7 Things A Valid Will Cannot Control

A legal will cannot—and thus does not—control everything. When it comes to estate planning, there are several types of documents that already name your designated beneficiaries. Thus, your will does not control:

1)  Who receives your life insurance proceeds. If you’ve designated a beneficiary, the beneficiary gets the life insurance no matter what you may state in your will. If you have a change of heart, you should change the beneficiary with your life insurer.

2) Who receives money from your retirement accounts. These act like life insurance proceeds. Whoever you’ve designated as your beneficiaries will get the money from the retirement accounts despite what your will may say.

3) Joint checking and bank accounts. These go to the survivor, even if the will says something else.

4) Joint real property. If you have real estate held jointly as tenants in common with the right of survivorship, the surviving party receives the property despite what the will says.

5) Joint property, such as cars. If there are two names on the vehicle title, the survivor gets the car.

6) Assets you’ve put into a living trust. You may want to consider having a living trust in addition to a will. A living trust avoids the probate process and allows beneficiaries to receive your property faster. Discuss your options with an estate planning attorney.

7) If your will is going to be contested. People who expected to inherit from you and did not, or who are not satisfied with their share, may contest your will. As long as you made a valid will and it was reviewed by an attorney, in most cases your will should withstand the challenge. In some cases, however, it will not, and then it’s up to the probate court to decide.

A will is an important instrument, but it must be valid or your property will be divided as if you had died without having a will in place.

As noted above, the formalities required for a valid will vary in each state. Check with an estate planning attorney to make sure your will has been properly prepared.

If you don’t want joint property or life insurance to go to certain beneficiaries, discuss this with an estate planning attorney so you can change your beneficiaries and joint property now before it’s too late to do anything about it.

Writing a Will is easy and simple. Contact ARM Trustees to get started with Easy Will

10 BENEFITS OF A COMPREHENSIVE POWER OF ATTORNEY

Powers of attorney are voluntary delegations of authority by the principal to the agent. The principal has not given up his or her own power to do these same functions, but rather has granted legal authority to the agent to perform various tasks on the principal’s behalf.

A comprehensive power of attorney ensures someone you trust will be in charge of important decisions and tasks, from paying bills to monitoring health care, and is a crucial part of long term planning.

Having covered the explanation of what a durable power of attorney is, here are the top 10 benefits of having a comprehensive power of attorney.

Provides the ability to choose who will make decisions for you (rather than a court).

If someone has signed a power of attorney and later becomes incapacitated and unable to make decisions, the agent named can step into the shoes of the incapacitated person and make important financial decisions. Without a power of attorney, a guardianship or conservatorship may need to be established, and can be very expensive.

Avoids the necessity of a guardianship or conservatorship.

Someone who does not have a comprehensive power of attorney at the time they become incapacitated would have no alternative but to have someone else petition the court to appoint a guardian or conservator. The court will choose who is appointed to manage the financial and/or health affairs of the incapacitated person, and the court will continue to monitor the situation as long as the incapacitated person is alive. While not only a costly process, another detriment is the fact that the incapacitated person has no input in who will be appointed to serve.

Provides family members a good opportunity to discuss wishes and desires.

There is much thought and consideration that goes into the creation of a comprehensive power of attorney. One of the most important decisions is who will serve as the agent. When a parent or loved one makes the decision to sign a power of attorney, it is a good opportunity for the parent to discuss wishes and expectations with the family and, in particular, the person named as agent in the power of attorney.

The more comprehensive the power of attorney, the better.

As people age, their needs change and their power of attorney should reflect that. Seniors have concerns about long-term care, applying for government benefits to pay for care, as well as choosing the proper care providers. Without allowing the agent to perform these tasks and more, precious time and money may be wasted.

Prevents questions about principal’s intent.

Many of us have read about court battles over a person’s intent once that person has become incapacitated. A well-drafted power of attorney, along with other health care directives, can eliminate the need for family members to argue or disagree over a loved one’s wishes. Once written down, this document is excellent evidence of their intent and is difficult to dispute.

Prevents delays in asset protection planning.

A comprehensive power of attorney should include all of the powers required to do effective asset protection planning. If the power of attorney does not include a specific power, it can greatly dampen the agent’s ability to complete the planning and could result in thousands of dollars lost. While some powers of attorney seem long, it is necessary to include all of the powers necessary to carry out proper planning.

Protects the agent from claims of financial abuse.

Comprehensive powers of attorney often allow the agent to make substantial gifts to self or others in order to carry out asset protection planning objectives. Without the power of attorney authorizing this, the agent (often a family member) could be at risk for financial abuse allegations.

Allows agents to talk to other agencies.

An agent under a power of attorney is often in the position of trying to reconcile bank charges, make arrangements for health care, engage professionals for services to be provided to the principal, and much more. Without a comprehensive power of attorney giving authority to the agent, many companies will refuse to disclose any information or provide services to the incapacitated person. This can result in a great deal of frustration on the part of the family, as well as lost time and money.

Provides peace of mind for everyone involved.

Taking the time to sign a power of attorney lessens the burden on family members who would otherwise have to go to court to get authority for performing basic tasks, like writing a check or arranging for home health services. Knowing this has been taken care of in advance is of great comfort to families.

How to set up a Power of Attorney using ARM Trustees Incap Solutions

What is Incap Solutions?

Incap Solutions is a service which enables you to plan for the “in-between” situations whereby an individual is temporarily or permanently incapacitated and is unable to make personal medical decisions or financial decisions.

Incap Solutions employs the use of Medical and Financial Power of Attorney.

A power of attorney is an important estate planning tool through which a person (often known as the principal, grantor or donor) grants certain powers to another person known as the agent, donee or attorney-in-fact. While executing a power of attorney (otherwise known as the POA), the principal could determine the magnitude of power to be granted to the attorney-in-fact, by either authorizing the attorney to deal with only a particular subject matter relating to the principal (a specific power of attorney) or to handle most/all of the principal’s matters (a general power of attorney).

Typically, a power of attorney would terminate upon the death of the principal, there are cases whereby the principal is neither dead nor functional. A Durable power of attorney would be useful in such instances where the principal becomes incapacitated.

To set up an Incap Solutions, please visit here

Credit in part: https://www.mclinburnsed.com

3 Smart Ways to Give Your Child/Ward The Best Education

Imagine the smile on the face of your child, looking directly at you, and wearing that beautiful school graduation gown- That look is priceless! One of the ultimate goals of most parents is to give their children/wards the best of education. The best education to an extent adds the icing on the cake to the parenting career.  Sadly factors such as rising school fees, inflation, and general economic situation of a country always pose as obstacles to this great plan that parents have for their children.

Despite these factors, it is still possible to give your children the best education if well planned. We have listed 3 smarts ways every parent can plan for their children’s education, to guarantee them seeing their children in the beautiful graduation gown.

Start early

Planning for your child’s education is a long-term financial goal. The best time to start planning for your child’s future needs is when he or she is born. Assuming your child will go to the University at the age of 18, you will have nearly two decades to create the right-sized fund for your child’s need. The effect of compounded growth will allow you to achieve this goal with small, monthly contributions.

Diligently choose the right school

Children will mostly likely spend more time in school than at home, parents should be diligent when choosing a school for their children/ward.

The type of school a child/ward goes will have a great impact in the life of the child/ward. Before you settle for a school, you should consider the vision, mission and culture of the school to see if it they align with what you want for your child. You also need to fact check from people associated with that school, such as parents who already have their children enrolled in that school to hear what they have to say about the school

Set up an EduTrust

An edutrust is a legal agreement where money is put aside for the sole purpose of educating the children, irrespective of whatever, untold events the future holds.  It is aimed at assisting parents and guardians in securing uninterrupted education for their child(ren) or ward(s).

As a parent, this trust enables you to provide for the education of named beneficiaries. The standard, level of education is determined by you, subject to adequacy of funds in the Trust account. The Trust can comprise of a lifestyle component to provide for other needs of beneficiaries such as vacations, excursions, school trips etc.

We will love to celebrate you and your kids as they graduate from their dream schools. Get started on making that graduation smile a reality today by setting up  an education trust for your child here

What Exactly Does Next of Kin Mean?

You most likely do not need to think about it anymore, you already know whose name to write every time you are required to name your Next of Kin. But have you ever thought about it? When you name a person Next of Kin, how much authority are you giving to that person, what should you expect of them, what are they empowered to do?

What exactly does ‘Next of Kin’ mean?

The term “Next of kin” refers to your nearest relation according to law, someone to be called upon in case of any eventuality. A next of kin can be a spouse, child or relation. It should however be noted that a next of kin is not necessarily the person intended as direct beneficiary of the deceased’s estate or entitlement.

Your ‘Next of Kin’ is…

  • The first contact point if anything happens to you
  • Empowered to make decisions for you in times of emergency, where you are not readily available or able to make the decisions yourself.
  • Empowered to provide necessary information about you where needed such as confirming your identity
  • Positioned to make medical decisions such as providing consent for a medical procedure

Your ‘Next of Kin’ is NOT…

  • In any way entitled to inherit your estate if anything happens to you
  • Automatically qualified to inherit your wealth
  • Superior to the beneficiaries named in a Will
  • Exempted from the legal processes and laws of inheritance

What can the ‘Next of Kin’ do in case of demise?

Regarding demise and claim of the deceased’s estate, the Next of Kin does not really have legal authority. At best, he or she can ensure that necessary steps are taken towards obtaining letter of administration from the probate.

The way to secure your estate and decide who gets what is to set up a Will or a Trust. Your Pension funds for instance will not be automatically transferred to your next of kin, except he/she is named as beneficiary in your RSA Will. Where there is no RSA Will, the next of Kin mentioned in the Pension Fund Account or any other relation legally recognized must secure grant of probate in order to access the funds in the Pension Account.

I Am Young, Do I Need A Will?

Who needs a Will when they’re young?

Ever struggled with the idea of creating a Will? This article is for you.

For most young persons, writing a Will is for “old people.” It is stuff they shouldn’t bother with because why think about death when they still have their whole life ahead of them?

Let’s dive into this:

What’s a Will?

A Will is a legal document that explains how your assets get distributed after your demise.

Simply put, setting up a legal binding Will helps you keeps your assets out of the hands of people you don’t like. Well…except you’re okay leaving your loved ones at the mercy of vultures. That’s up to you.

Who needs a Will?

Wills are not just for wealthy people or divorced people or married people. They are for ADULTS. Are you 18 years old, mentally stable, have acquired some assets, and have loved ones you deeply care about? You need a Will. Still confused about who needs a will? Read further here

What happens if you don’t have a Will?

Dying without leaving a Will behind can create trouble for your loved ones. They might be plunged into quarrels and emotional drama either amongst themselves or from external bodies that might want to claim your properties.

Secondly, your assets might end up in court, and the court will then determine who distributes your resources. This is called Dying Intestate. The person appointed by the court to distribute your properties is called an Executor. The Executor might be a person you don’t like or trust, and he/she might even distribute your assets in a manner that doesn’t sit right with you. Anyway, what can you do? You’re already dead! Lol.

Thirdly, without a Will, your legacy is left to chance. Let’s say you normally finance an NGO, or you have a pet; without a Will, those things might become a thing of the past.

Now to the favorite part, a Will enables you to give specific instructions about how you want to be buried or remembered. If you don’t like an extravagant burial, you can state that in your Will and your wishes will be respected. If you want to be extra, you can demand to be cremated and your ashes packaged in a bottle, so family members can take the bottle with them every vacation or game night. That way you get to be dead and still feature at functions. See?

How can you create a Will?

It’s very simple, can be created online and in 30 minutes. Again, there’s already a template you can follow, so you don’t need hours of drafting. When you’re done writing, you download it. That’s all!  This type of Will is called EasyWill. It can be done in your own time and speed.

What must your Will contain?

Your name, occupation, residential address, and date the document was created

You need to be clear that it is your “Last Will and Testament.”

List your Executor or Executors. The extra executors are called Co-Executors. You can also appoint an Alternate Executor. These ones stand in, if your first choice is unavailable or dies before you do.

List your assets. Everything you own should be listed. They could even be artworks, buildings, etc. The only assets you’re not permitted to list are the ones you jointly own because the co-owner automatically inherits those on your demise.

Mention your beneficiaries. Your beneficiaries are those who will inherit your assets in the case of eventuality. If you have pets or charity projects, nominate guardians for them and ensure the financials are discussed.  If you have kids, you can set up an Education Trust Fund for them. That way, you’re sure their education will continue regardless of your availability.

How can your Will be executed?

To ensure your Will is legally binding, it must be signed by you and witnessed by two neutral people. Their signatures of these people show that the Will is authentic.

Can a Will be updated?

Yes, a Will can be updated when you acquire new assets, if any of your witnesses dies, or if your marital status changes.

How should a Will be kept?

As a confidential document, it should be confined to a place only known to the beneficiaries and executors because it is meant to be confidential until the testator dies.

Understanding Estate Planning

Having an estate plan is one of the most vital things you can consider for your loved ones. It can help you feel more at peace knowing that your loved ones will be taken care of and that the legacy you leave behind is that which you desire.

What is an estate plan?

An estate plan is a means of managing and preparing for the transfer of one’s assets during their lifetime while minimizing bureaucratic inefficiencies. It also sets how you want designated persons to deal with matters pertaining to your health or financial decisions if you are unable to do so during your lifetime.

It may appear daunting thinking about this, however, it is highly recommended that you start planning early enough. Like the saying goes “if you fail to plan, you plan to fail” as this can lead to unplanned difficulties for your loved ones.

Some myths around estate planning:

*Estate planning is only for high-net worth individuals.

Often times, people think they have to have acquired so many assets before having an estate plan in place. It is important to note that the size of your estate is not a deterrent into having a comprehensive plan. If you own things such as a car, bank account, retired savings account, stocks, jewelry, house, you actually have an estate.

You may also need to bear in mind that you can also update your estate plan upon the acquisition of further assets, so there is no real need to wait until you are wealthy to have a plan.

*I am too young for estate planning.

This ideology is wrong! As soon as you start to acquire assets and of legal age, you should start thinking of having a plan in place. It is also vital to have an estate plan if you have dependents as this is key in protecting their future.

*Once I have an estate plan I do not need to update same.

Planning is never a “once and done” proposition. As change is constant so is ones’ affairs, there will come a time where there may be significant acquisitions or changes, such as marriage, divorce, a new birth, new assets. It is important to periodically review and update your estate planning documents to reflect these changes overtime.

Estate Planning helps you accomplish the following:

  • Preserve assets for future generations.
  • Minimize taxes and expenses.
  • Ensure that individuals you choose can make decisions on your behalf in the event of your incapacity.
  • Ensure all your assets are distributed according to your wishes.
  • Minimize family dispute or conflict upon distribution of assets

Essential Estate Planning Tools:

  • Trust:- A Trust is a legal arrangement made during ones’ lifetime whereby an individual transfers asset to another individual referred to as a Trustee for the benefit for named persons also referred to as beneficiaries.
  • Will:- This is a legal document that sets out ones’ intention of how assets are to be distributed upon demise.
  • Financial Power of Attorney/Medical Power of Attorney:- This type of estate plan appoints a trusted family member or individual to act as an  agent on ones’  behalf to take financial or medical decisions when incapacitated.

It is best to seek expert guidance, to ensure you take the right steps towards achieving your desires. At ARM Trustees Limited, our in-house experts can assist you regarding appropriate steps to ensure you have a seamless and effective Estate Plan.

Reach out to us on our numbers: 0700CALLARM ( 0700276364243)

And email: [email protected]

#IWD2022: Break The Bias – Women and Estate Planning

We commemorate the World International Women’s Day 2022 with the theme  #BreaktheBias and this is indeed an auspicious one. Why? Because it is time we changed a lot of prejudices and preconceived ideas about women, particularly as it relates to estate planning and wealth transfer.

A bias can be described as a disproportionate weight in favor of or against an idea or thing, usually in a way that is closed-minded, prejudicial, or unfair.

In estate planning, there is a huge bias against the idea of women writing wills or planning their estates. In fact, there is a bias against the thought of a woman owning assets.

Very much prevalent is the societal stereotype that when a lady marries, she’s expected to support her spouse and raise children  despite a growing number of women lending their voices to the elimination of this patriarchal view.  It is believed that provision will be made for women from the husband’s estate while some religions do not permit a woman to own properties. The restriction on women owning assets have contributed to the increasing number of contentious estates and the women and children are left at the mercy of the surviving relatives where the spouse dies intestate.   In some States where certain repugnant practises are still prevalent, the wife might be relocated from her comfortable lifestyle and be subjected to a demeaning lifestyle with her children when her husband passes.

For the unmarried lady, who either by choice or happenstance has found herself single, stories abound of how she earned her wealth despite the evidence available that she works hard and is a thoroughbred professional. A successful single lady is expected not to show off her material possessions due to the belief that this will put off men that might wish to approach her for marriage. In some cases, these ladies acquire the assets in the name of their brothers or fathers. If she builds a house, she is expected to tell everyone it’s rented, she shrinks and shrinks, to prevent a suitor from being intimidated by her wealth.

If the prejudice against womenowning assets and transferring their assets to their desired beneficiaries can be eliminated, we will have a society that is more accepting of women. A woman’s financial status should not be used as a yardstick to determine how submissive she is or will be in marriage.

However, because biases can be conscious and unconscious some women are also biased against the same gender- it comes under the guise of culture, tradition and practices. Girls are raised to ensure they acquire housekeeping skills and nurtured to act right and speak well to endear them to their future in-laws.

If we are to break the bias, it will necessitate the woman re-orienting herself and choosing to be successful, while carrying other women along.

Who will start? I hear you ask, “you and I”, I say. The husband who becomes kinder to his wife and realizes she doesn’t need his permission to be great but gives it anyway because society had made her shrink. The intelligent woman who finally takes her brains and credentials out of hibernation mode and steps out and steps up, to make money and to write a will, so as to leave a rich legacy for her desired beneficiaries.

You and I will start the process, we will recognize the bias, we will boldly stand up to it and we will stop it. The good thing is that, as we break this bias, we are consciously showing to other women what is possible and giving them permission to break it in their own lives and societies too.

Cheers to women having conversations about wealth building, wealth management, wealth preservation and most importantly wealth transfer in 2022 and thereafter.

This article was brought to you by ARM Trustees Limited

Contact ARM Trustees via email: [email protected] or call us 0700ARMENGAGE (0700 2763 64243) Visit our website on https://www.arm.com.ng/trustees/

You might not be as financially healthy as you think!

Get free professional advice from an experts

8 tips to help you retire early

Get free professional advice from an experts

Everything you need to know about Treasury Bills

What are Treasury Bills?

Treasury Bills are short term government debt instruments issued by the CBN. This is one of the several ways the government raises funds. The CBN also uses treasury bills to control money supply in the economy.

How are Treasury Bills Sold?

Treasury Bills are sold through a bi-weekly auction conducted by the CBN. Buyers are requested to quote bids following which the average minimum bid is selected.

Where can I buy Treasury Bills?

Treasury Bills can be bought through any official dealer/Agent/Bank.  ARM Securities can also help you buy your Treasury bills.

When is it usually sold?

Treasury Bills are sold every other Wednesday (bi-weekly) as announced by the CBN. The CBN announces issuances on their website and in the pages of the Newspaper. This information can also be found on the DMO’s  (Debt Management Office) website.

How Can I Buy Treasury Bills?

Simply complete our T-bills application form and fund your account with the desired value.

Are Treasury Bills Safe?

Treasury Bills are one of the safest forms of investment and are backed by the full faith and credit of the Federal Government of Nigeria

Apart from the Interest Rates what are the benefits?

  • A good source of steady stream of income
  • Treasury Bills are a good investment outlet for your free and disposable cash
  • Treasury Bills are good investments for people who wish to save
  • Treasury Bills are also tax free
  • Treasury Bills are very liquid and can be converted to cash quickly
  • They can be used as a collateral

Are Treasury Bills Taxable?

Interest derivable from Treasury Bills are not taxable.

Bidding Process

What is the bid rate?

The bid rate otherwise called your STOP RATE is the likely interest rate that you have indicated to receive for the principal that you are investing in the T-bills.

What if I don’t have a Bid rate?

If you do not have a Stop Rate or you are not sure of a rate you can select the prevailing market rate option on the application form.

Can I still buy if my Bid is Rejected?

Yes, you can purchase T-bills from the secondary market by completing the same T-bills application form.

TENURE AND MATURITY

What are the durations (tenor) for the T-Bills?

T-bills are usually for 91days, 182days and 364 days.

Can I sell before Maturity?

Yes, you can sell T-bills before maturity.

When is the interest paid?

The interest element of a treasury bill is paid to you upfront and credited to your bank account.

Can I roll over my Investment?

Yes you can roll over your Investment

Would you like to invest in Treasury Bills or make further enquiries about adding Treasury Bills to your investment portfolio, contact us on 0700 CALLARM (0700 2255 276) or send an email to [email protected].