WHY YOU NEED A WILL.

There is a general apathy in Nigeria about making plans for the transferring of assets to the future generation, the thought of planning for the inevitable death puts people in a terrible state of fear that gives them stress, discomfort and anxiety.

Notwithstanding the difficulty in deciding to sit down and plan for the day you will no longer be here, it is essential and a real show of care and concern for your family and loved ones if you are able to do so. If you do not make those critical decisions regarding how your financial and family matters will be handled after you are gone, other people you do not know will compulsorily make them for you.

Your neglect in taking action now, while you are alive, may lead to an array of family disputes, business liabilities and collapse as well as bitter litigations which can destroy your hard- built wealth and assets.

This week we will be looking at Estate Planning with emphasis on the testamentary instrument otherwise known as Wills.

WHAT IS A WILL

A Will is a testamentary and revocable documents voluntarily made, executed and witnessed according to the law by a testator (meaning person making the will) with sound mind. It is important to mention that the applicable laws in the Nigeria legal system are a combination of received English laws, local law, customary law and judicial precedents. The formalities of making a valid Will is contained in section 9 of the Wills Act of 1837 which a statute of general application in Nigeria.

WHY YOU NEED TO MAKE YOUR WILL

It is important for anybody above the age of 40 to consider writing a will for the following reasons:

Reason # 1: Your Children

First and foremost, think about your kids. You’ve made a lifelong commitment to love and nurture them, but you can only carry out your desires on this side of the grave. If you haven’t made provision for their guardianship upon your death, then the courts and the law will make that decision for you. Do you want the determination of your children’s care and training entrusted to a faceless legal system? If not, then for no other reason write a will so that you can be the one to decide who will best raise and love your children when you aren’t around to do it yourself.

 Reason # 2: Your Assets

Second, you need to know that without a will, your assets will be divided up without any input from you. Do you want to leave the bulk of your money to your uncle in the village instead of your wife in Lagos? If you don’t have an estate plan i.e. then your assets might just end up in the wrong hands. Even if you don’t have big bucks, your assets will still be divided without any regard to your wishes if you don’t have a will. The probate court will use a pre-determined legal formula to decide who gets what and how much they receive.

Reason # 3: The Estate Taxes

Estate taxes will devour at least a sizeable portion of the money you leave behind with a vengeance if you don’t leave a will! Both the federal and state government get at least 10% of your estate if you fail to plan your estate. Though you can’t totally avoid the taxes, you can minimize them by putting directions in your will to grant gifts to individuals and/or to place money in trust funds.

Reason # 4: Reduction of Disputes

The will is the foundation of good estate planning and it’s critical to obtain competent legal help when drafting a will. A will that is poorly drafted or does not dot every legal “i” and cross every legal “t” can be the cause of endless trouble for your survivors.

ESSENTIALS OF A WILL

• A Will must be in writing or typed but not in oral form
• A Will must be signed at the foot or end of the document by the testator or by another person appointed by the testator
• The signature must be affixed in the presence of two or more witnesses
• The witnesses must subscribe to the Will in the presence of the testator.
• By section 8 of the Will Law, a will must not be witnessed by a beneficiary of the Will or his spouse unless the gift to the beneficiary is a charge or direction for the payment of debt

HOW TO MAKE A WILL

• DIY – which means you can write your will yourself however bear it in mind that there may be potential disaster taking this route as there will be nobody to ensure that you have done it properly. Remember that mistakes are easy to make and small errors can have big effect in matters such as this especially if you do not discover until after it is too late for you to set them straight.
• LAWYERS- Another way to write your Will is to have it drafted by a Lawyer. This method has a positive side in the sense that they are trained in Legal Drafting and will also ensure that the will is lodged in the probate registry.

CONCLUSION

• Make a decision to start planning your estate today and such planning includes investing wisely so that you can have something to distribute.
• Get a competent professional who can properly advise you on your estate planning.
• Regularly update and evaluate your plans.