As a parent, the concern about how to protect your children’s inheritance when considering the wealth and legacy you have painstakingly built is natural. For many, ensuring that financial gifts or an inheritance intended for your children remains within the family, is a top priority. However, the risk of losing this inheritance can be a real concern. It therefore becomes pertinent to explore legitimate means of protecting your children’s inheritance during your lifetime and even after death.
We will examine this fully as well as provide actionable steps to protecting your children’s inheritance.
What Laws Regulate Succession and Inheritance in Nigeria?
In Nigeria, succession and inheritance matters are governed by both statutory and customary laws. The Wills Act, along with various Wills Laws from different states, regulates testate succession, while intestate succession is managed by the Administration of Estates and Probate Laws. Nigeria is home to around 500 ethnic groups, each with its unique native laws and customs. These customary and Islamic laws play a significant role in determining the inheritance rights of individuals within a household. However, some of these customary laws are viewed as inconsistent with the principles of natural justice, equity, and good conscience.
How to Protect Your Children’s Inheritance
Below are 5 actionable steps to protect your children’s inheritance
1. Draw up a list of the assets you own
You could do this with the aid of an estate planning attorney. Real estate, life insurance policies, private businesses, stocks, shares, bonds, debts owed to you, etc. all qualify as assets.
2. Determine how you want your estate to be distributed
In simple terms, this means determining who gets what, where, and how.
3. Decide on the means of transferring your assets to your children.
You can create an estate plan that takes effect before or after death. Where you decide to have your assets transferred before death, you could opt for the following;
- Give such assets to your chosen beneficiary as a gift: Through a deed of gift, such assets are given away automatically with no conditions and become the property of the new owner.
- Create a Living Trust: This arrangement is recognized as lawful in Nigeria and applies in most cases where the beneficiary is either a minor or incapable of handling the assets due to health or other reasons.
In such a situation, you may have your assets transferred to a Trustee (corporate or individual) to manage such assets on behalf of the beneficiary. Such assets are released by the trustee to the beneficiary upon fulfillment of conditions as prescribed by you or the person making the transfer.
Transfer of assets after death could be done in two ways;
- Through the probate process: Under this scenario, a will is prepared and filed at the probate registry for safekeeping. Such will takes effect upon the death of the maker of the will.
- Transfer through substitutes other than a will: A classic example of such policy is the Life insurance policies created by insurance companies. Where an individual subscribes to a life insurance policy, he or she must stipulate his nominated beneficiary on the form provided.
Upon the demise of the purchaser of the policy, only the beneficiary or guardian (where such beneficiary is a minor) can lay claims to the policy.
4. Execute your estate plan
This simply means, having your witnesses append their signatures on relevant estate plan documents where necessary e.g. Wills, Insurance policies, living trust policies, etc. Arrangements must be made to ensure such documents are safely kept.
5. Review your estate plan regularly
We live in a world where change is inevitable. Therefore, it is important to regularly update vital information related to your estate plan. Some circumstances that may necessitate an update to your estate plan include:
- Where you effect a change of name.
- Where there is a change of status e.g. marital status, etc.
- Where there are new members in the family.
- Where a witness is deceased.
CONCLUSION
Protecting your children’s inheritance through an estate plan is not just for the wealthy or the elderly. If you have assets, it’s never too early to decide how they will be distributed and to take proactive steps to ensure your children’s financial future is secure.
Children are often among the most vulnerable members of a family and can become caught in the middle of family conflicts, marital disputes, inheritance issues, and custody battles. To prevent unnecessary legal struggles and protect their children’s rights during asset distribution after their passing, parents should take necessary precautions. By considering the steps outlined in this article, parents can help ensure the security of their children’s inheritance. Don’t let your loved ones suffer due to your absence. If you’re ready to safeguard your children’s inheritance, please contact us through the WhatsApp icon on this page or send us an email, and we will respond promptly.
