Ask Shade: My Late Father’s Family Head Wants to Give the Family House to Our Irresponsible Half-Brother

Dear Shade,
I came across a few of your previous articles and I am hopeful that you will be able to help with my dilemma. I am the first child of my father who recently passed away. He had two wives and five children; one son and four daughters including me. My mother, his first wife had only daughters, while his second wife had a boy and a girl.

Besides my half-brother who has not been able to progress academically, we are all relatively successful in our careers and academics. My father did not have a will, so the family head is going to distribute the inheritance and he is about to give everything to my half-brother, the first and only son, in the name of tradition.

My brother is young and hardly responsible, my sisters and mum also feel cheated. I am worried that my half-brother will mismanage everything my father worked for. Is there anything I can do to ensure the inheritance is distributed among us all? Does tradition still count in this day and age? He left us houses, land, pension fund and cash in his bank account.
Ivie, from Edo state.
**
Hello Ivie,
Please accept my condolences on the passing of your father. Dealing with the loss of a close relative is never easy. The extra burden of sorting and distributing properties left behind can also be very stressful, especially when the deceased did not have a Will.

When a person dies without a Will, the intestacy rules, native laws and customs and religious rules of the deceased determine the succession of his properties (also known as “Estate”).

To determine which law would be applied, it would also be important to consider your father’s State of Origin. If your father was a Benin man (which I presume) subject to the customs of the Benin tradition, the law requires that the eldest surviving son would be entitled to the family house where your father lived after the performance of the second burial ceremonies while the remaining properties may be distributed amongst the remaining children.

In this scenario, your brother being the eldest son of your father may be entitled to your father’s family house, whilst the remaining of your father’s assets would be distributed amongst the you and all siblings.

Kindly note however that although the traditions may be adopted for the distribution of your father’s assets, those traditions must not on the basis of your gender, violate your rights. Based on a recently decided Supreme Court case, the rights of female children to inherit their parents’ properties was supported, and the Igbo tradition that disinherits female children was found no longer applicable. This means that where the local traditions are in any way contrary to your rights, they would be invalid in effecting the distribution of your father’s assets.

It is important that you strive to maintain family unity in your resolution. Perhaps a family meeting where the distribution process is clearly discussed and agreed upon by concerned persons would help. If you consider it necessary, you could employ the services of a lawyer to guide you on the Supreme Court’s landmark judgment on inheritance, especially as it affects women.

This situation and the accompanying hassle could easily have been avoided if your father had a Will. It is important that you take a learning from this and as such commence planning your estate in good time.

The post Ask Shade: My Late Father’s Family Head Wants to Give the Family House to Our Irresponsible Half-Brother appeared first on Realising Ambitions.

Source: Blog

Rising Tide Africa launched with ARM at African Angel Investment Summit

A group of experienced international business, Angel Investment angels and women investors from Africa, Europe and the USA have come together with ARM Securities Ltd. and ARM Trustees Ltd. to create “Rising Tide Africa”, (RTA) a unique, trans-border women-oriented investment program and funded by private investors who believe they will bring about positive change by investing in the continent’s exciting start-ups and next generation to create a New Africa.  The investments will range from 50 K USD to 500 K USD but always with the goal of bringing about a positive change.

Rising Tide Africa will be powered by ARM Securities Limited and ARM Trustees Limited, both members of the ARM Group which have been leading investments in entrepreneurial ventures and are dedicated to bringing about a better Africa.  In particular, ARM Securities will be bringing its financial advisory experience to help power “Rising Tide Africa” and will also share deal-flow on a case-by-case basis.

RTA shall be a leading and pre-eminent managed investment pool primarily focused on investments in digitally and technology-enabled companies.  This will bring a quantitative as well as qualitative return to improving the lives and lifestyles on the African continent, by, for example, providing access to health, education, energy, water, agriculture, commerce, transport, and several communications services and infrastructure. RTA will also be actively involved in the promotion of investment literacy among women in Africa.

It is intended that RTA shall be a preferred equity partner in Africa and a first mover in technology and digitally-enabled, early-stage technology investing in most parts of Africa. RTA seeks to pursue investment opportunities that have the potential to yield strong financial returns and significant impact in Africa.

RTA seeks to offer women an opportunity to build a diversified portfolio of early-stage investments in innovative African companies as well as training opportunities for women to become sophisticated angel investors, and networking with other women in this one of a kind angel community.

 

Rising Tide Africa” is by far the most ambitious incarnation of the “Rising Tide/Next Wave” movement which aims to bring experienced women private angel investors together with experienced business and corporate women executives who are investing for the first time. The movement originally started in the USA in 2015, followed in quick succession one month later in Europe with Rising Tide Europe 1 and 2 and now Rising Tide Africa.  Several of the Rising Tide Europe Board Members, Deal Leaders and LPs are involved in the setting up Rising Tide Africa.

The President of Rising Tide Africa is Dr Ndidi Nnoli Edozien (Nigeria) and the Board Members are Rebecca Enenchong (Cameroon), Evelyn Oputu (Nigeria), Hedda Pahlson-Moller (Sweden), Olayemi Wonuola Keri Crisc, (Nigerian), Clementine Vervelde (Rwanda), and Isabelle de Melo (Mauritius/Swiss) and a Representative from the ARM Group.  The Investment Committee Members are Brigitte Baumann (Swiss), Candace Johnson (USA/France/Luxembourg), Audrey Mothupi (South Africa) and Lexi Novitske (USA/Nigeria). ARM Securities Ltd and ARM Trustees Ltd. will also be represented in the Investment Committee.

 

Quotes:

Dr Ndidi Nnoli Edozien, President of Rising Tide Africa:  “It is my privilege to play a founding role inspiring this Movement of Investors from diverse backgrounds, co-investing with a shared vision to harness, develop, educate, mentor and network across borders, while nurturing scalable, replicable ventures that contribute to sustainable economic growth across our great continent Africa, most excitedly powered by some of the world’s most courageous Women.”

 

Jumoke Ogundare, Group CEO, Asset & Resource Management Holding Company Ltd.:  “We are proud to be associated with the RTA and support its raison d’etre of bringing together women, innovation and business. This combination would undoubtedly stimulate economic growth in Africa.”

Tomi Davies, President ABAN: “We at ABAN are very happy to support such an innovative approach to investing on the continent.  With RTA our women take their rightful place in contributing to the advancement of the African entrepreneurial ecosystem.  I am proud that ABAN is able to help make this happen and commend the initiators of this laudable project.”

 

Candace Johnson, President EBAN: “It is an honour to work with ABAN, the ARM Group, and Go-Beyond to create ‘Rising Tide Africa’.  We are looking forward to making great investments together which will bring about a ‘New Africa’.”

 

Brigitte Baumann, Founder and Chair of Go Beyond: “We are delighted to support RTA, the first of its kind learning and investing program leveraging the experience gained with the Rising Tide Europe programs. “

 

Who is ABAN?

The African Business Angel Network (ABAN) is a pan African non-profit association founded early 2015 to support the development of early stage investor networks across the continent and to get many more (early stage) investors excited about the opportunities in Africa.

 

Who is ARM Securities Ltd?

ARM Securities Limited is a limited liability company licensed by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) as Issuing House and Broker-Dealer firm respectively. Formerly known as Hamilton Hammer, the Company commenced operations in 1994 and became a wholly owned subsidiary of Asset & Resource Management Traditional Asset Management Limited (ARMTAM) in 2008. ARM TAM is a member of the ARM Holding Company Limited, the largest, independent non-bank financial institution in Nigeria.  Under ARM’s leadership, the Company has successfully been repositioned as a recognized financial advisory and brokerage firm in Nigeria.

 

Who is ARM Trustees Ltd?

ARM Trustees Limited (“ARMT”), incorporated in October 1997, is a wholly-owned subsidiary of ARM Traditional Asset Management Limited (ARMTAM), a member of the Asset & Resource Management Holding Company Limited.  Licensed by the Securities & Exchange Commission (SEC), ARMT was incorporated to carry out a wide range of trusteeship services to Public sector, Corporates, Institutional and Private clients. ARMT’s corporate trust services include trusteeship under Private Equity structures, Loan Syndication/Consortium, Project/Structured Finance, Collective Investment Schemes, and Debenture Trust arrangements. The Company also renders private trust and estate planning services.

 

Who is EBAN?

EBAN is the pan-European representative for the early stage investor gathering over 150 member organizations more than 50 countries today. Established in 1999 by a group of pioneer angel networks in Europe with the collaboration of the European Commission and EURADA, EBAN represents a sector estimated to invest 7.5 billion Euros a year and playing a vital role in Europe’s future, notably in the funding of SMEs. EBAN fuels Europe’s growth through the creation of wealth and jobs.

 

Who is Go Beyond?

Go Beyond Investing enables novice & experienced, small & large investors, to access angel investing as an asset class through its unique platform, portfolio tools, education and expert angels. Go Beyond operates in Europe and the US. It has been in the top 10 Swiss FinTech startups in 2015 and 2016.  Go Beyond is managing the Rising Tide Europe 1 and 2 programs.

 

Ask Shade- Mrs. My Son is Irresponsible

Ask Shade- Mrs. My Son is Irresponsible

Dear Shade,
My husband and I have only one son who has refused to do anything serious with his life, because he assumes all of our wealth will come to him and there is no need for him to work.
Although we intend for him to inherit all that we have, I want him to learn responsibility before we hand over our group of companies to him. I would like for him to come into his inheritance only after he has successfully proven his responsibility, perhaps after having held employment with a proper organisation for a minimum of five years.
Is there a provision in a trust to ensure this happens whether or not we are alive to enforce it?
Kofo, Lagos

**

Hello Kofo,
Thanks for reaching out. Your situation is not peculiar. It is very common for children born into affluent families to grow up with an entitlement mindset. This often affects their drive and leaves them completely unambitious and reliant on the family wealth.

While it is important that we provide for our children and give them a good quality of life as much as we can afford, it is also essential that we teach them from the cradle the value of hard work and independence. We must remind them that everything they enjoy is a result of our commitment to work and that they must strive to create a life for themselves also. They should see their parents’ wealth as a good foundation, or a stepping stone, a pedestal on which they can build their own legacies, win their own laurels and claim their own victories. However, some children refuse to learn diligence regardless of the parents’ efforts.

You are thinking in the right direction. Setting up a Trust is a very effective way to preserve your wealth for your son while attempting to reengineer his attitude to work. Regarding the possibility of withholding his inheritance till he has proven his responsibility, yes, this is possible. Such exigencies can be catered to.

You can either create a spendthrift Trust or include spendthrift provisions in the Trust, which would restrict your son from directly accessing the funds in the Trust until he acts in a more responsible manner – as may be ascertained by the Trustee. The Trust would hold direct interest in your assets and would only distribute some of the returns of those assets to your son where he meets the standards of responsible living that you may have prescribed. Your assets would therefore be professionally managed and would not be dissipated by your son. Your son would, however, be able to receive benefits from the Trust over time once he is acting responsibly.

Apart from setting up the Trust, you and your spouse can also sit your son down for a long heart to heart discussion. You can lovingly explain to him your dreams and expectations of him while reiterating your confidence in his abilities and willingness to support his ambitions. You can never tell, he could have a career path he is passionate about and eager to pursue.

While it may not particularly be related to the family business, supporting him in his chosen field will give him the leeway to learn responsibility and ultimately prepare him for his family fortune. Who knows? His idea could grow into a lucrative arm of the family’s group of companies.

The post Ask Shade- Mrs. My Son is Irresponsible appeared first on Realising Ambitions.

Source: Blog

Who is Entitled to Stella’s Money?

Stella's-Money-Infographic-(Final)---Email

[nectar_btn size=”large” button_style=”regular” button_color_2=”Accent-Color” color_override=”#d0701a” icon_family=”none” url=”http://trustee.gbaradi.com/rsa-wills-result/” text=”See Answer Here”]

Do I have to tell My husband?

[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]

Hi Shade,

My name is Gloria, I got married 5 years ago at 35. Before the wedding, I already built a house at Mowe, a block of  6 flats, and I have other undeveloped property that I didn’t tell my husband about(so as not to intimidate or repel him). My plan is to gift the property to my children as a start-up fund the moment they are done with university. Do I have to declare these assets to my husband? If anything happens to me along the line, how can I ensure my children get them? The property were bought in my name.

Answer:

Hi Gloria,

You can set up a Trust and transfer these assets to the Trust. The assets will be held in the name of your Trust/Trustee (a person or firm that holds and administers property or assets for the benefit of a third party) and in due course, income generated from these assets can be given to your children to start up their own businesses. Alternatively, at a designated time, your Trustee may sell your acquired real estate asset and give proceeds to your children as seed investment for their businesses. You can guide your trustees, even in absentia through a Letter of Wishes. Putting the assets in a Trust today offers the protection you require for the assets because such assets will be legally independent of you.

As you are still young and active, I would recommend that you set up a Trust that still leaves the role of management of your assets and investment decisions to you.

[/vc_column_text][/vc_column][/vc_row]

Ask Shade

[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]Hi Shade,

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.

Answer:

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.

[/vc_column_text][/vc_column][/vc_row]

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.

brexit-1481024_960_720

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

[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]

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.

[/vc_column_text][/vc_column][/vc_row]