Author: ARM

By Mofoluke Keshinro TEP

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

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.