that not all assets may be jointly owned.

As the world celebrates International Women’s Day under the theme of ‘Inspiring Inclusion’, it is recommended that spouses involve women in estate planning right from the asset acquisition stage. With more women achieving high levels of success and acquiring assets independently or in collaboration with their spouses, taking charge of estate planning becomes crucial for their security and that of their children.

By proactively creating an estate plan or encouraging their spouses to do so, women establish structures that ensure peace of mind irrespective of any unforeseen events. Importantly, a well-structured estate plan benefits everyone involved.

As women increasingly become breadwinners for their households, planning for eventualities such as incapacitation or death becomes paramount. Therefore, there is a pressing need for the inclusion of women in estate planning decisions.

Recognizing that giving women opportunities for inclusion boosts their confidence and relevance, it is essential for couples to jointly decide on the type of planning structure or tool to adopt. This may include a Living Trust, Education Trust for children, Life Insurance, Power of Attorney, or a Deed of Gift for one-off gifts, or opting for a comprehensive Will that mirrors each other’s directives on asset distribution.

To be truly appreciated, women are encouraged to confidently assert themselves, ensuring that their contributions and values are recognized. Women should actively participate in the wealth transfer planning process, solving potential problems and, even in cases where their spouses may not be initially interested, communicate the benefits, and seek guidance from experts.

Let us collectively inspire the inclusion of women in all facets of life.

By Mofoluke Keshinro, TEP

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Embrace the love month with open hearts, but let’s not forget a love that transcends the bounds of life itself. In the symphony of love, where commitments are professed and values deemed precious, there exists a realm often overlooked – the meticulous art of estate planning. This process involves outlining instructions on how your affairs will be managed after you’re gone. While death is an unfortunate certainty in life, proper planning can significantly reduce the negative impact on your loved ones.

Beyond the erosion of the value of assets before the beneficiaries get to enjoy them, there are challenges such as being in the right state of mind to determine the distribution of assets, family uncertainty about the deceased’s assets, fees for professionals to process documents to access assets (probate processing), and time expended on the process.

Recently, a friend’s husband passed away during the pandemic, highlighting the challenges that can arise without a comprehensive estate plan. Despite having a life insurance policy, investments with the spouse listed as beneficiary, and clear instructions at work for death-in-service benefits, the absence of an estate plan left the widow uncertain and burdened. She couldn’t confirm if he left a will or any testamentary directive and was oblivious to the steps her husband had taken or not taken. Inquiring from his colleagues and friends, she learned about these details. She had to quickly navigate the process of obtaining a Letter of Administration to handle her late husband’s assets, adding stress to an already difficult situation. Urgency was paramount as the children had to go back to school, and fees had to be paid; life had to continue despite her bereavement.

It’s essential to understand that common practices like investing, having life insurance, or providing instructions for workplace benefits don’t replace the need for a well-thought-out estate plan. While these measures secure financial aspects, they often leave crucial details unaddressed.

Consider the case where the husband intended to create an estate plan but was discouraged by his wife, who believed that death was a distant event. This mindset can lead to essential planning being postponed, leaving loved ones in a challenging position when unforeseen events occur.

This article serves as a reminder and a call to action. Even if you have taken steps to secure your family’s financial future, creating a comprehensive estate plan is the missing piece that ensures your wishes are articulated. Your plan should cover various aspects, including your children’s education, how assets should be utilized, and the legacy you want to leave behind.

This Love Month, we encourage you not to delay engaging with estate planning experts. Show your love for your family by taking the necessary steps to create a plan that aligns with your family’s dynamics. At ARM TRUSTEES LIMITED, our experts are available to guide you through the process, providing professional assistance to give you peace of mind and leave your loved ones with smiles despite your absence.

Interested in setting up an Estate Plan today? Contact us or send  us an email to [email protected]

By Mofoluke Keshinro TEP

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As we step into the new year, we extend warm wishes for a joyous and prosperous time ahead! This marks a valuable opportunity to not only conceptualize new plans but also to outline the practical steps needed for their execution.

Now, let’s consider a crucial question: What changes do you intend to make this year?

This question carries significance because many of us create plans and resolutions at the start of the year, only to abandon them a few months later. It’s common to revisit these goals towards the year’s end, only to find them unrealized. To ensure success, it’s essential to approach goal-setting with intentionality, particularly when it comes to estate planning.

In the context of estate planning resolutions, we strongly advise engaging with an Estate Planning expert promptly. This proactive step ensures that you receive guidance on what needs to be done and how to go about it.

Make your estate planning resolutions a top priority and commit to implementing the recommendations provided by the Estate Planning expert. Here are some key areas to focus on:

1. Facilitate Access to Your Assets: Plan to make it easy for your loved ones to access your assets.

2. Prepare for Medical Emergencies: Consider creating a medical power of attorney or obtaining health insurance to prepare for unforeseen medical situations.

3.  Invest in Your Children’s Education: Strategize and plan for your children’s education.

4. Prioritize Retirement Planning: Start planning for retirement early by funding your retirement savings account adequately. This ensures financial sustainability post-retirement.

5. Craft a Succession Plan for Your Companies: Don’t assume that your children will automatically take over your business. Seek professional guidance in crafting a succession plan.

6. Update Your Estate Plan with Life Changes: If you’ve recently married, divorced, or experienced any life changes, update your estate plan accordingly.

7. Contribute to Charities: Plan for the charities you are passionate about to sustain your ideologies, whether you are actively involved or not.

8. Ensure Adequate Funding for Your Trust: Regularly review and fund your Trust to meet the beneficiaries’ needs, considering inflation and economic conditions.

9. Seek Investment Advice: Consult with your financial planner for investment advice and portfolio diversification.

10. Avoid Procrastination: Overcome procrastination by recognizing its negative impact. Plan now to ensure your family is well-prepared for whatever the future holds.

For personalized assistance in crafting an estate plan tailored to your evolving needs, reach out to ARM Trustees Limited. Whether you have questions or concerns, we welcome your emails or calls and look forward to assisting you.

Interested in setting up an Estate Plan today? Contact us or send  us an email to [email protected]

Mofoluke Keshinro, TEP

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It’s the last month of the year and a lot of us are already taking stock of things we had planned to do for the year while some of us are already acting on items on our list for the year that we haven’t actioned before now.

Note that there is still time before the end of the year to take major steps especially as it relates to your estate planning goals.

Outlined below are some key considerations to guide on achieving your estate planning goals before the year ends.

Do You Have an Estate Plan?

Yes, you have procrastinated on speaking with an estate planning expert to craft a suitable estate plan for you and it is December already but you have not done anything regarding this. You might want ask yourself the reason for not achieving this goal: is it fear of the inevitable? Is it that you’re unsure of how to distribute your assets? Is it uncertainty on the choice of your Executor or the choice of a suitable guardian for your minors?

If any of the above is a concern to you, do not delay any further, reach to ARM Trustees Limited, we are ready to assist you in achieving this objective in a timely manner to ensure you tick this off your list before the year ends.

Have You Updated Your Plan?

For some of us, we have existing estate plans however our status has changed and there’s a need to update the plan however this is yet to be done.

For those that are about to retire, there’s a need to review the existing estate plan because the retirement plan in the estate plan might no longer be adequate due to economic situation, some portfolios in the estate might not be proportionately spread between short, medium and long terms goals/needs, possibly the investments are long tenured, and they will not meet the needs of a young family that has short terms requests for welfare/lifestyle needs. So, there’s a need to sit with your financial planner and estate planner to adjust the plan as may be necessary. This can be done before the year ends.

Do You Have Life Insurance?

Life Insurance is a tool of estate planning, it helps individuals who do not want their families financially crushed while going through a bereavement undertake a life insurance policy. With a life Insurance, the claim payable upon the death of the insured goes to the named beneficiary in the policy document. Subject to the value of the cover on the life of the insured, the claim sum can be sufficient to handle the financial well-being of your loved ones even in the absence of the breadwinner. That’s why it is recommended that the sum assured should be significant to be able to give complete financial protection such that the family can continue their lives without suffering major change in income upon the passing of the breadwinner, they have the ability to settle debts (if any), go to School, maintain their lifestyle while having adequate financial leverage. You can undertake a life Insurance before the year ends.

If you have an existing life insurance, we recommend you review the sum assured due to the current economic situation in the country, to ensure the claims to be paid by the insurance company will meet the financial obligations of your family if eventuality happens now.

Have You Reviewed Your Named Executors/Trustees/Beneficiaries?

If you named natural persons as your Executor and/or Trustee in your Will, are the executors still alive? Did you give gifts to persons who might have passed on? Is your named guardian in the Will still alive? Or has the lifestyle of the guardian changed that you wish to change to a more suitable person? Do you have anyone with special needs that would need special care and extra financial planning in the family that wasn’t there at the beginning of the year?

Would you wish to set up a separate estate plan for your young children? Possibly, a Living Trust to cater to their educational, welfare and medical needs.

The above validates the need for a review of your estate plan before the year ends.

Inform Your Family About Your Estate Plan

It is recommended that your family know who to approach when eventuality happens hence the need to inform them of structures you’ve put in place to ensure they do not suffer when you are no longer in the picture. Informing them that you’ve created an Estate Plan and the name of your Estate Planning Advisor will guide them in times of emergencies.

We recommend you inform your family on the important values you wish they would adopt and perpetuate in your honour.

You might want to draw up a power of attorney that enables the person you donate the powers to, to take decisions on your behalf when you are unable to. The decisions can be financial, general and/or medical.

By Mofoluke Keshinro TEP

As the year draws to a close, it’s an opportune time to reflect on the progress of your financial goals and chart a path for the future. At ARM Trustees, we understand that wealth management is not just about the present but also about securing your legacy for the future. That’s why we’re here to shed light on the vital synergy between your Financial and Estate plans. In this article, we will explore a critical aspect of your financial well-being – the fusion of your financial plan with your estate plan and how ARM Trustees can guide you toward financial peace of mind.

Financial Planning vs. Estate Planning: What’s the Difference?

Let’s start by clarifying these terms:

Financial Planning: This is about shaping your financial present. According to the Cambridge Dictionary, Financial planning is the act of making decisions about how you should manage your financial arrangements. It involves setting budgets, saving, and investing to reach your goals, whether buying a dream home or funding your child’s education. With financial planning, an individual would assess their current financial goals and review the books and investments to meet their set objectives at the time.

Usually, a financial planner is your guide to achieving your short and long-term financial goals. They focus on optimizing your financial present by creating budgets, savings strategies, and investment plans. However, they might not delve into the intricate legal aspects of your financial affairs, as that’s where an estate planning expert comes into play.

Estate Planning: On the other hand, Estate planning is about securing your family’s future by thoughtfully arranging asset distribution, ensuring your loved ones are cared for, and preserving your wealth. Estate Planning is the transfer of assets in anticipation of incapacitation or death. This process aims to preserve the maximum wealth possible for the desired or intended beneficiaries. So, it involves making decisions about health care during incapacitation and who gets what from your assets.

An estate planning expert, typically a lawyer, plays a pivotal role here. They assess your current situation and contemplate worst-case scenarios to draft comprehensive estate planning documents. These documents aren’t just about asset distribution; they’re about preventing disputes, and discontent among beneficiaries, and safeguarding your assets. The objective is to ensure a seamless execution of your wishes as outlined in your estate plan.

Why Both Are Vital:

While distinct, both financial and estate planning are crucial. Why? Because they contribute to your peace of mind. A sound financial plan reassures you that your goals are on track, while a robust estate plan ensures that, in case of unforeseen events, only those you desire have access to your assets.

Remember, these two areas are complementary. A well-structured financial plan, harmonized with a comprehensive estate plan, is your ticket to financial security and peace of mind. In short, your financial planner focuses on the here and now, while your estate planning expert addresses the enduring legacy you wish to create. Both are equally significant for your overall financial health and peace.

Why Should You Combine Your Financial and Estate Plans?

Simplicity and Clarity: By merging your financial and estate plans, you’re simplifying things for your family. They will not need to navigate multiple documents or juggle advice from various advisors during challenging times.

Asset Control: With a combined plan, you regain control over who makes decisions on your behalf if you can’t and who inherits your assets. This way, you avoid the state determining your asset distribution.

Your estate planning practitioner and your financial planning advisor should work together to prepare a comprehensive and well-integrated document for you. The final document must contain details regarding medical emergencies and how the funding will be done, lifestyle maintenance in retirement, education and welfare of children, funding of charitable objectives, the appointment of guardians for children who are minors, and how to settle Probate fees or Estate Duty.

Take Action Today for a Secure Tomorrow

At ARM Trustees, we strongly advise merging your financial and estate plans. This ensures a holistic approach to your financial well-being and legacy preservation. Our expert team of financial planners and estate planning professionals can help you create a comprehensive document tailored to your unique needs.

These plans require periodic checks to stay in sync with your evolving goals. We can set up a schedule for regular reviews, whether quarterly or semi-annually, based on your preferences and the nature of your assets.

Contact us at ARM Trustees, and let’s combine your financial and estate plans for a brighter financial future. Take control of your legacy and achieve peace of mind.

Interested in setting up an Estate Plan today? Contact us or send  us an email to [email protected]

By Mofoluke Keshinro TEP

When individuals amass significant wealth throughout their lives, they often want to ensure that the hard work and dedication they invested in building their wealth will benefit their chosen beneficiaries. However, it’s not uncommon for some wealthy individuals to delay or neglect the crucial process of transferring their wealth to their loved ones. This oversight can lead to family disputes, misunderstandings, and even the unfortunate loss of a family legacy. To prevent such issues, it is imperative for affluent individuals to establish a seamless structure for wealth transfer.

A patriarch or matriarch with substantial wealth carries the responsibility of understanding the dynamics within their family. This understanding is crucial for safeguarding their wealth and fostering family harmony. Creating an estate plan sends a powerful message to the family: it demonstrates care and concern for their well-being. An estate plan not only ensures the equitable distribution of assets but also leaves behind a legacy of fairness and love.

The primary objective when creating an estate plan should be to promote unity and harmony within the family to achieve common goals. Every action taken in the estate planning process should aim to avoid disagreements, conflicts, or dissatisfaction among family members. Here are some effective strategies to minimize inheritance conflicts:

Set Up a Robust Estate Plan

A robust estate plan is the cornerstone of a seamless wealth transfer. This plan can include tools like a Will or a Living Trust. A Will becomes effective after your passing, while a Living Trust operates during your lifetime and allows for adjustments to meet your evolving objectives. It’s essential to update your estate plan whenever significant changes occur in your life, such as the sale of assets, to ensure that beneficiaries are not inadvertently disinherited.

Transfer Assets to Your Trust

Assets not registered in the name of the Trust do not fall under its jurisdiction. Therefore, it’s crucial to re-title and transfer assets into the Trust’s name. Adequate funding of your Trust account enables the Trustee to carry out your directives as outlined in the Trust Deed.

Choose an Institutional Executor and/or Trustee

To ensure fairness, objectivity, professionalism, and accountability, consider appointing an institutional Executor or Trustee to execute the instructions outlined in your Will or Trust Deed. Institutional Executors and Trustees follow your directives precisely, eliminating potential bias or sentiment-based decisions.

Leave a Letter of Wishes

While a Letter of Wishes is non-binding, it serves as a guiding document for the Executor and Trustees. This letter explains the intentions and reasons behind your Will or Trust instructions. Including funeral directives in this document is advisable, as it is typically read before the Will itself (if a Will is part of your estate plan). This clarity can prevent conflicts and miscommunications among family members.

Be Fair in the Distribution of Assets

Avoid favoritism during the distribution of assets. Fairness should be the guiding principle to prevent sibling rivalry and conflicts. Equitable distribution should be the goal, avoiding situations where one beneficiary gains an unfair advantage over others. If certain family members have special needs requiring additional financial support, create a separate arrangement clearly stating the reasons for the extra provision.

Plan for Business Succession

Transferring ownership of a family business demands careful consideration. Some family members may be actively involved in the business, while others may wish to join. Effective grooming and open communication about the choice of a successor are essential to ensure cooperation among family members and a smooth transition. Consider involving non-active family members by inviting them to sit on the company’s board to provide input on business strategies.

Make Provision for One-Off Gifts

Include arrangements for one-off gifts to individuals who have been close to you, such as your personal assistant, driver, or cook. Additionally, consider one-off gifts to religious institutions or charitable organizations that hold significance in your life.

In conclusion, a well-crafted estate plan, guided by an expert, is instrumental in preventing family disputes over inheritance. Your estate plan will ultimately determine whether your wealth survives to benefit the next generation. Minimizing conflicts in inheritance distribution should be a top priority when establishing your estate plan. At ARM Trustees Limited, we are here to assist you in creating an efficient plan that aligns with your objectives and fosters family harmony.

 

By Mofoluke Keshinro TEP

Have you ever wondered if estate planning and succession planning are the same thing? It’s a common misconception, but we’ll try to clear up the confusion and highlight the differences between these two important concepts. Join us as we explore the world of estate planning and succession planning and uncover the benefits they offer.

Estate Planning Unveiled

Imagine estate planning as a blueprint for managing, preserving, and transferring your assets to your chosen beneficiaries when you’re no longer around. The goal is to ensure a smooth transition of your hard-earned wealth to your loved ones. Estate planning involves creating a will, setting up a living trust, considering powers of attorney, and more. It’s about safeguarding your legacy and making sure your wishes are carried out.

Estate planning isn’t just about personal assets – it can include business interests, real estate, and other valuable possessions. By having an estate plan, you can minimize taxes, name guardians for minor children, and even outline funeral directives.

Decoding Succession Planning

This is a strategic process for choosing and preparing future leaders within a business. Unlike estate planning, succession planning focuses on ensuring the continuity of a company. It’s about grooming the next generation of leaders to carry the torch and maintain the legacy of the business founder.

Succession planning involves identifying potential successors, providing training, and mentoring, and creating a seamless transition plan. The aim is to ensure the business thrives even after the original owner steps down. Succession planning ensures the business’s sustainability and growth across generations.

The Benefits Unveiled

Estate planning and succession planning offer a host of benefits:

Estate Planning:

• Helps to create a clear plan for your assets, including business interests
• Enables you to nominate guardians for minor children
• Helps you plan in the event of incapacitation
• Allows you to decide how your assets are distributed
• Gives you control over selecting executors and trustees
• Facilitates the smooth administration of your estate

Succession Planning:

• Guards against business collapse due to owner’s absence
• Identifies and develops future leaders
• Fosters innovation and fresh ideas
• Preserves the founder’s legacy
• Ensures business continuity

Setting Up a Succession Plan

Creating a business succession plan involves these steps:

1. Identify potential successors within the family or company.
2. Develop a training plan to bridge competency gaps.
3. Allow potential successors to take on more responsibilities and have mentors.
4. Provide skill development opportunities.
5. Create a transition plan and communicate it to stakeholders.
6. Update the plan to reflect changes in operations and innovation.

Expert Guidance Is Key

Whether it’s estate planning or succession planning, expert guidance is invaluable. ARM Trustees Limited can assist you in setting up an estate plan that suits your needs, including family, assets, and business interests. For succession planning, we can guide you through the process, ensuring your directives are captured in a single document for seamless generational transfer.

Remember, estate planning is essential for everyone, while succession planning is particularly important for business owners. Secure your legacy and ensure a prosperous future for yourself and generations

Interested in setting us a, Estate Plan today? Contact us or send  us an email to [email protected] 

 

By Mofoluke Keshinro TEP

When beneficiaries are named in a Trust Deed or a Will, there are certain rights they enjoy, these rights are very important and must be protected because they form a critical part of estate planning.

In this blogpost we will discuss the rights of Beneficiaries and how to protect these rights.

Let’s define who a Beneficiary is – Beneficiaries are the individuals or entities who are designated to receive assets or income from a Trust, Estate or a Will.

These rights are outlined below:

1. Right To Access Assets in the Trust/Will – Beneficiaries have a right to the assets designated for them in the Trust or Will which includes distribution of funds/payments.
2. Right To Information – Beneficiaries have a right to be carried all along on all activities regarding the Trust or Will administration.
3. Right To Sue – Beneficiaries have a right to sure the Trustee or Executor/Trustee where they have failed to meet the expectations required of their role or they have been fraudulent. Or where the Trustee or Executor/Trustee has been found not to be working in their best interest.
4. Right to Account Books – Beneficiaries are entitled to accounting reports on the Trust or Estate’s investments, inflows and outflows. They can engage an auditor to check the books to validate the figures stated as the financial position of the Trust/Estate.
5. Right to Trust Documents/Will – Beneficiaries have a right to the Trust Deed and the Will which sets out their benefits.
6. Right to Change the Trustee and/or Executor/Trustee – Beneficiaries can change the Trustee and/or Executor/Trustee where they’ve acted impartially, they have misappropriated Trust Fund or estate funds/assets or where they’ve incurred losses and mismanaged the Trust Fund/Estate assets.

How to Protect These Rights

To protect Beneficiaries’ rights, several legal and practical measures can be implemented as outlined below:

Creating An Unambiguous Estate Planning Documentation:

When drawing up your estate planning documents either a Trust Deed or a Will, ensure the wording in the document are clear and unambiguous. Drafting a clear and simple estate planning document creates a good foundation for the administration of the Trust/estate and ensures protection of beneficiaries’ rights. The estate planning document should outline the terms of the Trust or Estate, which must include the beneficiaries’ names, the benefits accruable to each beneficiary, when they get the benefits, if you have any restriction like spendthrift clauses these must be clear and implemented in line with your directives. Having a well drafted estate planning document will enable seamless administration and prevent misinterpretations which can lead to misunderstandings and disputes among beneficiaries and Trustees and/or executor/Trustee.

Choice of Trustee and/or Executor/Trustee:

The choice of a Trustee or Executor/Trustee is one that must be carefully done. In the selection, you must ensure you are sure if you will use an individual or institution like a Trust company. The qualities that must possesses must include integrity, being financially savvy, professional, accountable, equitable, impartial and transparent. The reason for this is because a Trustee is responsible for managing the Trust/estate assets and would also be responsible for distributing the assets to the beneficiaries in line with the directives in the estate planning documents. A Trustee and/or Executor/Trustee must be willing to act, must be competent to prevent an abuse of the rights of the beneficiaries.

Periodic Updates:

When the Trustee and/or Executor/Trustee gives regular updates and discloses information regarding the administration of the Trust helps to keep the Beneficiaries in the loop especially where there are changes to be made. Information disclosure and regular updates also validates the rights of the Beneficiaries to information on the Trust administration or Estate affairs. This also builds trust and transparency.

Recordkeeping and Accounting:

One of the key responsibilities of the Trustee and/or Executor/Trustee is to maintain accurate records of the Trust/Estate’s assets, income, expenses, and distributions. Keeping records of inflows and outflows, sales, dividend and other accruals to the Trust Account/Estate and sharing this information periodically as account statements with the beneficiaries can help ensure transparency and accountability which establishes the integrity of the Trustee/Executor/Trustee. This also gives the Beneficiaries the opportunity to monitor the growth of the Trust/Estate’s assets.

Assessing The Performance Of The Trustee and/or Executor/Trustee:

Beneficiaries have a right to monitor and assess the Trustee and/or Executor/Trustee’s actions with respect to the Trust Fund/Estate assets. This is with a view to ensuring these actions are in the best interests of the Trust and/or the Estate. Where there is a reason to doubt the Trustee and/or Executor/Trustee due to misappropriation, mismanagement, loss of assets or income, or unfair treatment which can lead to violation of the fiduciary duties, the beneficiaries can take legal action to hold the Trustee and/or the Executor/Trustee accountable to protect their rights.

Legal Representation:

Where there are disputes regarding administration of Trust/estate assets, Beneficiaries may hire a lawyer to represent their interests to seek redress. Also, where there is misinterpretation of any clause in the estate planning document, Beneficiaries can seek legal advice and interpretation, if necessary. Beneficiaries can also explore resolution of conflicts or disputes through alternative dispute resolution without the hassle of litigation, alternative dispute resolution is faster and more cost efficient.

It is important to acknowledge the rights of beneficiaries, also these rights must be protected by ensuring the directives of the asset owner is followed in distribution of Trust/Estate assets or income while ensuring the designated beneficiaries have access to the assets in the Trust and Estate.

By Mofoluke Keshinro TEP

As we enter the second half of the year, it’s important to reflect on our financial plans and estate plans. The past months have seen significant changes in our economy, necessitating a review of our estate plans to ensure they align with our objectives. In this blog post, we will explore the benefits of periodically reviewing and updating your estate plans, considering factors such as changes in personal circumstances, economic conditions, and the need to make realistic and achievable provisions for your beneficiaries.

The Changing Landscape

The beginning of the year witnessed a flurry of activities, including presidential elections and policy changes by the new administration. From the removal of fuel subsidies to the unification of foreign exchange rates and proposed increases in electricity tariffs, these changes have had a direct impact on the cost of living and our financial plans. Therefore, it becomes crucial to assess the implications of these changes on our estate plans and make necessary adjustments.

Reasons for Review

Several factors necessitate a review of your estate plan. These include changes in your personal circumstances, such as the addition of a new family member, acquisition of new properties, or the unfortunate events of a beneficiary’s death, executor’s death, or changes in marital status. Other considerations may include incapacitation, changes in financial goals, alterations in taxation laws, or inflation rates. In Nigeria, particularly, the current high cost of living makes it imperative for everyone with an estate plan to review it as soon as possible, ensuring that the provisions adequately meet the outlined objectives.

Examples and Recommendations

Let’s consider a scenario where a settlor has created an Education Trust for a named beneficiary with a sum of N200million. However, the settlor has also specified that the beneficiary should attend only Ivy Schools offshore, and the beneficiary is currently in junior secondary school. It becomes evident that this sum will not be sufficient to meet this objective, necessitating a revision of the plan. The settlor should explore ways to include additional assets in the Trust to ensure their wishes for the beneficiaries can be achieved.

In the case of a Living Trust, where the settlor has provided instructions for upkeep and lifestyle expenses to be met from the Trust Fund, it is essential to reassess and potentially increase the provisions stated in the Trust Deed prior to May 2023. This review should align with the current state of the economy, ensuring that the objectives set for the Trust can be realistically achieved with the available resources.

Benefits of Periodic Review

Regularly reviewing your estate plans offers several benefits, including:

1.  Realistic and Achievable Plans: By updating your estate plans, you ensure that they remain relevant and attainable considering changing circumstances.
2.  Inclusion of Additional Beneficiaries: A periodic review allows you to include beneficiaries who may not have been initially considered, ensuring their financial well-being and protection.
3.  Seamless Transition for Beneficiaries: Updating your estate plans minimizes disruptions for your beneficiaries, enabling them to continue their lives without lowering their lifestyles or experiencing unnecessary difficulties.
4. Portfolio Adjustments: Reviewing your estate plans provides an opportunity to reassess the composition of your investment portfolio and make necessary adjustments to align with your goals.
5.  Replacing Executors, Trustees, or Guardians: As circumstances change, it may be necessary to replace individuals or institutions named in your estate plans with those who better fit your future vision for your estate.

Conclusion:

Periodically reviewing and updating your estate plans is essential to ensure that your goals are achieved, and your beneficiaries can access and benefit from your assets seamlessly. By considering changes in personal circumstances, economic conditions, and other relevant factors, you can make realistic and achievable provisions for your loved ones. Let this be a reminder to take action and review your estate plans to secure a future that aligns with your aspirations.

Ready to review your estate plans? Contact our team at ARM Trustees today to discuss your specific needs and ensure your estate plan remains effective and up-to-date.

Website: www.arm.com/trustees Email: [email protected]

By Mofoluke Keshinro TEP

On this special occasion, we extend our heartfelt wishes to all fathers, honoring the invaluable gift you are to your families. Your unwavering dedication and guidance in running a harmonious household are truly commendable. As they say, a father is a girl’s first love and a boy’s first hero. This sentiment holds true in every sense. Furthermore, a father’s role transcends that of a hundred schoolteachers, as you impart teachings and values that enable your children to grow into responsible contributors to society.

Allow me to share a personal experience highlighting one of the countless life lessons I learned from my own father. He had a profound love for reading and possessed a unique ability to analyze various perspectives on any given matter. He never settled for a single viewpoint; instead, he broadened his horizons before arriving at a well-reasoned conclusion. This trait has become an integral part of who I am today.

A father assumes the position of an authority figure and leader within the family. Your influence and impact on values are immeasurable. Undoubtedly, the role of a father is both special and crucial.

Fathers are the guardians of their families. They provide unwavering support and serve as a pillar of strength. Fathers represent protection and security for their loved ones.

Given the weighty responsibilities fathers hold and the roles they embody within the family, it becomes imperative for them to ensure that their legacies endure long after they are gone. It is the duty of every father to create a comprehensive estate plan that enables their family to thrive seamlessly even in times of incapacitation or absence. An estate plan is undoubtedly the best solution.

Life is uncertain, which is why planning for the welfare, education, healthcare, and other lifestyle needs of your family should be your top priority.

Reasons Why Fathers Should Shape the Estate Plan for Their Families:

a) Pillar of Support and Provision: Fathers are seen as the primary providers and supporters of their families.

b) Leadership: As leaders, fathers steer the ship of the family and determine how its affairs should be conducted.

c) Breadwinners: Being the primary earners, fathers bear the responsibility of managing the family’s finances.

d) Preparation for Eventualities: Given their pivotal role, it is crucial for the spouse and adult children to understand what steps to take when unexpected circumstances arise.

e) Preserving Your Vision: Every father harbors desires and aspirations for their family’s future. Documenting these intentions safeguards against external influences dictating how your family should be managed.

Benefits of Fathers Creating an Estate Plan:

Provision: By creating an estate plan, fathers ensure that provisions are made for the smooth functioning of the family even in their absence or incapacitation.

Protection: An estate plan provides a safety net, preventing the grieving family from being directionless after their loss. It outlines how to carry forward the family legacy and meet financial needs.

Financial Planning: An estate plan takes care of funding the education, welfare, healthcare, and other lifestyle needs of the family, while also designating how other family affairs should be handled.

Administration of Assets: Executors or Executors/Trustees can be named in the estate plan to ensure proper management of assets.

Guidance for Minors: Guardians can be appointed for minor children, providing guidance and care in their absence.

Distribution of Assets: The estate plan stipulates the desired distribution of assets among beneficiaries, accounting for any special needs that may arise.

Business Succession/Philanthropy: If a father leaves behind a business, the estate plan can outline how it should continue operating, along with any philanthropic endeavors that should be sustained.

At ARM Trustees, we are experts in the Private Trust business, and we can guide you in creating an estate plan that brings you peace of mind. Contact ARM Trustees via email at [email protected] or call us at 0700ARMENGAGE (0700 2763 64243). For more information, visit our website at https://www.arm.com.ng/trustees/.

Celebrate Father’s Day with purpose. Shape your family’s future with an estate plan that ensures their well-being, preserves your legacy, and offers you peace of mind. Act now and let us help you embark on this important journey.