If you have spent years building assets, whether that is property, a business, savings, intellectual property, or a brand, the question of how to protect and pass on what you have built is one of the most important legal decisions you will ever make. In Nigeria, a trust is one of the most powerful instruments available for doing exactly that. Yet most Nigerians have never set one up, and many have never been given a clear explanation of what a trust actually is, how it works under Nigerian law, and what the process of establishing one involves in practice.

This guide answers those questions directly. And if by the end of it you are ready to act, Cardinal Counsel is ready to help you do exactly that.

What Is a Trust?

A trust is a legal arrangement in which one person, called the settlor, transfers ownership of specified assets to another person or institution, called the trustee, to hold and manage those assets for the benefit of named individuals or a defined class of people, called the beneficiaries. The trustee does not own the assets for their own benefit. They hold them on behalf of the beneficiaries, according to terms set out in a legal document called a trust deed.

The simplest way to understand it is this: you are separating the legal ownership of your assets from the benefit of those assets. The trustee holds the legal title. The beneficiaries enjoy the benefit. And you, as the settlor, determine the rules that govern how that happens.

Why Set Up a Trust in Nigeria?

• A will tells people what you want to happen after you die. A trust makes it happen, on your terms, with far greater control, speed, and privacy than a will alone can provide.
• A trust avoids probate. When someone dies with only a will, the estate must pass through the Nigerian probate process before any assets can be distributed. This can take months or years, it is public, and it is expensive. Assets held in a properly constituted trust pass to beneficiaries without going through probate at all.
• A trust protects your assets during your lifetime. Unlike a will, a living trust takes effect the moment it is established. Your assets are protected from the moment the trust is constituted, not just after death. In the event of incapacity, the trustee continues managing the assets without any gap in oversight or control.
• A trust provides for beneficiaries over time. Rather than distributing assets in a lump sum, a trust can be structured to release funds at specific ages, milestones, or intervals, or at the trustee’s discretion based on the beneficiary’s needs. This is particularly valuable where beneficiaries include minor children, young adults who are not yet ready to manage significant wealth, or individuals with special needs.
• A trust protects business continuity. For business owners, a trust can hold shares or business interests in a way that ensures the business continues operating smoothly regardless of what happens to the founder. It is one of the most effective succession planning tools available to Nigerian entrepreneurs.
• A trust keeps your affairs private. Unlike a will, which enters the public record through probate, the terms of a trust are private. Only the parties to the arrangement need to know what it contains.

Types of Trusts Available Under Nigerian Law

• Nigerian trust law, rooted in the Trustees Act and developed through case law, recognises several categories of trust, each suited to different objectives.
• A living trust, also called an inter vivos trust, is established and takes effect during the settlor’s lifetime. It is the most flexible and commonly used form of trust for asset protection and succession planning.
• A testamentary trust is created through a will and only comes into effect on the death of the settlor. It passes through probate as part of the estate but then operates as a trust for the benefit of named beneficiaries, most commonly minor children or other dependants.
• A discretionary trust gives the trustee genuine discretion over how and when to distribute assets among a class of beneficiaries. This is particularly useful where the settlor wants to provide for a family without locking in fixed shares, allowing the trustee to respond to changing circumstances over time.
• A charitable trust is established for a charitable purpose rather than for named individuals. It is the legal foundation for many foundations and philanthropic structures in Nigeria.
• A special needs trust is designed to provide for a beneficiary with a disability or vulnerability in a way that protects their long-term interests without affecting any support or entitlements they may be eligible to receive.

The Problem With Individual Trustees

Many Nigerians who do set up trusts make the same mistake: they appoint a family member or friend as trustee. The intention is good but the risks are real. Individual trustees die. They fall out with beneficiaries. They lack the legal and financial expertise to administer a trust properly. They may face personal financial difficulties that create conflicts of interest. And when an individual trustee fails, the beneficiaries have limited practical recourse.

We do not simply draft your trust documents and hand them to you. We sit in the trustee seat alongside you, taking on the legal responsibilities of trusteeship and managing the administration of your trust for as long as it exists. This means your beneficiaries have a professional, accountable institution standing behind every decision made in the administration of their trust, not an individual whose circumstances and availability may change over time.

What We Offer: A Complete Trust Service

Cardinal Counsel provide a genuinely end-to-end trust service. There is no need to engage one firm to draft your documents and another to act as trustee. We do everything under one roof.

We begin with a detailed consultation to understand your assets, your family or business situation, and your objectives. From that conversation we advise on the appropriate trust structure and draft a trust deed that precisely reflects your wishes and is enforceable under Nigerian law.

Once the trust is established, Cardinal Counsel Nominee Limited steps into the role of corporate trustee. We manage the ongoing administration of the trust, including asset oversight, distribution decisions, record-keeping, beneficiary communication, and compliance with the terms of the deed and applicable law. Where the trust holds business interests, property, or other active assets, we provide the oversight and governance that those assets require.

We review the trust periodically to ensure it continues to reflect your circumstances and objectives as life changes. And where a trust needs to be varied, extended, or wound up, we manage that process carefully and in the interests of all beneficiaries.

How to Set Up a Trust With Cardinal Counsel: The Process

The process of establishing a trust through Cardinal Counsel is straightforward because we manage every step of it.

The first step is a consultation. We meet with you to understand your assets, your family or business structure, your objectives, and any specific concerns you have. This conversation is the foundation of everything that follows.

The second step is structuring. Based on the consultation, we advise on the most appropriate type of trust for your situation and begin designing the structure. This includes identifying the trust property, defining the class of beneficiaries, agreeing on the trustee powers and distribution framework, and addressing any specific provisions you want included.

The third step is drafting. We prepare the trust deed and any ancillary documents required to constitute the trust properly under Nigerian law. Every document is drafted specifically for your circumstances. We do not use templates.

The fourth step is execution and asset transfer. Once the documents are agreed and executed, we manage the process of transferring your assets into the trust. This varies by asset class: real property requires title documentation, shares require register updates, and financial assets require account restructuring. We guide you through each transfer and ensure it is properly completed.

The fifth step is ongoing administration. From the moment the trust is constituted, Cardinal Counsel Nominee Limited takes on its role as corporate trustee. The administration of your trust becomes our responsibility, managed professionally and in strict accordance with the trust deed and your instructions.

Who Should Consider Setting Up a Trust?

A trust is not only for the very wealthy. Anyone with assets they want to protect and pass on in an orderly way can benefit from a trust structure. That said, there are certain situations where the case for a trust is particularly compelling.

Parents with young children should consider a trust to ensure that if they die before their children are adults, their assets are managed properly and distributed at the right time rather than handed over in a lump sum to a minor or passed through a contested probate process.

Business owners and entrepreneurs should consider a trust to hold their business interests and ensure that their company can continue operating and transfer to the right hands without legal disruption.

Creative professionals and brand owners should consider a trust to protect intellectual property, trademarks, and brand assets that have commercial value beyond their own lifetime.

High net worth individuals and families with diversified asset portfolios should consider a trust for the privacy, the probate avoidance, and the multigenerational planning it enables.

Anyone who wants to ensure that a vulnerable family member, including a person with a disability or special need, is properly provided for over the long term should consider a special needs trust.

How Much Does It Cost?

The cost of establishing a trust through Cardinal Counsel depends on the complexity of the structure and the nature of the assets involved. What is certain is that the cost of getting it right at the outset is a fraction of the cost of resolving a contested estate, administering a complex probate, or unwinding a trust that was poorly constituted. We are transparent about our fees from the first conversation, and we structure our engagements so that the value delivered is clear.

Contact Cardinal Counsel

Cardinal Counsel and Cardinal Counsel Nominee Limited offer Nigerians something that has historically been difficult to find in one place: a law firm that drafts your trust, acts as your corporate trustee, and administers your trust for the long term. We bring legal expertise, institutional accountability, and a genuine understanding of the assets and families we are protecting.

If you are ready to set up a trust in Nigeria, or if you want to understand whether a trust is the right structure for your situation, we would welcome the opportunity to speak with you.

Contact us today for a consultation.

Email: info@cardinalcounsel.co
Phone: +234 (0) 90 5262 8465
Website: www.cardinalcounsel.co
Address: Suite D14, Adeniran Ogunsanya Mall, Inside Shoprite Complex, 87 Adeniran Ogunsanya Street, Surulere, Lagos, Nigeria.