Living Trust (Nigeria)

A Living Trust in Nigeria places assets under the control of a trustee to be held and managed for the benefit of named beneficiaries.

Living trusts in Nigeria are governed by the Trustee Act (Cap T22, Laws of the Federation of Nigeria 2004), which regulates the powers and duties of trustees. State-specific trust laws — such as the Lagos State Trustee Laws — supplement the federal Act. For real property transferred into the trust, the Land Use Act 1978 applies, and any transfer to the trustees requires governor's consent under Section 22 of the Act where the underlying title is a right of occupancy. The Trustee Act confers on trustees the power to invest trust funds in prescribed investments under Section 26, and the court has inherent jurisdiction to supervise the administration of trusts.

A Living Trust achieves several legal and practical objectives. On the settlor's death, assets held in the trust do not form part of the deceased's probate estate — they pass directly to the successor trustee and ultimately to the beneficiaries named in the trust deed, without the delays and costs of the Letters of Administration process at the Probate Division of the High Court. This is particularly valuable in Nigeria where probate proceedings can take 6 to 18 months or longer, especially for contested estates.

In Nigerian commercial practice, family trusts — a variant of the living trust — are widely used by high-net-worth individuals and business families to hold family assets (particularly real property in Lagos, Abuja, and Port Harcourt), protect assets from creditor claims, and support intergenerational wealth transfer while avoiding the public disclosure and delay of probate. Corporate trustees — such as ARM Trustees Limited, First Trustees Nigeria Limited, and UBA Trustees Limited — are licensed by the Securities and Exchange Commission (SEC Nigeria) under the Investments and Securities Act 2007 to act as professional trustees.

The legal framework governing the Living Trust (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Living Trust (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Wills Act 1837 (received English law) sets the foundational requirements.

A Living Trust in Nigeria is needed in estate planning and asset protection situations where the settlor wishes to manage and transfer assets efficiently, avoiding or supplementing the probate process.

A Living Trust is needed when a property owner in Lagos, Abuja, or Port Harcourt wishes to confirm that their real property (held under a Certificate of Occupancy) passes to their chosen beneficiaries after death without the delays and costs of the Letters of Administration process at the State High Court Probate Registry.

A Living Trust is required when a business owner or investor holds a diverse portfolio of assets — shares in Nigerian companies registered with the CAC under CAMA 2020, investment accounts with stockbrokers licensed by the Securities and Exchange Commission (SEC Nigeria), and bank accounts with CBN-licensed commercial banks — and wishes to create a unified legal vehicle for managing and distributing those assets on death or incapacity.

A Living Trust is needed when a Nigerian expatriate or diaspora member wishes to protect assets held in Nigeria from the complexity of an international probate process, where obtaining ancillary grants in Nigeria for a foreign-domiciled estate can be protracted and costly.

A Living Trust is required when parents wish to hold assets for minor children below 18 years of age — who cannot legally hold property or operate bank accounts in their own names under Nigerian law — with the trustees managing the assets until the children reach majority or another specified age.

A Living Trust is needed when a person with a chronic illness, disability, or progressive condition — such as early-stage dementia — wishes to confirm that a trusted person or professional corporate trustee takes over management of their assets smoothly if they become incapacitated, without the need for a court-appointed guardian or committee of the estate under the Mental Health Act 2021. Under Section 1 of the Trustee Act (Cap T22, LFN 2004), trustees appointed under a Living Trust Deed hold legal title to trust assets for the benefit of the named beneficiaries. Section 22 of the Land Use Act 1978 (Cap L5, LFN 2004) requires governor's consent for any transfer of real property into the trust, processed at the relevant State Lands Bureau. Section 26 of the Trustee Act prescribes authorised investments for trustees. Section 189 of the Companies and Allied Matters Act 2020 (CAMA 2020) governs transfer of shares in companies registered with the Corporate Affairs Commission (CAC) to corporate trustees. Section 4 of the Stamp Duties Act (Cap S8, LFN 2004) requires stamping of trust deeds by the Federal Inland Revenue Service (FIRS). Corporate trustees — such as ARM Trustees Limited, First Trustees Nigeria Limited, and UBA Trustees Limited — are licensed by the Securities and Exchange Commission (SEC Nigeria) under Section 38 of the Investments and Securities Act 2007 (ISA 2007). The Nigeria Data Protection Act 2023 (NDPA) administered by the Nigeria Data Protection Commission (NDPC), together with the Nigeria Data Protection Regulation (NDPR) 2019, govern personal data of settlors and beneficiaries. The Supreme Court of Nigeria and State High Courts have supervisory jurisdiction over trust administration.

Parties in Nigeria should prepare a Living Trust (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Living Trust Deed in Nigeria must contain the following essential elements.

Settlor: The full legal name, address, and description of the person creating the trust and transferring assets. The settlor must have legal capacity — be an adult of sound mind under Nigerian law — to create a trust under the Trustee Act (Cap T22, LFN 2004).

Trustees: The full names, addresses, and descriptions of the initial trustee(s) and successor trustee(s). The settlor is commonly named as the initial trustee in a revocable living trust. Where a corporate trustee is used — such as ARM Trustees Limited, First Trustees Nigeria Limited (First Bank of Nigeria subsidiary), or UBA Trustees Limited — the trustee's CAMA 2020 CAC RC number and Securities and Exchange Commission (SEC Nigeria) trustee licence number under the Investments and Securities Act 2007 (ISA 2007) should be stated.

Beneficiaries: The full names, dates of birth (for minors below 18 years), and relationships to the settlor of all primary and contingent beneficiaries. Each beneficiary's entitlement should be specified — fixed share, life interest, or discretionary benefit under the Trustee Act.

Trust Property: A schedule identifying all assets transferred — real property descriptions (with Certificate of Occupancy numbers from the relevant State Land Registry under the Land Use Act 1978, Cap L5, LFN 2004), company share certificates for companies registered with the Corporate Affairs Commission (CAC) under CAMA 2020, bank account details at CBN-licensed institutions, and Nigerian Exchange Group (NGX) investment portfolio details. For real property, a separate Deed of Assignment to the trustees must be executed and governor's consent obtained under Section 22 of the Land Use Act 1978.

Trustee Powers: The powers of the trustees to manage, invest, sell, lease, and deal with trust assets — governed by and extending the Trustee Act (Cap T22, LFN 2004) default powers. Investment powers should authorise investment in CBN-regulated financial instruments, NGX-listed securities, and real property approved by the SEC Nigeria regulatory framework.

Revocation and Amendment: A statement of the settlor's right to revoke or amend the trust during their lifetime — and the procedure for doing so — confirming the trust becomes irrevocable on the settlor's death. Revocation requires a Deed of Revocation stamped under the Stamp Duties Act (Cap S8, LFN 2004) and assessed by the Federal Inland Revenue Service (FIRS).

Succession: Provisions for the appointment of successor trustees on the death, resignation, or incapacity of an existing trustee, and the procedure for formal handover of trust assets under the Trustee Act and the inherent supervisory jurisdiction of the State High Court or Federal High Court.

Governing Law: The laws of the Federal Republic of Nigeria and the applicable state law; jurisdiction in the relevant State High Court or Federal High Court, with appeals to the Court of Appeal and the Supreme Court of Nigeria.

Data Protection: Personal data of the settlor, trustees, and beneficiaries processed in connection with the Living Trust must comply with the Nigeria Data Protection Act 2023 (NDPA) administered by the Nigeria Data Protection Commission (NDPC), and the Nigeria Data Protection Regulation (NDPR) 2019. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.