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Ask Shade about Trusts: My Parents Left Me Too Much to Handle

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Ask ShadeHello Shade,
My parents left me a huge inheritance when they passed away last year. I am just 22 and I don’t think I have enough experience and know-how to manage that kind of money yet. I want to take a few years to further my education and pursue my passion. How can I secure my inheritance while I’m away?
Bola, Lagos
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Hello Bola,
I commiserate with you on the passing away of your parents. Your ability to pick yourself up and address issues from a rational perspective despite your loss is commendable, as is your desire to further your education regardless of your buoyant financial status.

While it is great that you have chosen to pursue a future of your own, it is important that you appreciate your parents’ sacrifice and kind gesture in leaving you an inheritance. This gesture confers a huge responsibility on you, bordering on the preservation, judicious use and growth of the assets that now belong to you.

For instance, if your inheritance includes functional organisations or property that require maintenance, the responsibility now rests squarely on your shoulders. You would have to keep an eye on operations, ensure the business continues to run, salaries are paid as and when due, maintenance policies are put in place among many other necessities. If your inheritance is liquid as well, the wise thing to do is to ensure it keeps growing via profitable investments and proper handling.

However, it will be extremely difficult, if not impossible to do all of these while you are away studying and charting your own path in life. In order to guarantee the preservation and growth of your inheritance without interfering with your plans and activities, you should seriously consider setting up a Trust.

A Trust can be defined as any arrangement whereby assets (such as your inheritance) are transferred by you as a Settlor (creator of the Trust) into a Trust with the intention that the Trust is to be administered by the Trustee for your benefit and the benefit of any other persons or entities that you so choose.

A corporate trustee (such as ARM Trustees) would have the capacity and experience to manage your inherited assets whilst you focus on your education and pursue your passion. A part of the income on those assets or a portion thereof would be transferred to you periodically until you complete your education or until any stated future time. The Trustee would provide you with periodic reports on the management of your assets and may also take instructions on the management of the assets from you, where necessary.

You may choose to make the Trust a Revocable Trust so that when you believe that you are ready to fully manage your inheritance, the Trust may be terminated and the Assets would be transferred back to you.

Should you require further information and guidance about how to set up a Trust or Investment opportunities to consider for the preservation of your assets, please write to me. I will be glad to help.

Folashade has a wealth of experience in legal structuring, capital markets, and financing transactions. Her expertise also spans Private Trust, and other succession/estate planning alternatives. Currently, she is Managing Director of ARM Trustees Limited, a subsidiary of the ARM Group charged with asset protection, wealth transfer and generally, succession and estate planning.

18 Comments

  1. Loki

    December 14, 2016 at 5:20 pm

    Dear Bola,
    I am sorry for your loss. Please accept my condolences.
    I am a funds manager. Not much experience- I just started funds management today after reading your agony question. But I will like to help you with this problem because I have a passion for young people; particularly young people of high net worth.
    If you are interested in my services, please send me an email at [email protected] and I will get in touch with you immediately.
    I look forward to hearing from you.
    Kind Regards

    • molarah

      December 14, 2016 at 8:22 pm

      You want to manage someone’s inheritance, and it’s this yahoo-boy sounding email you used? Not only “not a scam”, indeed! Sister, package yourself seriously if you are interested in doing business.

    • Loki

      December 14, 2016 at 8:42 pm

      Molarah, I’m sure you’re loads of fun at parties…

    • Ify

      December 14, 2016 at 10:39 pm

      Madam, Loki was clearly being sarcastic.

    • Jo!

      December 15, 2016 at 9:21 am

      Ahn ahn! Is nigeria that hard that we’ve COMPLETELY lost our sense of humor? Laugh a little ma, it’ll do you a world of good

    • Tosin

      December 14, 2016 at 8:32 pm

      Chai. Chai.

    • Jo!

      December 15, 2016 at 9:23 am

      Loooool. Loved this

    • Judgejudyjudy

      December 15, 2016 at 1:02 pm

      Your sarcasm has a Masters’ degree ???.

    • aj

      December 16, 2016 at 5:18 am

      there is a time and place for sarcasm and this is clearly not the place for it….oversabi!

    • Loki

      December 16, 2016 at 7:39 am

      Aj -Smile…don’t you know God loves you? Do you know that song?
      This isnt sarcasm, it’s a joke. And it is exactly the place for it. It’s the internet for God’s sake. Bola doesnt care about me; or you for that matter. Bola the heiress didn’t post this question to BN, Shade from ARM did, and she has beautifully and professionally given qualified advice.
      Why must I join the throng of people telling her “look for someone reputable to help you”? She (if she actually exists) has already gone to ARM, that should tell you she isnt as humourless as those thinking “[email protected]” is an actual email address. She knows the exact sort of professional to pose her questions to- not some faceless people on the internet.

  2. vora

    December 14, 2016 at 8:36 pm

    Please nobody should mail this “loki”.he wld hack ur email account

  3. vora

    December 14, 2016 at 8:38 pm

    Bola.its a pity about ur loss.i know the feeling bcos i lost my dad and elder sister some years ago.i wld advice u to get in touch with known proffessionals to guide and manage u

  4. Idomagirl

    December 14, 2016 at 9:07 pm

    Please get in touch with a reputable asset management company.

  5. Idomagirl

    December 14, 2016 at 9:08 pm

    Condolences on your loss.

  6. Awiase

    December 14, 2016 at 10:20 pm

    My condolence to you dear.But you will get through it.Remember to trust in Jehovah God.If he brings you to the trial,he would get you through it.And do your researches well so no one scams you.all the best

    • Anon

      December 14, 2016 at 11:25 pm

      She’s asking for financial advice as I’m sure she has pastors, priests, imams or even an ifa if she wanted spiritual advice. Is this the only way educated Nigerians know how to address issues? By avoiding actual mental work and offering the usual prayer advice? Do you think others offering actual advice aren’t as religious or what?

  7. Awiase

    December 15, 2016 at 12:07 am

    Am not implying that.Maybe I wasn’t clear enough.i mean believing in God and doing good researches to find good people to help her so she doesn’t get scammed by just anyone.Please read my last sentence well.Because heaven helps those who help themselves.

  8. Rayva

    December 16, 2016 at 8:02 am

    @loki…….please let’s be friends

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