WEALTH PRESERVATION AND WEALTH TRANSFER (SERIES FINALE)

Hello,

Wealth preservation and transfer will be the final post on the taking control of your finances as a woman series. I have confirmation that our resource person will do us the honour of writing on wealth preservation and transfer and I am eager to have her point of view but in the meanwhile, here is mine.

Wealth preservation includes all the decisions taken and actions geared towards ensuring acquired or created wealth is not lost. This can be done by reducing investment charges and other charges which deplete your funds, also by investing in extremely low risk instruments and ventures.

Quick reminder, we have examined Basic survival needs of a woman, Saving as a tool in financial planning, Cutting down cost, differentiated between savings and investment while emphasizing that they are not one and the same, wealth creation where we advised you to increase your source of income, in an earlier post series we have suggested you start with education and mentioned that it did not have to cost you (you may wish to see how HERE), wealth management and also talked on what to do when you have fallen off track with financial prudence.

Wealth transfer can mean the passing on of wealth from one to another

In this part of the world, only a few people are concerned with what happens after they are deceased but we all should be (part of me feels that this is partly the reason why Nigeria finds itself in the state she is in right now, people are more concerned with now and are not future focused). 

The Nigerian various traditions prescribe how wealth should be transferred from person to person, it oftentimes is inherited by male children and in some places the first, male son is given the responsibility of continuing with the family legacy.

Transfer of assets is not new practice; people do this at varying stages of life and for varying reasons. We are however going to concern ourselves with transfer of substantial wealth and asset that has to do with relinquishing rights and ownership to another for the purpose of continuity.

Why should you be concerned with how or to whom you transfer wealth?

Everyone dies; we only pray that at the time when we do, we are old enough and have left a legacy to cater for our loved ones, even if we do not, the state (at least Lagos) has laws that will keep for the state ninety percent of your wealth where no will (legal document) has been made so transfer of wealth is not escapable.

Although the traditional practice is to leave wealth for the eldest son at least in the south east part of Nigeria, you need to be aware of whom the ‘right person’ to leave your wealth with is. Successful wealth creation, management, preservation and transfer is wealth that can be seen and traced through generations. Have you wondered why you Mama in the village know Coca cola, Star, Gulder or Schnapps?

Six questions you need to answer before you transfer wealth 
1. Is subject wealth significant to me?
2.What is my aim for transferring wealth?
3. Is this recipient capable of helping me achieve my aim
4. Do I mind my legacy being mismanaged?
5. If answer to question 3 is yes, answer 
6.What are the alternative approaches to achieve my aim of wealth transfer?

ALTERNATIVE APPROACHES TO WEALTH TRANSFER

A lot of people complain that they would want to leave their children business empires but fear that they do not have what it takes to manage such businesses. Some go ahead to leave these empires hoping they learn along the way. In majority of these cases, there is only physical structures to show these business empires ever existed three to five years after. Alternatives exist for you.
1. Use of Trustees
2. Find the most qualified individual to hand over to and leave instructions backed with legal documents to avoid reneging and still ensure wealth gets to the other intended beneficiaries
3. Invest in the interests or activities of the person to receive wealth.
4.Going public

I am sure our resource person will expand on this topic. Feel free to engage me in the comment section. The next series is about work and the workplace (very interesting!). Looking forward to that already (Can’t wait). Join me at the top of the week for that.