How Do I Structure Property Investment in Lekki as an Estate Planning Tool?
Introduction
In Nigeria today, property investment has evolved beyond the traditional concept of buying land or buildings for resale or rent. It has become one of the most strategic tools for wealth preservation, intergenerational transfer, and estate planning. Among all major real estate destinations in the country, Lekki in Lagos State stands out as the most desirable hub for property investors—especially those thinking long-term about family wealth, legacy, and security.
Lekki is home to some of the most valuable properties in Nigeria, ranging from luxury waterfront estates and gated communities to serviced apartments and commercial complexes. For investors, the attraction of Lekki lies not only in its growing economic value but also in its potential as a strategic estate planning instrument.
Estate planning refers to the process of organizing your assets—especially real estate—in a way that ensures smooth management and transfer to your loved ones when you are no longer around. Structuring property investment in Lekki as an estate planning tool involves using legal, financial, and managerial strategies to protect ownership, avoid family disputes, minimize taxes, and ensure that your beneficiaries receive your assets efficiently.
This comprehensive guide explains how to structure property investment in Lekki to serve as an effective estate planning tool, discussing applicable laws, property ownership structures, legal documentation, and financial implications. It includes a practical case study and a Frequently Asked Questions section to provide clarity for investors, property owners, and families—both in Nigeria and in the diaspora.
Understanding Estate Planning in the Nigerian Context
Estate planning is not limited to the wealthy. It is a crucial process for anyone who owns assets—land, houses, businesses, or bank investments—and desires to control how those assets are managed or distributed after death.
In Nigeria, estate planning typically involves a combination of legal documents and investment structures, such as:
Wills
Trusts
Deeds of Gift
Powers of Attorney
Property-holding companies
Joint ownership arrangements
Insurance-backed estate protection
When properly structured, your property investment in Lekki can serve as the foundation of your estate plan, ensuring that your family’s wealth continues to grow and remains protected from legal disputes or third-party interference.
For example, rather than buying a property solely in your personal name, you can register ownership under a trust, company, or family foundation—depending on your estate objectives. These structures determine how your property will be managed and inherited.
Why Lekki Is Ideal for Property-Based Estate Planning
Lekki is a prime choice for estate planning for several reasons:
Appreciation Value: Lekki’s property value continues to rise due to infrastructure development and its proximity to Victoria Island, Ikoyi, and the Lekki Free Trade Zone.
Secure Land Titles: Many Lekki properties have registered titles such as Certificate of Occupancy, Governor’s Consent, and Deed of Assignment, making legal documentation easier.
Modern Developments: Gated estates, smart homes, and serviced apartments offer manageable investment options for estate planning.
Diaspora Appeal: Nigerians abroad often buy properties in Lekki as part of their long-term family estate plans.
Using Lekki property for estate planning ensures that your investments remain stable, traceable, and transferable across generations.
Legal Framework Governing Property Ownership and Estate Planning in Lagos
The major laws governing property and estate planning in Lagos State include:
The Land Use Act (1978)
The Property and Conveyancing Law of Western Nigeria (applicable in Lagos)
The Administration of Estates Law of Lagos State
The Wills Law of Lagos State (2015)
The Trustees Law
Companies and Allied Matters Act (CAMA 2020)
Stamp Duties Act
Capital Gains Tax Act
Understanding these laws is critical when structuring your property investments. Each law defines ownership rights, inheritance procedures, and tax obligations. For example, the Land Use Act vests all land in the Governor, but individuals may hold land rights through certificates of occupancy. Similarly, CAMA allows for the creation of property-holding companies that serve as legal owners of family assets.
Ownership Structures for Property Investment in Lekki
When you purchase property in Lekki, the way you register ownership will determine how it functions in your estate plan. Here are the most effective ownership structures to consider:
1. Individual Ownership
This is the simplest form of ownership—property registered solely in your name. While easy to execute, it can cause complications upon death, as the property may be subject to probate or intestate succession.
For example, if a property owner in Lekki dies without a will, the property will be distributed under the Administration of Estates Law, often causing delays and disputes.
2. Joint Ownership
This involves owning property with another person—such as a spouse or child. There are two main types:
Joint Tenancy – where both parties have equal ownership, and upon one’s death, the survivor automatically inherits the deceased’s share (right of survivorship).
Tenancy in Common – where each party owns a distinct share, which can be passed to heirs through a will.
Joint ownership is particularly effective for spouses or business partners seeking seamless transfer without lengthy probate.
3. Family Ownership
Families can own properties jointly under a family name or lineage. However, this system may cause internal disputes unless guided by a formal family constitution or trust arrangement.
4. Company Ownership
Creating a property-holding company is one of the most effective estate planning structures. The company becomes the legal owner of the Lekki property, and you (the investor) hold shares in the company.
Upon death, your shares—not the property—are transferred to your heirs. This method:
Avoids probate delays
Simplifies transfer of ownership
Offers tax advantages
Ensures business continuity
Many wealthy Nigerian families (such as the Otedolas and Dangotes) use this model to protect their assets.
5. Trust Ownership
A trust allows you to appoint trustees to hold and manage your property for the benefit of your beneficiaries. For example, you can create a Family Property Trust for your Lekki investments, where the trustees ensure that rent, sales, or management proceeds benefit your children or spouse according to your instructions.
Setting Up a Property-Holding Company in Lekki
A property-holding company is established under the Companies and Allied Matters Act (CAMA 2020). The process involves:
Registering a private limited company with the Corporate Affairs Commission (CAC).
Including real estate investment and management as part of the objects clause.
Acquiring the Lekki property in the company’s name.
Holding shares in the company as the owner or family representative.
For example, Chaman Holdings Ltd. could be established to own multiple properties in Lekki Phase 1 and Chevron Drive. Each family member can hold shares representing their interest in the estate. Upon your death, ownership automatically transfers to your heirs without needing probate, since shares can be reallocated based on the company’s shareholding structure.
Using Trusts to Structure Lekki Property for Estate Planning
Trusts are among the most powerful estate planning tools available to Nigerian property owners. A trust is a legal arrangement where you (the settlor) transfer property to trustees, who manage it for the benefit of your chosen beneficiaries.
Trusts can be:
Revocable Trusts: You can amend or cancel during your lifetime.
Irrevocable Trusts: Permanent arrangements that cannot be changed without consent.
Trusts are beneficial because they:
Avoid public probate processes.
Protect minors and dependents.
Provide professional management of assets.
Prevent interference by extended family.
For instance, a UK-based Nigerian investor who owns luxury apartments in Lekki may set up a Family Property Trust in Nigeria. The trustees—possibly including a law firm or bank—would manage the assets and remit income to the family as specified in the trust deed.
Deed of Gift as a Property Transfer Strategy
A Deed of Gift allows you to transfer property to a family member or loved one during your lifetime. It ensures that the beneficiary receives ownership immediately, thus bypassing probate.
However, a Deed of Gift must be:
Voluntarily made without coercion.
Properly executed and registered at the Land Registry.
Signed and witnessed according to Lagos State property laws.
While useful, a Deed of Gift should be drafted with care to avoid unintended tax liabilities or disputes.
Combining Property Investment with Wills
Even when you structure property investment through companies or trusts, having a will remains essential. A will complements your investment structure by:
Specifying who inherits what.
Appointing executors to oversee estate management.
Reducing family disputes.
Ensuring compliance with the Lagos Wills Law.
A properly drafted will for Lekki property must include the full property description, location, survey details, and title documents. It must also align with existing ownership structures to avoid contradictions.
Benefits of Structuring Property Investment as Estate Planning
Structuring property investment in Lekki for estate planning provides multiple benefits:
Protection of family wealth against third-party claims.
Avoidance of probate delays through corporate or trust ownership.
Tax efficiency, as holding companies may offer reduced liabilities.
Continuity of management, ensuring rent and maintenance continue smoothly.
Asset diversification, allowing distribution of real estate income among heirs.
Privacy, since trust arrangements are confidential.
Proper structuring turns your Lekki property portfolio into a sustainable wealth preservation instrument rather than a source of family conflict.
Common Mistakes in Property-Based Estate Planning
Many investors fail to structure their property holdings properly due to the following errors:
Buying property in unverified names or informal family arrangements.
Failure to register title documents with the Lagos State Land Registry.
Ignoring succession documentation such as wills or trust deeds.
Mixing personal and business property ownership.
Failing to pay statutory taxes and stamp duties.
Assuming verbal promises are legally binding.
Each of these mistakes can lead to loss of property, family disputes, or prolonged legal battles in the Lagos High Court.
Case Study: Estate Planning with a Lekki Property Portfolio
Mrs. Adeyemi, a 58-year-old businesswoman living in the U.S., owned three properties in Lekki: a duplex in Ikate, an apartment in Chevron Drive, and a plot in Ajah. Initially, she bought all properties in her name. After attending an estate planning seminar, she consulted a property lawyer in Ikeja, who advised her to restructure her portfolio.
She established a holding company, Adeyemi Real Estate Ltd, and transferred ownership of all her properties to the company through Deeds of Assignment. Her three children were listed as shareholders, and a corporate trustee was appointed to manage operations in case of her death. She also prepared a will detailing her intentions for profit distribution.
When she passed away three years later, there was no family conflict. The properties remained intact, rent collection continued smoothly, and her children received dividends through the company structure. The absence of probate delays saved the family millions in legal costs.
This case demonstrates how proper legal structuring transforms property ownership into a legacy instrument.
Tax Considerations in Structuring Property Investments
Estate planning must account for applicable taxes. The main taxes affecting property investment in Lekki include:
Stamp Duties
Capital Gains Tax
Withholding Tax
Estate Duties (Probate Fees)
Tenement Rate and Land Use Charge
When you transfer property through companies or trusts, you may reduce or defer some taxes. For instance, dividends paid by a holding company to shareholders are generally less taxed than individual property sales. Always consult a tax lawyer to optimize your structure.
Estate Planning for Diaspora Nigerians with Lekki Properties
Diaspora investors must take extra precautions to align their foreign estate planning documents with Nigerian law. A foreign will or trust is not automatically recognized in Nigeria unless properly registered or re-sealed.
Steps for diaspora investors:
Draft a Nigerian-compliant will for Lekki property.
Appoint a local executor or trustee.
Keep copies of title documents in Nigeria.
Avoid leaving properties in the care of unregulated agents.
Regularly review estate structures every 3–5 years.
Chaman Law Firm routinely assists diaspora clients in structuring their property holdings and ensuring compliance with both Nigerian and foreign laws.
How to Legally Transfer Property in Estate Planning
To ensure a smooth transfer of Lekki property to your heirs:
Prepare the relevant deed (Assignment, Gift, or Trust Deed).
Execute and stamp the document.
Register it at the Lagos Land Registry.
Obtain Governor’s Consent (if applicable).
Update ownership details with the Lagos State Land Bureau.
Failure to complete registration renders the transfer invalid, even if the document is signed.
Ensuring Title Perfection in Lekki Property Investment
Before using your property for estate planning, ensure the title is perfected. Title perfection involves:
Executing a valid Deed of Assignment.
Paying stamp duties.
Registering the document at the Lands Registry.
Obtaining Governor’s Consent.
A perfected title ensures the property is legally recognized and transferrable to beneficiaries.
Legal Instruments You Need for Property-Based Estate Planning
Essential documents include:
Will or Codicil
Deed of Assignment
Deed of Gift
Trust Deed
Memorandum and Articles of Association (for companies)
Share Certificates
Power of Attorney
Probate Grant or Letters of Administration
These instruments collectively safeguard your property rights and ensure smooth inheritance processes.
Professional Assistance in Estate Planning
Legal and financial professionals play crucial roles in estate planning. These include:
Property lawyers: for title verification, documentation, and structuring.
Tax consultants: for optimizing liabilities.
Corporate trustees: for managing trust or company-based estates.
Surveyors and valuers: for asset assessment and mapping.
Working with experts ensures compliance, efficiency, and long-term peace of mind.
Challenges in Implementing Estate Plans
Even with good planning, some challenges arise:
Delay in government approvals.
Family resistance or ignorance.
Mismanagement by trustees.
Inflation and changing real estate market conditions.
Tax law amendments.
Periodic legal reviews help update estate plans to meet current realities.
FAQs
1. Why is Lekki considered a strategic location for estate planning?
Because of its high property value, secure documentation, and consistent appreciation rate.
2. Can I transfer my Lekki property to my children through a trust?
Yes. A family trust is one of the safest ways to ensure your children inherit your assets seamlessly.
3. Do I still need a will if I create a property-holding company?
Yes. The will complements your company structure by covering other personal assets and shares.
4. Can diaspora investors create Nigerian property trusts remotely?
Yes, through legal representation and notarized power of attorney.
5. Is Governor’s Consent compulsory for property transfers in Lekki?
Yes, to make the transfer valid and enforceable under Lagos State law.
6. What happens if my property is not registered?
Your ownership may be challenged, and transfer or inheritance could become invalid.
7. What taxes apply to property transfer through a trust or company?
Stamp duties, capital gains tax, and registration fees may apply, though exemptions exist in certain cases.
8. Can I structure multiple properties under one estate plan?
Yes. You can consolidate all Lekki properties into one company or trust.
9. Who should manage my property after my death?
Appoint a professional trustee or executor, ideally a lawyer or financial institution.
10. How often should I review my estate plan?
Every three to five years or after major life events such as marriage, death, or new property acquisition.
Conclusion
Property investment in Lekki is not just a symbol of success—it is an opportunity to secure your family’s financial future through smart estate planning. By structuring your property ownership through trusts, holding companies, or joint ownership arrangements, you can prevent disputes, reduce taxes, and guarantee the smooth transfer of wealth to your heirs.
Whether you are a Lagos resident or a diaspora investor, professional guidance is essential to ensure your Lekki property is properly structured and protected.
Chaman Law Firm specializes in property law, estate planning, trusts, wills, and probate matters in Lagos and Ogun States. Our experienced property lawyers help clients structure their assets, prepare legal documents, and manage estate plans efficiently and securely.
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