A Multi-Generational Wealth Plan

At Fiduciary Services Limited, we are driven by our purpose to provide solutions to our clients leveraging on our experience, extensive network and insights in multi-jurisdictional wealth and estate planning.

We assist our Muslim clients to plan their estate during their lifetime and upon death under Shariah law, applying its principles. To illustrate this, we use a case study.

The Client

The client is a well-established Nigerian family with significant assets. They have significant investments in multiple jurisdictions. The Patriarch is deeply committed to ensuring that his wealth is managed and transferred to his heirs in accordance with Sharia principles.

Matters Arising

There was a need for an estate plan that will be recognized by the law in Nigeria and in other jurisdictions where they had assets.

The issues can be broken down into:

• What structure would comply with Sharia and Islamic inheritance laws (Faraid) in Nigeria?
• Can the same structure be used for the properties in other jurisdictions or would there be a need for another structure?

The Solution

To address the issues, a comprehensive estate plan was developed for the family after consultation with our team. This involved multiple steps and the creation of a multi-jurisdictional structure:

1. Significant time and energy was devoted to the heirs; communicating, clarifying, and seeking collective agreement and harmony on purpose and vision for the family’s assets that remains beneficial for the collective as against being individualistic focused.
2. An entity was set up to hold and manage the family assets in Nigeria with shareholding and beneficial interests aligned with Sharia principles.
3. The distributions to be made from income accruing from the assets were earmarked with clear allocation and share for each heir.
4. To manage and protect the family’s international assets, an offshore structure in compliance with Sharia principles was established.

The Outcome

The family successfully set up an estate plan that adhered to Sharia principles, respecting the Islamic laws of inheritance.

Providing clarity and a transparent process helped articulate a shared purpose, prevent potential disputes among heirs, while fostering family harmony. The estate plan as envisioned protects and preserves the family’s assets for all beneficiaries.