• Wednesday, December 06, 2023
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Let’s talk about how death kills wealth transfer

Trusteeship: Fostering generational wealth transfer and economic growth in Nigeria

Understandably, this is perhaps one of the most uncomfortable topics you have read because you don’t want to have a conversation about death. Well, guess what? Nobody does because everyone cringes at its mention, especially in the context of Nigerian culture and religion.

The anxiety around the conversation around death further heightens when you add topics like wealth transfer in the same sentence, as many believe nothing good will come out of death. Many believe death is an eternal loss – nothing more, nothing less.

Indeed, death is an inevitable human reality, therefore, mortality is non-negotiable. In one way or another, every one of us has felt the harrowing experience of a loss of life, be it a family member, a close friend, work colleague, neighbour, or acquaintance, either directly or indirectly.

While it is impossible to get accustomed to death’s cold unpredictability, it is critical to have conversations about it and identify ways to mitigate its devastating aftershocks. For example, the financial vulnerability the dependents are exposed to following the passing of a breadwinner is an experience that can be avoided if the proper wealth transfer measures are in place. So, let’s talk about death and wealth transfer.

When people die, not only is life permanently lost, but they also leave behind bereaved loved ones and dependents who must deal with life’s inanimate exigencies while grieving. It is a very harsh reality that can worsen if the bereaved are left in unfavourable financial situations.

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More so, because the human resource of a dead person is no longer beneficial to their dependents, they are put in especially dire straits after the demise of their loved ones, who also doubled as breadwinners. As if that is not enough, we often hear families engaging in disputes and legal tussles regarding the equitable sharing of a deceased person’s legacies.

This scenario points to the heart-wrenching reality of death when wealth transfer is not proactively framed. So, what is wealth transfer?

In simple terms, it is the transfer of wealth and assets to beneficiaries upon the owner’s death through financial planning strategies that often include wills, life insurance, or trusts in a tax-efficient manner. It is a sure way of enabling the financial protection of your loved ones and dependents even when you can no longer be by their side.

For most people, caring for and protecting their dependents is of topmost priority while they are alive, but they hardly ever make provisions for the same in case of their demise. That oversight can be fatal to the loved one left behind.

Usually, this happens because people are either at a loss as to how to go about protecting their loved ones financially even after they die, or they have a false assumption that they are too young to worry about death. Some also think that wealth transfer is not something to consider as it is an arrangement for only wealthy people.

These assumptions are false because death is not socially, economically, or biologically specific; therefore, wealth transfer should not be. Everyone who is financially responsible for others must prioritize wealth transfer to protect their dependents even after they are no more.

There are many ways to go about wealth transfer, such as estate planning, life insurance, tax-efficient trust funds, or will writing. Getting a life insurance plan will provide the needed support for the beneficiaries entitled to death benefits, ensuring sustainable financial support systems for them should life cast its dark clouds.

Another wealth transfer tool is estate planning. Depending on how many properties you own, you can make a legal arrangement that ensures your assets are managed effectively, and your loved ones earn sustainably through it.

Although there are many negative societal connotations about writing Wills, such as the belief that it is anticipatory of death; this is not true. It is perhaps the most practical way of transferring wealth. A Will is a legal document that expresses a person’s desires for how their assets should be distributed amongst their loved ones and dependents after they die.

A Will is highly effective because it can provide personal specifics such as the continued support for the deceased’s favourite causes, the naming of beneficiaries of assets, and in some cases, funeral instructions. Moreso, Will writing is a sure way of preventing family disputes because it provides who gets what and how much.

Also, contrary to myths about writing Wills, no one is too young or too poor to write one. You must be wondering how to go about writing your Will. To ensure a seamless Will writing experience, you would need the services of a trusted entity that offers a personal or bespoke guide specifically tailored for you to communicate your wealth transfer decisions to your loved ones. This is where Leadway Capital and Trusts Limited comes in.

An affiliate of Leadway Assurance Company Limited, Leadway Capital and Trust provides packages that cover asset channels such as pension accounts, stocks, shares, insurance benefits, bonds, and employee benefits from as low as N10,750.

The understanding that not only is leaving a legacy for your loved ones necessary but also that Will writing, a fundamental tool of financial planning, just like insurance, savings, and investments, is equally crucial. We dare you to consciously plan to work towards leaving your loved ones a legacy and, most importantly, write a Will today.

For more information, please visit https://www.leadwaycapital.com/iwill/ or scan the QR Code at the top right or call the Leadway Assurance Financial Management Experts on 01-2800-70 or email [email protected] for professional advice.

We are also within your reach on WhatsApp via our virtual assistant support on 08129997044 or any of our social media outlets – @Leadway_Capital on Facebook, Instagram, and Twitter. You can also send a DM, and we will revert with all the information you require.