When Mr. and Mrs. Adeyemi started their business in the 1990s, all they wanted was a better life for their children.
Through determination and sacrifice, they built a thriving logistics company, several houses across Lagos and Abuja, and solid investments that made them the envy of their community.
But when Mr. Adeyemi suddenly passed on, everything began to fall apart. His children could not agree on who should manage the company. His brothers claimed portions of his estate.
One of his sons — the eldest — believed as “the first son” he was entitled to sell off everything to sustain his extravagant lifestyle. He sold company vehicles, leased out one of the family houses without consent, and ignored the younger children’s school needs.
The widow watched helplessly as what her husband built for three decades was gradually consumed by greed, entitlement, and confusion.
Within three years, the Adeyemi legacy was in ruins.
It wasn’t fraud or bad luck that destroyed their empire — it was the absence of structure.
There was no trust, no continuity plan, and no legal mechanism to protect the family’s collective interest.
The Lesson
Every successful family faces the same silent risk: what happens when the founder is gone?
In a country where family businesses form over 80% of private enterprise, only a small fraction survive into the second generation.
The difference between families that preserve their legacy and those that lose it often comes down to planning — and one of the most powerful tools for that is a Family Trust.
What Is a Family Trust?
A Family Trust is a legal structure that allows a person (the Settlor) to transfer assets to Trustees, who manage those assets for the benefit of family members (the Beneficiaries) according to specific terms.
It separates ownership from benefit: the Trustees hold legal title, but must use and manage the assets only for the family’s welfare, education, and advancement — exactly as the Settlor directs.
Why Every Family Needs One
1. Protection from Disputes and Mismanagement
With a trust, no single individual — not even the eldest child — can unilaterally sell, divert, or misuse family property.
Trustees must act collectively and strictly in accordance with the trust deed.
2. Smooth Business Succession
A trust defines how the family business continues, who manages it, and how profits are distributed — ensuring stability even in crisis.
3. Provision for Minors and Dependants
The trust can fund education, healthcare, and maintenance for children and vulnerable relatives without delay or conflict.
4. Privacy and Continuity
Unlike a will, which becomes public after probate, a trust operates privately and immediately.
5. Tax Efficiency and Asset Preservation
When properly structured, a trust helps reduce estate costs, prevent double taxation, and maintain liquidity.
What Assets Can Go Into a Trust?
a. Real estate and family homes
b. Shares in family or private companies
c. Investment portfolios, bank deposits, and securities
c. Life insurance benefits
d. Intellectual property and royalties
e. Foreign or offshore assets
f. Interest in partnerships
Each asset is properly vested in the Trustees through appropriate legal instruments — Deed of Gift, Deed of Assignment, or Share Transfer Deed — ensuring that ownership is legally transferred and protected.
Who Should Be the Trustees?
Trustees should be individuals or institutions that combine integrity, competence, and neutrality.
Many families adopt a hybrid model:
- One or two family members who understand the family’s needs; and
- A professional or corporate trustee (such as a law firm or trust company) that ensures compliance, accountability, and continuity.
- A Protector can also be appointed to oversee the trustees and ensure the family’s wishes remain respected.
How to Set Up a Family Trust
1. Consult a Qualified Legal Advisor
A lawyer prepares the Trust Deed and ensures compliance with Nigerian law.
2. Define the Purpose and Beneficiaries
Is it for education, business continuity, or general welfare? The trust should reflect clear goals.
3. Appoint Trustees and a Protector
Select individuals or firms with a track record of good governance.
4. Transfer the Assets
Execute and register the necessary transfer instruments to legally vest ownership in the Trustees.
5. Review Regularly
Family and financial circumstances change. Periodic review keeps the trust relevant and effective.
Common Misconceptions
“Trusts are only for billionaires.”
False. Any family with assets or dependants benefits from the certainty a trust provides.
“I’ll lose control if I transfer my assets.”
You can retain reserved powers or act as a co-trustee. A trust ensures control with structure, not chaos.
“A will is enough.”
A will speaks only after death; a trust speaks now and after. It offers continuity where a will cannot.
Conclusion: Legacy Is Planned, Not Assumed
Building wealth is one thing — preserving it is another. A Family Trust ensures that your life’s work remains a blessing, not a burden, to those you love. It prevents reckless heirs from dismantling the foundation you laboured to build. It transforms your values into enduring structure — ensuring your name, business, and legacy live beyond a generation.
