CEO INTERVIEW Stanbic IBTC Trustees educating people to have a will, estate plan – Max-Gbinije
Stanbic IBTC Trustees Limited (SITL) recently launched a campaign to promote its Wills and estate planning offerings tagged Stanbic IBTC Legacee, a reference to intergenerational wealth transfer. Chief Executive of SITL, Binta Max-Gbinije, spoke on the fi
How will you appraise the trusteeship of the financial services industry?
The trusteeship sector in Nigeria is one of the emerging giant sectors of the economy. Over the years, we have seen the emergence of several trustee companies springing up across the country. The need for corporate trustees has been on the rise in many commercial ways which may not be popular to those who aren’t players in the capital market.
Trustees are there where corporate or government bonds are to be issued, where there are public investment funds and schemes to be managed, just to mention but a few. Thus, I dare to say that the trusteeship industry is a fast growing sector in Nigeria.
How does the firm operate the will and estate planning trusteeship in Nigeria?
One easy way to resolve issues of property inheritance would be to engage in a proper estate planning exercise which would require a person to do any of or a combination of the following - write a will, which clearly states his or her decision and intention regarding the management of the assets left behind. Similarly, an individual can set up a trust where all or some of his assets are transferred to a trustee to hold and manage in line with pre-agreed terms contained in a trust deed or any other document. Here, the assets would no longer be in the name or possession of the deceased person but rather with the trustees and as such the property is given the required shield from meddlesome interlopers. There is also inter vivos gift, where a person can transfer his assets to any desired beneficiary in his life time to avoid doubt or arguments in his absence.
How has the firm been convincing people to write wills or plan their estates?
Here, I think information is the key. People have to be told of the need, advantage and importance of writing a will as well as the corresponding consequences of not doing same. When people see the value that a will offers and weigh it against the patent disadvantages, they should then be persuaded to do the needful. In this area, Stanbic IBTC Trustees Limited will continually educate the public and every audience of the need to do the responsible and prudent thing to put in place a will or a suitable estate plan. Eventually, our earnest expectation is that the bias will fade away as more people become more informed. What is the clichéd saying? Be informed so that you are not deformed!
Another challenge of will writing or estate planning is that many consider it elitist, expensive and something for the elderly. Is this a correct assessment?
The statistics is definitely a true reflection of the industry and yes, the reason for this is not far from my last response which is simply, “lack of information”. What everyone needs to know is the fact that while we have many other personal assets like cars, jewelry, clothing and furniture that can easily be inherited without many regulations, there are also assets’ class which cut across all classes of people and can be owned by the rich, the middle class or even the lower class. Examples are bank accounts, stock portfolios, retirement savings accounts and other forms of investments which cannot be transferred in an informal manner. All these need to be handled under a will or letters of administration otherwise dependants of a deceased would not be able to access such asset.
How can one dispel this notion for people to embrace estate planning and will writing?
People need to understand the importance of the general class of assets - bank accounts, stock portfolios, retirement savings accounts and other forms of investments. Perhaps something that will interest them is that there is something called ‘social will’, where their social media accounts and other virtual footprints can outlive them and be willed to someone to manage long after they are gone! Interesting right? Have them contact us for more information!
The process of will writing is said to be cumbersome and costly. Are these concerns addressed by your firm?
In Nigeria, at least in most states of the
federation, the probate tax is 10 per cent. However, regarding the process, it is simple - entails reading of the will after due process, payment of estate fee, marking of the will by witnesses and the signing of the final grant, especially where the will is not in contest.
It is usually the volume of transactions in the court as well as the diligence or otherwise of the executors and officers at the probate office that impacts more on making the process seamless or unwieldy. That is why it is important you choose your executors properly, preferably of course, Stanbic IBTC Trustees!
Effective estate planning requires expert knowledge. Can you speak on how this can be simplified?
With regards to this, the engagement of experts in such fields during the drafting process is most important as what ever can be envisaged would be addressed during the drafting stage of the will to cater for as many foreseeable or unforeseeable circumstances as may arise in the estate administration.
Nigerian businesses often do not outlive their promoters. Do you think this is tied to a lack of proper estate planning?
Succession planning if not properly considered usually is a challenge in all spheres of life. Estate planning, which speaks to intergenerational wealth transfer, can also have an impact on successful businesses if the promoter failed to put in structures in the business which would ensure that the business outlives him or her. A trust is one of the ways to ensure there is business continuity as the trustees would be required to ensure that all the terms as earlier provided in the trust deed as it relates to the business are carried out.
An important concern in estate planning/will writing is the issue of integrity. How does SITL ensure that safety is guaranteed and integrity is protected?
The answer here is simple, it’s a case of conflict of interest, the conflict arises when the lawyer either gets greedy by trying to divert assets owned by his deceased client or when there is connivance with a favoured member of the family. This situation can be resolved by engaging the services of an independent and objective third party for example a corporate executor/trustee who will be professional all the way.
What documents are essential for estate planning?
Basically, an inventory of assets and the evidence of title as well as ownership of such assets.
Why did Stanbic IBTC Trustees Limited divest into wills offerings and the ‘Legacee’ concept?
The notion that the word will connote fear and typically engender an immediate rejection was one of the reasons. The new name “Legacee” more aptly conveys what this action truly means and that is essentially, leaving behind something good to be remembered by after you are gone. It is something to be embraced and or at least acknowledged, not something to be afraid of…