The best way to preserve wealth, meaning keeping your money from losing its value over time, is not to leave it sitting in cash or a regular savings account, where inflation quietly eats it away. Instead, preserving wealth comes down to four basic steps: 1. Protect Against Inflation Inflation causesRead more
The best way to preserve wealth, meaning keeping your money from losing its value over time, is not to leave it sitting in cash or a regular savings account, where inflation quietly eats it away.
Instead, preserving wealth comes down to four basic steps:
1. Protect Against Inflation
Inflation causes prices to rise every year, making cash worth less. To preserve purchasing power, your money must earn a return that matches or beats the rate of inflation. Real estate, inflation-indexed government bonds, and broad stock market index funds are classic tools for this.
2. Diversify (Don’t Put All Eggs in One Basket)
Spread your money across different types of investments—such as stocks, real estate, government bonds, and cash equivalents. If one sector or market drops, the others help protect your total balance from a total crash.
3. Maintain Emergency Liquidity
Keep 3 to 6 months’ worth of daily living expenses in low-risk, easily accessible places (like Money Market Funds or short-term Treasury Bills). This prevents you from being forced to sell long-term assets at a loss if an unexpected expense comes up.
4. Manage Taxes and Fees
High investment fees and taxes can secretly erode wealth over time. Using tax-free or tax-advantaged accounts (like retirement funds or government securities) and choosing low-fee options helps keep more of your money working for you.
Estate planning in Nigeria is the process of deciding how your money, properties, investments, businesses, and other assets will be managed and distributed during your lifetime and after your death. It is not only for rich people. Anyone who owns a house, land, bank savings, shares, investments, a bRead more
Estate planning in Nigeria is the process of deciding how your money, properties, investments, businesses, and other assets will be managed and distributed during your lifetime and after your death.
It is not only for rich people. Anyone who owns a house, land, bank savings, shares, investments, a business, or other valuable assets can benefit from estate planning.
Main parts of estate planning in Nigeria
Making a Will
A legal document stating who should inherit your assets when you die.
You can name beneficiaries and appoint an executor to administer your estate.
Asset inventory
Listing your properties and investments, such as:
Houses and land
Bank accounts
Shares and bonds
Money market funds
Businesses
Vehicles
Insurance policies
Digital assets
Choosing beneficiaries
Deciding who should receive particular assets—for example, your spouse, children, parents, or other people you choose, subject to applicable Nigerian law.
Business succession planning
If you own a business, planning who will take over or how the business will be transferred when you die or become unable to manage it.
Trusts
In appropriate circumstances, assets can be placed in a trust and managed for beneficiaries according to specified terms.
Joint ownership and nominations
Certain assets may have joint ownership or beneficiary/nominated-person arrangements. These need to be structured carefully because the legal effect varies by asset and institution.
Planning for dependants
You can make arrangements for children and other dependants who may need financial support after your death.
Simple Nigerian example
Suppose you have:
A house worth ₦50 million
Land worth ₦20 million
₦10 million in investments
₦5 million in shares
A business worth ₦15 million
Your estate is potentially worth ₦100 million.
Estate planning would involve deciding who inherits these assets, how they should be transferred, who will manage them, and how to reduce disputes and unnecessary delays.
Why estate planning is important
Without proper planning, your family may face:
Disputes over property
Delays in accessing assets
Problems identifying all your investments
Business succession problems
Legal and administrative costs
Family disagreements over inheritance
In Nigeria, estate planning should be done with attention to applicable succession laws, customary/religious considerations, the location of the property, and the type of asset. A Nigerian solicitor experienced in wills and succession can help you structure it properly.
The best way to preserve wealth, meaning keeping your money from losing its value over time, is not to leave it sitting in cash or a regular savings account, where inflation quietly eats it away. Instead, preserving wealth comes down to four basic steps: 1. Protect Against Inflation Inflation causesRead more
The best way to preserve wealth, meaning keeping your money from losing its value over time, is not to leave it sitting in cash or a regular savings account, where inflation quietly eats it away.
Instead, preserving wealth comes down to four basic steps:
1. Protect Against Inflation
Inflation causes prices to rise every year, making cash worth less. To preserve purchasing power, your money must earn a return that matches or beats the rate of inflation. Real estate, inflation-indexed government bonds, and broad stock market index funds are classic tools for this.
2. Diversify (Don’t Put All Eggs in One Basket)
Spread your money across different types of investments—such as stocks, real estate, government bonds, and cash equivalents. If one sector or market drops, the others help protect your total balance from a total crash.
3. Maintain Emergency Liquidity
Keep 3 to 6 months’ worth of daily living expenses in low-risk, easily accessible places (like Money Market Funds or short-term Treasury Bills). This prevents you from being forced to sell long-term assets at a loss if an unexpected expense comes up.
4. Manage Taxes and Fees
See lessHigh investment fees and taxes can secretly erode wealth over time. Using tax-free or tax-advantaged accounts (like retirement funds or government securities) and choosing low-fee options helps keep more of your money working for you.
Estate planning in Nigeria is the process of deciding how your money, properties, investments, businesses, and other assets will be managed and distributed during your lifetime and after your death. It is not only for rich people. Anyone who owns a house, land, bank savings, shares, investments, a bRead more
Estate planning in Nigeria is the process of deciding how your money, properties, investments, businesses, and other assets will be managed and distributed during your lifetime and after your death.
See lessIt is not only for rich people. Anyone who owns a house, land, bank savings, shares, investments, a business, or other valuable assets can benefit from estate planning.
Main parts of estate planning in Nigeria
Making a Will
A legal document stating who should inherit your assets when you die.
You can name beneficiaries and appoint an executor to administer your estate.
Asset inventory
Listing your properties and investments, such as:
Houses and land
Bank accounts
Shares and bonds
Money market funds
Businesses
Vehicles
Insurance policies
Digital assets
Choosing beneficiaries
Deciding who should receive particular assets—for example, your spouse, children, parents, or other people you choose, subject to applicable Nigerian law.
Business succession planning
If you own a business, planning who will take over or how the business will be transferred when you die or become unable to manage it.
Trusts
In appropriate circumstances, assets can be placed in a trust and managed for beneficiaries according to specified terms.
Joint ownership and nominations
Certain assets may have joint ownership or beneficiary/nominated-person arrangements. These need to be structured carefully because the legal effect varies by asset and institution.
Planning for dependants
You can make arrangements for children and other dependants who may need financial support after your death.
Simple Nigerian example
Suppose you have:
A house worth ₦50 million
Land worth ₦20 million
₦10 million in investments
₦5 million in shares
A business worth ₦15 million
Your estate is potentially worth ₦100 million.
Estate planning would involve deciding who inherits these assets, how they should be transferred, who will manage them, and how to reduce disputes and unnecessary delays.
Why estate planning is important
Without proper planning, your family may face:
Disputes over property
Delays in accessing assets
Problems identifying all your investments
Business succession problems
Legal and administrative costs
Family disagreements over inheritance
In Nigeria, estate planning should be done with attention to applicable succession laws, customary/religious considerations, the location of the property, and the type of asset. A Nigerian solicitor experienced in wills and succession can help you structure it properly.