Estate Planning and Wealth Transfer
What CF6 tests
Estate planning and wealth transfer tests wills, intestacy, trusts, nominations and the orderly transfer of assets.
Core rules
- A valid will requires testamentary capacity, intention, proper execution and witnesses under applicable law; it can be revoked by a later will, marriage or destruction.
- Intestacy rules depend on statute and customary law; a spouse and children may not receive what the client assumes.
- An executor administers the estate; a trustee holds trust property. Probate confirms authority.
- Trusts can provide control, confidentiality and protection, but need funding and clear terms.
- Nominations on life policies or pensions may direct benefits but do not automatically override a will or creditor claims; coordinate them.
- Nigeria has no general federal inheritance tax, but capital gains, stamp duty and administration costs can arise.
Worked example
An estate is 30m; the will leaves 5m to a charity, residue to spouse and children, and names an executor. After debts and administration costs, the executor pays the specific gift first, then distributes residue. Reasoning: specific gifts are identified before residue; if the estate is insufficient, abatement rules apply. The adviser reviews policy nominations to align them with the will.
Traps
Assuming nominations override the will; ignoring customary law; using an unwitnessed will; not reviewing after marriage or births; failing to fund a trust.