In Nigeria, we value preserving heritage and passing down legacy, yet many Nigerians shy away from owning a will. Far from popular misconception, owning a will doesn't imply dying soon.
Like with your pension account, a will is a smart precaution and perhaps an investment that prepares you for the inevitability of death when it eventually happens. If you own a pension account or any valuable asset, then you should consider setting up a will.
In this article, you’ll learn more reasons why you should create your will with a step-by-step guide that can simplify the process.
What is a will?
A will is a legally binding document that outlines how a person wants their property, savings, investments, or personal belongings distributed in the case of death. Everyone with valuables should have a will because it ensures that assets are distributed according to your wishes, providing peace of mind for both you and your loved ones.
In pensions, a will comes in handy when a death benefit payment has to be made. Only a named beneficiary(ies) receives the rest of your pension savings on your behalf if you are unable to for whatever reason.
Who Should Own a Will?
While many people think of wills as something only the wealthy or elderly need, the truth is that almost everyone can benefit from having a will. Therefore, you should own a will if you;
Are a parent and you have children.
Own assets such as property, savings, investments, or personal belongings, regardless of their value.
Own and run a business.
Are approaching retirement.
Have a complex family structure with stepchildren or non-traditional family dynamics.
How Does Having a Will Benefit You?
If you find yourself in any of the above categories of people who should own a will, you may wonder why. Well, here’s how owning a will could benefit you.
Control over Asset Distribution
One of the primary benefits of having a will is that it gives you control over how your assets are divided. Without a will, your valuables will be distributed according to Nigeria’s intestacy laws, which may not align with your preferences.
This is especially true if you have certain family members or close friends you wish to support financially or charitable organizations you want to contribute to.
Minimize family disputes
A clearly defined will that outlines your intentions can minimize family conflicts that may result from asset sharing. It prevents misunderstandings and ensures that everyone involved respects your wishes even in your absence.
Protect Your Business and Investments
If you own a business, a will ensures continuity. Your will outlines what happens to your shares or who controls the company in your absence. Here, you also have the flexibility to specify who should take over the business, especially if it is family-owned.
How to Set Up Your Will in Nigeria
Setting up a will may seem like a complex process, but it is actually straightforward. Here’s how you can set up a valid will in Nigeria:
Create a List of Your Assets
The first step is to take inventory of all your assets. What valuables do you own that are worth passing on to others? This may include real estate, bank accounts, investments, pensions, business interests, and personal belongings.
Once you have an updated inventory of your assets, you better understand what you’ll be passing on without missing anything important.
Decide Beneficiaries
Who would you like to inherit the assets in your inventory? The ideal beneficiaries may include family members, friends, charitable organizations, or even other businesses.
Appoint an Executor or Legal Assistant
While it’s possible to write a will yourself, we recommend consulting a lawyer who specializes in wills. They will ensure your will is legally valid and complies with Nigerian law. These professionals can also help you draft your will in a way that minimizes the likelihood of disputes.
On the other hand, an executor is the person responsible for carrying out your will. Your executor will manage your assets, ensure your wishes are followed, and handle all legal and financial obligations. It's best to choose a trustworthy lawyer or executor capable of managing these responsibilities.
Sign and Witness the Will
For a will to be valid in Nigeria, it must be signed by the testator (the person making the will) in the presence of at least two witnesses who are not beneficiaries of the will. These witnesses must also sign the will to confirm its validity. This formal procedure ensures the will can stand up in court if it is contested.
Store the Will but Update Regularly
Now that your will is completed, store it in a safe place where it can be easily accessed. You can keep it with a trusted person, your lawyer, or at a probate registry. Also, ensure that your executor knows where to find the will when the time comes.
Life changes like marriage, childbirth, or new asset acquisition can also affect your will. It’s important to review and update your will regularly to ensure it accurately reflects your current level.
Conclusion
As a pensions company dedicated to helping you secure a stable financial future, we emphasize the importance of planning. Delaying your will can leave your loved ones unprotected, both financially and emotionally.
And even if you think you have very few assets, your pension, life insurance, savings, and personal belongings must be managed when the inevitable happens.
If you need more guidance, contact our team of pensions professionals at 09087448661 or visit www.oakpensions.com to get started.
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