Ask Shade

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My name is Philia, I have two children. I earn a lot more than my husband does but I try to downplay my income because of his ego. Although we live in a rented apartment in Surulere, I have built two houses over the years, one at Amuwo Odofin, the other at Ikorodu. My children are currently seeking admission into universities and I would like them to school abroad. My husband says we can’t afford it but he doesn’t know about all the property and wealth I have saved up over the years and I still don’t want him to know because of his personality. Can I set up a fund for my kids’ education that will pay the fees directly without linking back to me? I want the best for my children but I also want to keep my home.


Hi Philia,

I would recommend that you set you set up an inter-vivos Trust and gift all your assets to the Trust. Your children will be beneficiaries to this Trust and your appointed  Trustee will have the responsibility to ensure that appropriate investments are made, your children’s school fees are paid as and when due and allowances are given. They are protected both during your lifetime and following your demise.

With regards to your concerns about remaining anonymous, by nature, a trust is a confidential relationship and it is possible to achieve your objective using this structure.


Brexit – The Nigerian Perspective

If you listen to news of any kind, especially international news, you would definitely have heard the term ‘Brexit’ more than a few times in the last few days. Coined from Britain- Exit, the term refers to Britain’s decision to pull out of the European Union.

Over 70 years after the establishment of the European Union (EU), the United Kingdom is the first country to demand an exit.  The decision is the direct consequence of a referendum (poll) where 52% of the population voted ‘Leave’ over the 48% that voted ‘Remain’.  Such a referendum is the first of its kind, with no precedent or example as to how the proceedings will go or what the world should expect. Analysts world over have however attempted to predict events that will follow and likely implications.

For Nigeria as a commonwealth nation, the eventual implications of Brexit might trickle down to us. In the immediate aftermath, there are just a handful of markers to consider in discussing Brexit for the benefit of Nigerians.


Weaker Great Britain Pound:  The first Brexit impact is the weakening of the Great Britain Pound relative to other currencies. Hence buying pounds now might not be a great idea. On the other hand, Shopping in the UK might be less expensive as the Naira will likely buy more than it would have before now.

Risky Investment threshold: Brexit poses a lot of political and economic uncertainty pending the actualisation of the breakaway. Foreign investors would be wary of pumping money into unstable economies. Hence, developing countries like Nigeria, which are generally considered as high risk investment destinations, are likely to witness even more reduced foreign investments.

Lower oil prices: In the aftermath of the Brexit vote, oil prices have weakened which is a negative for Nigeria as a major oil exporting country.

Eurobond issuance impossible or inflated: As stated in the 2016 budget, Nigeria plans to issue Eurobond to the tune of $US1 billion to finance the government spending. In the face of these economic uncertainties following Brexit, Nigeria will most likely find it difficult to raise the bond or at best will be forced to borrow at a much higher (expensive) rate.

Nigeria will be forced to look within for revenue: As a consequence of the above, including the potential decline in foreign investments, Nigeria will have to innovate internally to raise the funds needed to run the nation.

Travel processes remain the same: if you are a frequent UK traveller, you need not worry. Travel processes are likely to remain the same regardless of Brexit.

Should you invest in spite of all these? Yes, uncertain times are the best times to invest, especially because panic sell-offs are likely to be overdone. Investing now would allow you purchase good assets at cheaper prices with potential to generate greater returns in the near future.

Pass this to my children: an RSA Wills Story

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Pass this to my children!

Like most fathers, I would like to leave a good inheritance to my children. Something that can give them a good start in life by which they can remember me long after I’m gone. Some fathers are affluent enough to buy their children houses and even replace such houses when the child is not satisfied. But I hardly have anything, save for this house we live in and another plot of land in the village.

When my friend spoke about setting up a will, I laughed as I asked him what assets we have to set up a will on. Feeling smug, I told him of my age long plan; upon my retirement, I will call my children and give each child 10 % of my pension fund.  This would surely give them a head start in life and I would still have 60% to fall back on in old age. Maybe I would start a small business thereafter to keep me busy.   ‘What will become of your house and your land in the village?’ my friend asked. ‘My children can do whatever they like with them when I’m gone’, I told him.

Nodding, my friend agreed. ‘It’s not a bad plan, your pension is a substantial asset’, he said. ‘But what if the unfortunate happens before you retire, what will happen to your pension?’  Pausing to think, I answered assuredly. ‘Well, it will amount to almost the same thing; the pension will still go to my children’. ‘Ken, these things are not automatic o, if you want your pension to go to your children, you need to set up a Will for your pensions account, naming your children as your beneficiaries,’ he explained, opening my eyes to a reality I had not considered.

Many of us have plans for our pension funds. Plans to reinvest it; live on it or even pass it on to our children. Most of us however do not consider setting up a plan that will ensure our pension fund is distributed based on our wishes in case of unforeseen circumstances. A Retirement Savings Account Will (RSA Will) is a legal document set up by an individual stating clearly what should happen to his/her pension fund upon demise. This document allows you to state beneficiaries to the funds and what portion they receive.

In the case where a person passes on without setting up an RSA Will, his pension funds cannot be given to anyone, not even his next of kin. The law requires that for any other person to be able to claim the deceased’s pension, he/she must provide an RSA Will or a letter of administration obtained from the court. Obtaining a letter of administration is a tedious and time consuming process; more exhausting than the process of obtaining letter of administration is the strife and bitterness that may emanate among family members over such unallocated funds.

Setting up an RSA Will is easy and affordable; the wise thing to do is to set up an RSA Will today.

Preparing for the future does not mean you are inviting loss. On the contrary, the assurance that your future is secure enables you enjoy life more. Let us walk you through setting up an RSA Will, call ARM Trustees today.