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FAQs
Wills
Frequently Asked Questions
What is a Will?
A Will is a written instrument/document containing directions/instructions for how the assets of the person making the Will should be divided/distributed upon his/her death.
Who should have a Will?
Every adult should have a Will, regardless of marital status and asset value. It does not matter if you are single, divorced or married, with or without children, with minor or adult children.
What should I remember while drafting a Will?
There are several points to remember, including:
- Keep the wording as plain as possible
- When referring to a person, use their full name and a brief description – for example, my nephew, Tolu Atanacious.
- Avoid using vague or ambiguous terms
- Ensure that you understand each clause in the drafted document and that the Will reflects your wishes
- Make sure your Will always reflects your current situation.
Who should sign the Will?
The Will must be executed by the Testator (male) or Testatrix (female), the person who wrote the Will as well as the witnesses.
What happens to you if you die without a Will?
Dying without a Will is called dying “intestate.” Dying intestate creates additional costs in probating your estate such as the costs and rigors of procuring a Letter of Administration. Dying intestate can also create chaos and confusion among the children, spouses, siblings, or parents of the deceased.
How often should a Will be reviewed?
Your Will should be reviewed every 2 years or less, depending on if you have a major life change such as the birth or adoption of a child, a divorce or marriage, or a significant increase in assets.
Legally, a Will does not take effect until the testator dies and the probate court approves the Will. Prior to death, a competent testator can amend or revoke an existing Will.
Who should prepare a Will?
Drafting a Will involves making decisions requiring professional judgment, which can be obtained only by years of training, experience, and study. Only a practicing lawyer can avoid the innumerable pitfalls and advise you on the course best suited for your situation.
Why choose UTL Trustees?
UTL Trustees has a team of lawyers who are experts in drafting Wills and offering sound advice on Wills. There are several advantages to having UTL Trustees draft your Will but one of the major attractions is that you can also name us as Executors, thus ensuring all your wishes are carried out without any form of partiality.
How can I find out about your Wills Services?
Our staff will be glad to assemble further information for you, analyze your requirements and answer questions not covered here. Please e-mail us at mail@utltrustees.com or call our office at 02-012705306.
Trusts
Frequently Asked Questions
Who is a Trustee?
A Trustee is a Person or institution that oversees and manages a Trust.
The Trustee stands in a fiduciary relationship with respect to the assets/Trust property held on behalf of another (others) called the beneficiary (or beneficiaries).
What is Trust?
A Trust is a legal contract/relationship where the Settlor transfer assets to a legal entity, the Trust, which will be administered by a Trustee (such as UTL Trustees) for the benefit of a beneficiary (which could be yourself or another person).
Trusts are separate legal entities, like companies, whose purpose is to hold and manage assets for you or for the benefit of others.
Will or Trust? Which is best?
Most people need both.
We advise having a discussion with professionals such as UTL Trustees, so that we review your circumstances and guide you on the appropriate structure to adopt for your Estate Plan.
What is a Trust Deed?
A Trust Deed is the document executed between the Settlor (You) and the Trustee and outlines how, when and to whom your assets will be distributed, as per your wishes.
Who are the parties to a Trust?
In all Trust arrangements, there are 3 separate parties to the Trust; namely the Settlor, the Trustee, and the Beneficiary.
- The Settlor is the benefactor i.e., the creator of the Trust, who transfers the assets to the Trustees.
- The Trustee is the one to whom the Settlor transfers the assets to hold in Trust for the beneficiaries. Legal ownership will pass from the Settlor to the Trustees, but beneficial ownership resides in the beneficiary.
- The Beneficiaries are the people who are entitled to use or enjoy the income or assets of the Trust.
What types of assets can you put in a Trust?
- Stocks and Bonds
- Real Estate (including Land)
- Mutual Funds
- Art
- Intellectual property
- Bank Accounts, Safe Deposit boxes
It is important to note however, that the title to the asset that you intend to put into the Trust must be properly passed to the Trustee for the Trust to be properly constituted.
What are your duties as Trustees?
Our duties include to:
- To comply with the terms of the Trust Deed
- To act fairly and maintain objectivity among the beneficiaries
- To ensure that we do not put ourselves in a position where our interests’ conflict with those of the beneficiaries. For example, we will not buy any Trust Property if it was for sale
- To keep accounts and provide information and accounts to the Settlor and/or the beneficiaries upon request
- To take reasonable care in making investments. We will consider the suitability of any investment and the need to diversify.
- To protect Trust Assets
- Ensure proper transfers of title of assets to be transferred into the Trust.
- Maintain detailed records of all assets and transactions.
- Review assets regularly for quality and performance.
- Ensure that payment and distributions are made to genuine Beneficiaries.
- Facilitate final transfer of Trust assets to the Beneficiaries.
Do I have to give up control if I set up a Trust?
No. You do not have to give up control when you create a Trust. You keep as much control as you want. Typically, the creator of a Trust stays in control by retaining the power to do one of the following:
- Withdraw Trust assets
- Change instructions to the Trustee by amending the Trust agreement
- Cancel the Trust all together
Why choose UTL Trustees?
There are several advantages to appointing UTL as Trustee. Unlike other providers of Trust services, our skilled Trust advisors deal exclusively with Trust issues. The solutions our Trust experts provide are never “one size fits all,” but are individually tailored to fit personal needs.
In addition, UTL offers:
- Professional management by trained experts
- Impartiality in making investment decisions and in dealing with beneficiaries
- UTL Trustees’ commitment to placing our clients’ interests first and serving them with integrity, innovation, quality, and hard work
- The confidence that comes from knowing your Trustee is subject to regular audits by external auditors and government regulators (Securities and Exchange Commission)
How can I find out more about your Trust Services?
Our Trust advisors will be glad to assemble further information for you, analyze your trust requirements and answer questions not covered here. Please e-mail us at mail@utltrustees.com or call our office at 02-012705306.
Security Trusteeship
Frequently Asked Questions
What is security trusteeship?
Security trusteeship is a service provided by a trusted third party, known as a security trustee, to manage and safeguard assets on behalf of investors or beneficiaries. These assets can include securities, bonds, or other financial instruments.
What is the role of a security trustee?
A security trustee acts as a fiduciary, ensuring that the terms and conditions of a security agreement are upheld. They hold legal title to the assets on behalf of the beneficiaries, monitor compliance with the security documentation, and enforce the rights of the beneficiaries in the event of default or other specified events.
Who typically uses security trusteeship services?
Security trusteeship services are commonly utilized in structured finance transactions, such as securitizations, bond issuances, project finance, and other complex financial arrangements. Investors, lenders, and issuers may all benefit from the involvement of a security trustee to protect their interests.
What are the benefits of using a security trustee?
- Risk Mitigation: A security trustee helps mitigate risks by ensuring that assets are held securely and managed according to agreed-upon terms.
- Enhanced Credibility: The involvement of a reputable security trustee can enhance the credibility of a transaction, assuring investors and counterparties.
- Conflict Resolution: In the event of disputes or defaults, the security trustee serves as an impartial party to facilitate resolutions and enforce beneficiaries’ rights.
- Expertise and Experience: Security trustees bring specialized expertise and experience in managing complex financial transactions, adding value through their knowledge of legal and regulatory requirements.
How does the security trusteeship process work?
The process typically involves the following steps:
- Appointment: The parties involved in the transaction appoint a security trustee, usually through a formal agreement.
- Asset Transfer: Assets are transferred to the security trustee, who holds legal title on behalf of the beneficiaries.
- Monitoring and Compliance: The security trustee monitors compliance with the terms of the security documentation and takes action as necessary to protect the interests of beneficiaries.
- Enforcement: In the event of default or other specified events, the security trustee may take enforcement actions on behalf of the beneficiaries, such as initiating legal proceedings or exercising rights under the security agreement.
Public Trust
Frequently Asked Questions
What is a bond?
A bond is a long-term debt instrument issued by a borrower for the purpose of raising capital to carry out specified projects by a governmental body or corporate institution.
Who can raise a bond?
Access to the debt capital market is open to both, federal governments, and sub nationals, as well as companies.
What are the requirements for raising a bond?
In order for an Issuer to come into the capital market to raise a bond, the prospect must ensure the following; that their financials are up to date and in good standing, Verified use of proceeds, there is no litigation in existence detrimental to the issue, that they have an investment grade rating and that the possess adequate security in place to ensure the repayment of its investors amongst others. It is advisable to engage the services of experts in that regard.
What other sources of funding are available in the market?
This would depend largely on the objectives of the Issuer such as the tenor, type of security and whether the issue is public or private amongst others. Commercial papers, Bank Loans, Initial Public Offering (IPO), Rights Issue, Private Placement and an Offer for Subscription are also available sources.
What is a Sukuk?
A sukuk is a sharia-compliant debt instrument issued for the purpose of financing specified projects. The holders of the sukuk are paid a profit periodically which are also known as Rentals.
What is a Collective Investment Scheme?
A collective investment scheme is a scheme or arrangement into which investors with similar intentions are invited to invest money or other assets into a portfolio for the benefit of all the participants. A Fund Manager is responsible for the management of the pooled funds.