Estate planning, corporate and public trust services company, Coronation Trustees, has said that in an increasingly globalised world, individual ownership, liquid and illiquid assets and fixed property are seldom arranged neatly in one jurisdiction

It said often, when people die, heirs were left to unravel a complex web of ownership in jurisdictions and territories with laws, customs and legislation very different from Nigeria.

Coronation Trustees said in a statement that, “Estate planning allows the full financial services ecosystem to be accessed and deployed in respecting and carrying out a person’s intentions after death. Estate planning also prevents beneficiaries inheriting confusion and costs after a person’s death.

“At its most simple, an estate plan could merely be a standard will. A will is important as, without a will, a deceased’s assets are distributed according to the compulsory succession rules of the country in which the assets reside.”

The statement added, “In Nigeria, this means that the assets are divided equally among the legitimate male and female heirs of the deceased. In many other countries, for example, a spouse is automatically entitled to a quarter of the estate, and children may not be disinherited. Without a Will, clearly stating the deceased intentions, a deceased wishes may well not be respected after death, especially if these intentions are in disagreement with compulsory succession laws.

“A will, for example, is required to go through a probate process. This can be time-consuming and expensive. And, if a will is contested, this may unintentionally saddle intended beneficiaries with extensive legal and administration costs stretching over many years.

“Just as compulsory succession laws differ between countries, so do asset and inheritance taxes. This is where a comprehensive and planned view of a deceased’s entire asset and intention universe becomes relevant.”

The statement said, “In Nigeria, for example, assets in a trust can avoid inheritance tax. If, however, a separate will also exists, this will attract inheritance taxes to these assets as they will then be required to go through a probate process. In this instance, preparing an estate plan well before death would avoid the situation of a will defeating the purpose of a trust.

“Since laws differ between countries, an estate plan is essential in ensuring that what you intend with your assets after death is actually achieved in all the jurisdictions in which your assets reside.

“Once someone has passed away, it is too late to go back and amend a will, create a Trust, establish a Foundation or sell investments or property in other countries.“A professionally constructed estate plan correctly liquidating or allocating every asset in every jurisdiction strictly, and legally, in accordance with the intentions of the deceased is the best guarantee of an effective inheritance process.

An estate plan will also ensure that your heirs don’t spend years in court or suffer the inconvenience and hardship of delayed settlements or hefty legal and administrative costs.