Economy
Five Factors to Consider when Choosing the Right Estate Plan
By Rotimi Obende
The concept of Estate Planning dates to ancient civilizations, when people began to think about how their assets would be distributed after their death.
In ancient Egypt, for example, people would often create a Will, which was a legal document that outlined their wishes for the distribution of their property. They would also designate heirs who would inherit their wealth. This practice highlights the enduring importance of planning for the future.
Securing your future and those of your loved ones is of utmost importance, and you can achieve this by having an Estate Plan.
Knowing and choosing the right Estate Plan can be complicated, as you will need to consider peculiarities and other factors that are specific to you alone. Because of the complex nature of Estate Planning, you will need practical advice and an expert institution to guide you.
This article will explore the following five factors, offer practical examples, and provide valuable insights to assist you in effectively managing the Estate Planning process:
Define Your Goals and Objectives
To commence your Estate Planning process, it is important that you first define your goals and objectives. Think about your assets, consider how you want your wealth distributed, any philanthropic goals you may have, and other specific wishes you want fulfilled. For example, you may want to ensure that a portion of your Estate goes towards supporting education or healthcare initiatives. By clearly defining your goals, you can tailor your Estate Plan to reflect your values and intentions.
Seek Professional Advice
Estate Planning can be a complex process that involves legal and financial workings, which is why it is essential that you seek the guidance of an expert. There are a few estate planning institutions that can guide you and help you navigate the legal requirements and tax implications while ensuring that your Estate Plan complies with the current laws and regulations governing the jurisdiction where you reside. At FBNQuest Trustees, we are fortified with a team of experienced professionals that will ensure you choose the most suitable Estate Plan that speaks to your need. Our reliable advisors can assist you in making the right choices that safeguard your assets and ensure seamless transfer to your beneficiaries.
Determining the Right Instrument
With your intentions in mind, `professionals will provide tailor-made advice on the appropriate tools to adopt, which could either be Wills, Trusts, and Powers of Attorney. For instance, a Living Trust allows you to manage and distribute your assets during your lifetime for your benefit and that of your loved ones. Even in the event of incapacitation or death, the Trustee must still adhere to the terms outlined in the Trust Deed. A Will, on the other hand, outlines your wishes for asset distribution and guardianship. This, however, only takes effect upon your demise. Understanding these documents will enable you to make informed decisions about their inclusion in your Estate Plan.
Consider Family Dynamics
When planning your Estate, it is crucial to consider your family dynamics. Let’s explore a typical scenario: You have a family-owned business that you wish to pass on to your children. However, you have one child who is actively involved in the business while the other pursued a different career path. In this case, you may want to structure your Estate Plan to ensure a fair distribution of assets, acknowledging the dedication and involvement of the child in the business. One possible solution is to establish a Trust that appoints a child who is skilled and knowledgeable in the business as a director, while the other child takes on a less active role or no role at all. The Trustee can then distribute profits according to the terms of the Trust Deed. By addressing these unique family dynamics, you preserve family harmony and ensure a smooth transition of both the business and other assets.
Regular Review and Updates
It’s crucial to understand that Estate Planning requires continuous attention. As life situations, laws, and financial conditions change over time, it’s essential to regularly review and modify your estate plan. Births, deaths, marriages, divorces, or financial status changes may require adjustments to your plan. It’s important to keep your Estate Plan current and in line with your desires. Regular reviews are a great way to ensure everything stays up-to-date and accurate.
Choosing the right Estate Plan requires thoughtful consideration, professional guidance, and regular reviews. By defining your goals, seeking expert advice, considering family dynamics, and fostering open communication, you can create an Estate Plan that reflects your wishes and secures a legacy.
Rotimi Obende is the Head of Private Trust at FBNQuest Trustees
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.
Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.
Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.
As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.
The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.
The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.
The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.
A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.
The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.
On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.
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