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When it comes to preserving your legacy and safeguarding your family’s future, understanding the distinction between a Will and a Trust is essential. Both are foundational estate planning tools, but they serve different purposes and offer varying levels of control, privacy, and efficiency.
In today’s edition of Trustees Thursday, we break down the key differences between Wills and Trusts to help you determine the best fit for your unique circumstances.
What is a Will?
A Will is a legal document that outlines how your assets should be distributed upon your demise. It allows you to name executors to manage your estate, appoint guardians for minor children, and designate beneficiaries. A Will only becomes effective after death and must go through probate (i.e a public legal process) that can be time-consuming and costly in Nigeria.
Pros of a Will
- Straightforward and relatively affordable to set up
- Allows you to appoint guardians for your children
- Legally recognised by Nigerian probate courts
Cons of a Will
- Subject to probate and Estate taxes
- Can be contested by family members, Business partners, and other third parties
- Once submitted for probate, it becomes a public document
What is a Living Trust?
A Living Trust is a legal arrangement where a Settlor transfers assets to a Trustee, to be held and managed for the benefit of specified Beneficiaries. Unlike a Will, a Living Trust becomes effective during the Settlor’s lifetime and can continue after their passing.
In Nigeria, Private Trusts are gaining popularity among individuals and families who wish to maintain privacy, avoid probate, and ensure structured, long-term support for loved ones.
Pros of a Trust
- Avoids the probate process
- Ensures faster and easier access to assets by beneficiaries
- Maintains confidentiality and privacy
- Facilitates structured wealth transfer (e.g., staggered inheritance, educational or charitable trusts)
- Provides support during incapacitation.
Cons of a Trust
- More complex to establish than a Will
When Should You Consider a Trust Over a Will?
| Situation | Will | Trust |
| You want a simple estate plan | Yes | No |
| You have minor children | Yes | Yes |
| You want to avoid probate | No | Yes |
| You own property in multiple Jurisdictions | No | Yes |
| You want privacy | No | Yes |
| You’re worried about family disputes | No | Yes |
| You may become incapacitated | No | Yes |
Wills and Trusts are not mutually exclusive. In fact, many comprehensive estate plans combine both, using a Will for straightforward matters like guardianship and a Trust for managing complex or sensitive assets.
At Meristem Trustees Limited, we help clients explore both options to create personalised estate plans that reflect their values, goals, and family dynamics.
Thinking about your legacy and not sure where to begin? Reach out to us at [email protected], we’re here to help you make the right decisions for today, tomorrow, and generations to come.
