How to Set Up a Property Trust for Your Lagos Investments from Abroad
Introduction
For many Nigerians living abroad, investing in property in Lagos represents more than financial growth — it is about preserving legacy, securing family wealth, and maintaining a tangible connection with home. However, managing and protecting real estate from overseas can be complex. Questions about ownership transfer, inheritance, taxation, and asset security often arise. What happens to your properties if something unexpected occurs? How do you ensure that your children or beneficiaries enjoy the fruits of your hard work without conflict?
The answer lies in a powerful legal instrument known as a Property Trust. A property trust allows you, as the property owner (the settlor), to transfer ownership of your Lagos real estate into a legal arrangement managed by a trustee for the benefit of your chosen beneficiaries. It is the safest way to protect your assets, control distribution, and ensure that your property is managed exactly as you wish — even while you are abroad.
This article explains everything you need to know about setting up a property trust for your Lagos investments from abroad: what it means, how it works under Nigerian law, its benefits, the step-by-step setup process, and how Chaman Law Firm can help you establish one seamlessly.
Understanding the Concept of a Property Trust
A property trust is a legal relationship where one party (the settlor) transfers property to another (the trustee) to hold and manage for the benefit of one or more persons (the beneficiaries). The trustee holds the property title but must act according to the terms of the trust deed and in the best interests of the beneficiaries.
Under Nigerian law, trusts are recognized and enforceable through both common law principles and the Trustee Law of Lagos State. When properly drafted and registered, a property trust provides legal protection against mismanagement, family disputes, and unnecessary taxation.
In essence, a trust separates control from ownership: while the trustee holds the property, the benefits flow to the beneficiaries according to your directives.
Why Diaspora Nigerians Need Property Trusts
Many Nigerians in the diaspora buy properties in Lagos for investment, retirement, or family use. Yet, distance often prevents them from supervising management, paying land charges, or preventing encroachment. A property trust solves these problems by placing the property under professional oversight with clearly defined duties.
Key reasons why diaspora investors should create a trust include:
Continuity of Ownership: The trust ensures your property remains under proper control even if you are absent or deceased.
Protection from Family Disputes: It prevents quarrels or unauthorized sales by relatives after your passing.
Efficient Estate Planning: Your property automatically passes to your beneficiaries without probate delays.
Confidentiality: Unlike wills, trusts are private documents.
Legal and Tax Benefits: Trusts may reduce estate taxes and ensure compliance with Lagos State property regulations.
Professional Management: Trustees can lease, maintain, or develop the property for your benefit.
Legal Framework for Property Trusts in Nigeria
Property trusts in Lagos are guided by several laws, including:
The Trustee Law of Lagos State, Cap T6 Laws of Lagos State 2015.
The Land Use Act 1978, governing land ownership and Governor’s Consent.
The Property and Conveyancing Law (PCL) applicable in southern Nigeria.
The Stamp Duties Act and Land Instruments Registration Law, which regulate document registration.
These laws recognize both express trusts (created by written documents such as a trust deed) and implied trusts (arising by conduct). However, only an express, written, and registered trust deed provides full legal protection and enforceability.
Types of Property Trusts Available to Diaspora Investors
Revocable Living Trust: The settlor retains control and can amend or revoke the trust during their lifetime.
Irrevocable Trust: Once created, the trust cannot be changed without the consent of the beneficiaries or a court order.
Discretionary Trust: The trustee has flexibility to determine how income or benefits are distributed.
Fixed Trust: Beneficiaries and their entitlements are fixed and clearly stated.
Charitable Trust: Created to benefit the public or charitable causes in Nigeria.
Family Property Trust: Established to protect family property and manage inheritance across generations.
Step-by-Step Process for Setting Up a Property Trust from Abroad
Step 1: Engage a Competent Property Lawyer
The first and most critical step is to engage a property lawyer experienced in trust creation and Lagos land law. Chaman Law Firm offers comprehensive legal advisory and documentation services for diaspora clients. Your lawyer will explain the trust structure, draft all documents, and register them with the appropriate authorities.
Step 2: Define the Purpose of the Trust
You must determine the reason for creating the trust. Is it to manage rental income, protect family property, provide for children, or preserve investment for future resale? Clarity of purpose guides the lawyer in drafting suitable terms.
Step 3: Select Your Trustees
Trustees can be individuals or institutions. They must be reliable, financially stable, and legally capable. Many diaspora investors prefer appointing professional trustees — usually lawyers, law firms, or trust companies — to ensure neutrality and accountability.
Your trustee must accept the role in writing, confirming readiness to act in good faith and obey the trust’s terms.
Step 4: Identify Your Beneficiaries
Clearly name who will benefit from the property — spouse, children, siblings, or dependents. You may specify what share or benefit each person receives, or give trustees discretion to manage distribution.
Step 5: Transfer Property into the Trust
For the trust to be valid, ownership must pass from you (the settlor) to the trustee. This is done through a Deed of Transfer or Deed of Assignment registered at the Lagos Lands Registry. The deed states that the trustee now holds the property on trust for the named beneficiaries.
Your lawyer will also apply for Governor’s Consent to validate the transfer, as required by the Land Use Act.
Step 6: Draft and Execute the Trust Deed
The trust deed is the foundation of the arrangement. It must contain:
The names of settlor, trustees, and beneficiaries.
The property description (survey plan, address, title details).
The powers and duties of the trustees.
How income, rent, or sale proceeds are distributed.
Provisions for replacement of trustees.
Duration of the trust and applicable law.
Once signed, the deed is stamped at the Stamp Duties Office and registered at the Lagos State Lands Registry to ensure validity.
Step 7: Manage and Monitor the Trust
The trustee must maintain proper accounts, pay land charges, renew Governor’s Consent when required, and provide periodic reports. As a diaspora settlor, you can receive annual statements and digital copies of receipts through your lawyer’s office.
Step 8: Authentication and Document Dispatch
If you are abroad, the documents can be signed before a Nigerian Embassy or Consulate and couriered to Nigeria for registration. Conversely, certified copies of your registered documents can be sent to you abroad through secure international couriers such as DHL or FedEx.
Roles and Responsibilities of Trustees
Trustees are legally bound to:
Protect and preserve trust property.
Avoid conflicts of interest or misuse of funds.
Maintain accurate records of rent or income.
Render periodic accounts to beneficiaries.
Act according to the trust deed and applicable laws.
Failure to act diligently may attract personal liability, so appointing competent professionals is essential.
Benefits of Setting Up a Property Trust for Lagos Investments
Protection Against Family Disputes: Prevents unauthorized sales or inheritance fights.
Efficient Property Management: Trustees handle rent, maintenance, and taxes.
Automatic Succession: Bypasses probate and court delays upon death.
Legal Ownership Clarity: Trustees hold title under a registered trust deed.
Confidentiality: The trust remains private unless court action is required.
Tax Efficiency: May reduce or defer estate taxes under Nigerian and foreign laws.
Continuity for Minors: Ensures your children’s inheritance is preserved until adulthood.
Peace of Mind: Your properties remain legally protected even while abroad.
Case Study: How a U.K.-Based Nigerian Secured His Lagos Estate through a Property Trust
Mr. Emeka, a Nigerian based in London, owned three properties in Lekki and Magodo. He worried about how his properties would be managed if anything happened to him. Through Chaman Law Firm, he created a family property trust.
The firm drafted a trust deed naming his two children as beneficiaries and the firm as trustee. The properties were transferred into the trust with registered Deeds of Assignment and Governor’s Consent. The firm now manages the rent and remits income quarterly to his U.K. account.
When one property’s tenant defaulted, the trustee initiated legal recovery proceedings without Mr. Emeka needing to travel. His investments remain secure, profitable, and future-proofed — a perfect example of trust in action.
Key Government Agencies Involved
Lagos State Land Bureau, Alausa: Handles Governor’s Consent and title registration.
Lands Registry: Registers Deeds of Assignment and Trust instruments.
Stamp Duties Office: For stamping and assessment of trust deeds.
Office of the Surveyor-General: For survey authentication.
Federal Ministry of Foreign Affairs: Legalization of documents for international use.
Tax Implications and Compliance
Trusts are subject to taxation under the Personal Income Tax Act and must file annual returns if income is generated from rents or sales. Trustees are responsible for withholding and remitting taxes. Your lawyer can coordinate with tax consultants to ensure full compliance.
Additionally, all property within Lagos must comply with annual Land Use Charges, which trustees can pay on your behalf.
How Chaman Law Firm Simplifies the Process
For Nigerians abroad, Chaman Law Firm offers a seamless, end-to-end process:
Consultation via email or video call.
Drafting Power of Attorney and Trust Deed.
Title verification and Governor’s Consent processing.
Registration at Lands Registry and authentication at relevant ministries.
Courier dispatch of registered documents abroad.
Working alongside Chaman Properties, the firm also helps identify profitable properties that can be added to your trust portfolio.
With legal precision and transparency, you can build a lasting real estate legacy from anywhere in the world.
Frequently Asked Questions (FAQs)
1. Can I create a property trust without traveling to Nigeria?
Yes. Through a Power of Attorney, your lawyer can execute and register the trust on your behalf while you sign abroad at the Nigerian Embassy.
2. What type of trust is best for property ownership?
A revocable living trust is ideal if you want flexibility; an irrevocable trust suits those seeking permanent protection from disputes.
3. Can I be both the settlor and a trustee?
Yes, but you should appoint at least one independent trustee for credibility and continuity.
4. Is a property trust different from a will?
Yes. A will takes effect after death, while a trust operates immediately once created and may bypass probate entirely.
5. How much does it cost to set up a property trust in Lagos?
Costs vary based on property value, legal fees, and government charges. Your lawyer will provide a tailored estimate after initial assessment.
6. Can Chaman Law Firm act as a trustee?
Absolutely. The firm provides professional trustee services, property management, and annual reporting for diaspora clients.
7. How long does the process take?
On average, 4–8 weeks depending on documentation, Governor’s Consent, and registration timelines.
Conclusion
Setting up a property trust is one of the smartest legal strategies for Nigerians abroad who own or plan to own real estate in Lagos. It ensures control, continuity, and legal protection while eliminating uncertainty. Instead of worrying about property disputes or mismanagement, you can establish a structure that keeps your investments thriving across generations.
A properly structured trust transforms your Lagos real estate into a lasting legacy — one that outlives you, secures your family, and preserves the integrity of your wealth.
Call to Action
Are you a Nigerian in the diaspora with property in Lagos or planning to invest soon? Do you want to protect your real estate legally, ensure smooth inheritance, and avoid disputes?
Let the experts handle it.