Inheritance battles make up some of the most dramatic Nollywood movies — a good example is the 2019 Chief Daddy. In reality, however, these battles can be painful and emotionally intense for loved ones of a deceased having to endure ugly family disputes, and extended court contests while healing from their loss. This is why inheritance planning is an important aspect of your finances, especially if you are a high net-worth individual with a large and complicated estate. In this piece, we highlight the crucial role inheritance planning plays in your finances and how you can set up a plan today.
What is Inheritance Planning? Is it Different from a will?
Inheritance planning is a financial strategy prepared by an individual to guide the transfer of their assets to a next of kin after death. Although a will is a foundational document in an inheritance plan, there are more aspects to consider in your inheritance planning. For example, a part of your inheritance plan can include setting up a trust and appointing guardians for your minor children, designating beneficiaries for financial accounts like life insurance policies, as well as other matters that can’t be addressed in a will.
Importance of Inheritance Planning
An Inheritance plan is crucial in helping you set your affairs in order and ensure that your hard-earned assets are transferred to the right hands in the event of death or unexpected incapacitation. Here are the top reasons for you to set up an inheritance plan as early as possible:
- Eliminate conflicts and strained relationships in your family
- Protect the future of your young children
- Sustain generational wealth
- Orderly business succession
Getting Started with Inheritance Planning
Inheritance planning begins with carefully choosing who your heirs will be, what you wish to transfer to each beneficiary and how or when you want each to receive the allocated asset. Here is a checklist to follow is setting up an inheritance plan.
- Draft a will
- Set up a trust
- Appoint and draft a financial power of attorney form
- Choose beneficiaries for your Insurance policies
- Consider taxes and consult a financial advisor
Inheritance Planning with FBNQuest
From estate administration to inheritance planning, FBNQuest is committed to helping clients preserve generational wealth and ensure a smooth transfer of their assets to their loved ones. Our estate planning and advisory services include robust will-writing solutions, executorship services, and trust administration. Our clients have access to the most experienced financial and legal professionals in estate administration.
Plan for the next generation with FBNQuest inheritance and estate planning solutions. Visit https://questmb.com/trustees/solutions/private-trust/..