Author: ARM

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.

When we hear about record-breaking achievements, our minds often wander to the fields of sports or entertainment. However, sometimes extraordinary accomplishments can be found in unexpected places, such as the culinary world. Nigerian Chef Hilda Baci recently made headlines by breaking the Guinness World Record for the longest cooking hours, spending an astonishing 100 consecutive hours cooking. While her achievement is undoubtedly impressive, it also serves as a powerful reminder of the importance of having an estate plan and a will in place.

Recognizing the Importance of Planning:

Just as Chef Hilda Baci meticulously planned her record-breaking cooking marathon, so too should we meticulously plan our estates. Estate planning involves organizing and managing our assets during our lifetime and ensuring their smooth transfer to our chosen beneficiaries after our passing. It is an essential process that provides peace of mind and security for ourselves and our loved ones.

Protecting Your Loved Ones:

Chef Baci’s determination and perseverance are qualities we should emulate when considering the well-being of our loved ones. By establishing a comprehensive estate plan and drafting a will, we can protect our family and ensure their financial stability. A will allows us to specify how our assets should be distributed and who will assume guardianship of our minor children, ensuring that our wishes are honored even after we are gone.

Preserving Your Legacy:

Just as Chef Hilda Baci’s remarkable feat will be remembered for years to come, an estate plan can help preserve and protect your personal legacy. Through estate planning, you can outline how your assets should be utilized, whether to support charitable causes, establish scholarships, or contribute to causes that are meaningful to you. By doing so, you can make a lasting impact on the world and leave behind a legacy that reflects your values.

Minimizing Conflicts and Taxes:

An estate plan and will can help minimize conflicts among family members by providing clear instructions and preventing ambiguity. By clearly articulating your intentions and wishes, you can reduce the chances of disputes arising over your assets. Additionally, a well-crafted estate plan can help minimize tax liabilities, ensuring that more of your hard-earned assets are preserved for your loved ones and the causes you care about.

Seeking Professional Guidance:

Just as Chef Hilda Baci honed her culinary skills through years of experience and sought guidance from experts in her field, it is crucial to consult with professionals when creating an estate plan. Estate planning attorneys and financial advisors can provide valuable insights and help navigate the complexities of the process. Their expertise will ensure that your estate plan is legally sound, tailored to your specific needs, and aligned with the applicable laws and regulations.

Final Note:

Chef Hilda Baci’s extraordinary accomplishment in the culinary world reminds us of the importance of preparation, determination, and setting goals. Similarly, when it comes to estate planning and will preparation, we must approach the task with the same level of dedication and foresight. By taking the time to plan our estates, we can safeguard our loved ones, preserve our legacy, and ensure that our wishes are fulfilled long after we are gone. Let Chef Hilda Baci’s record-breaking journey inspire us to embark on our own journey towards securing our financial future through estate planning and will preparation.

Ready to plan for your future?

Contact ARM Trustees today on www.arm.com.ng/trustees

Email: [email protected]

Choosing your next of kin is an important decision that requires careful consideration. Your next of kin is the person who will be responsible for making decisions about your medical care and other important matters if you are unable to do so yourself. This could happen in the event of a serious illness, injury, or even death. Here are some things to consider when choosing your next of kin.

Legal Considerations

In most cases, your next of kin will be your spouse or your closest blood relative. However, it is important to note that the laws regarding next of kin can vary depending on your location and personal circumstances. For example, if you are married but separated, your spouse may not be considered your next of kin. Additionally, if you have children from a previous marriage, they may have legal rights that could affect who is considered your next of kin. It is important to consult with a legal professional to ensure that you have a clear understanding of who is legally considered your next of kin.

Personal Considerations

While legal considerations are important, it is also important to choose a next of kin based on personal factors. You want to choose someone who you trust to make decisions that are in your best interest. This person should also be someone who is willing and able to take on the responsibilities of being your next of kin. For example, if you have a close friend who is more responsible and reliable than a family member, you may want to consider choosing them as your next of kin instead.

Communication

Once you have chosen your next of kin, it is important to communicate your wishes to them. Let them know that you have chosen them and explain what responsibilities they will have if the need arises. You may also want to consider creating a formal document, such as a living will or healthcare proxy, that outlines your wishes for medical care and other important decisions. This can help ensure that your next of kin understands your wishes and can make informed decisions on your behalf.

Review and Update

Your choice of next of kin may change over time as your personal circumstances change. For example, if you get divorced, you may want to choose a new next of kin. It is important to review and update your choice of next of kin periodically to ensure that it still reflects your wishes and circumstances.

In conclusion, choosing your next of kin is an important decision that requires careful consideration of legal, personal, and communication factors. By choosing a trusted and responsible individual, communicating your wishes, and periodically reviewing and updating your choice, you can ensure that your next of kin will be prepared to make important decisions on your behalf if the need arises.