A trust is an arrangement where a person, the settlor, transfers assets to trustees who hold and manage them for the benefit of beneficiaries according to the terms of a trust deed. Trusts are increasingly used in Nigeria for estate planning, asset protection, providing for children and dependants, and philanthropy.
Unlike a will, a trust can take effect during the settlor's lifetime and continue after death without the assets passing through probate. This can provide continuity, privacy and protection against family disputes.
Types of trusts
- Living trusts: created during the settlor's lifetime to hold assets for beneficiaries
- Testamentary trusts: created by a will and taking effect on death
- Discretionary trusts: trustees decide how and when beneficiaries receive benefits
- Education and maintenance trusts: for children and dependants
- Charitable trusts: for philanthropic purposes, sometimes alongside incorporated trustees
- Trusts holding family business shares: to keep control together across generations
Setting up a trust
- Clarifying your objectives and the assets to be placed in trust
- Choosing trustees, which may be individuals, a trust company or both
- Drafting the trust deed, setting out powers, duties, beneficiaries and distribution rules
- Transferring assets to the trustees, including real estate, which may require consent and registration, and shares, which require transfers and filings
- Stamping and, where required, registration of documents
Ongoing administration
Trustees owe duties to manage the trust assets prudently and in the beneficiaries' interests. We advise trustees on their duties, investment powers under applicable trustee laws, record-keeping, distributions and tax.
Related services
Trusts often sit alongside a will, succession planning for family businesses and broader private wealth structuring.
