ADMINISTRATION OF ESTATE

1. Legal Framework for Estate Administration in Nigeria

Intestate and Testate Succession
 Intestate Succession: This occurs when a person dies without leaving a
valid will. In such cases, the distribution of the deceased's estate is governed
by the Intestate Succession Law of the relevant state in Nigeria. The law
outlines the order of beneficiaries, typically starting with the spouse,
children, and then other relatives.
Intestate Succession Applicable Laws:
1. Administration of Estates Law (AEL) 1959 (Southern Nigeria)
2. Probate and Administration Law (PAL) 1959 (Northern Nigeria)
Key Principles:
1. Distribution of estate according to statutory guidelines
2. Priority to spouses, children, and relatives
3. Administration by a court-appointed administrator
Order of Intestate Succession:
1. Spouse (50%) and children (50%)
2. Parents (if no spouse or children)
3. Siblings (if no parents)
4. Grandparents (if no siblings)
5. Uncles and aunts (if no grandparents)
6. Cousins (if no uncles and aunts)
7. State government (if no relatives)
 Testate Succession: This occurs when a person dies leaving a valid will.
The will outlines the deceased's wishes regarding the distribution of their
estate. The executor named in the will is responsible for carrying out the
testator's instructions.
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Testate Succession Applicable Laws:
1. Wills Act 1837
2. Administration of Estates Law (AEL) 1959 (Southern Nigeria)
3. Probate and Administration Law (PAL) 1959 (Northern Nigeria)
Key Principles:
1. Distribution of estate according to the Will
2. Executor appointed by the testator
3. Probate granted by the court
Requirements for a Valid Will:
1. In writing
2. Signed by the testator
3. Witnessed by two persons
4. Free from undue influence or duress
5. Testator must be of sound mind
Types of Wills:
1. Simple Will
2. Joint Will
3. Mutual Will
4. Living Will

Administration of Estates Law and Related Statutes

 Administration of Estates Law: This law provides the legal framework for
the administration of estates in Nigeria. It outlines the procedures for
obtaining probate or letters of administration, the duties of executors and
administrators, and the distribution of the estate.
 Other Relevant Statutes:
o Wills Act: This law governs the validity and execution of wills.
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 o Probate and Administration Act: This law outlines the procedures for
obtaining probate or letters of administration.
o Inheritance Tax Act: This law imposes taxes on inherited property.
2. Processes in Estate Administration
Application for Probate or Letters of Administration
 Probate: This is a legal document issued by a court that confirms the
validity of a will. It grants the executor the authority to administer the estate.
 Letters of Administration: This is a legal document issued by a court that
grants a person the authority to administer an intestate estate.
Here's an overview of the processes involved in estate administration in Nigeria:
 Pre-Administration Stage
1. Obtaining death certificate
2. Locating the Will (if any)
3. Identifying beneficiaries and heirs
4. Notifying relevant parties (e.g., banks, creditors)
 Administration Stage
Testate Estate (With Will)
1. Filing petition for probate
2. Granting of probate
3. Appointment of executor
4. Inventory and valuation of assets
5. Payment of debts and taxes
6. Distribution of assets to beneficiaries
Intestate Estate (Without Will)
1. Filing petition for letters of administration
2. Granting of letters of administration
3. Appointment of administrator
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4. Inventory and valuation of assets
5. Payment of debts and taxes
6. Distribution of assets according to intestate succession laws
 Administrative Processes
1. Advertising for creditors
2. Notifying beneficiaries and heirs
3. Managing and preserving estate assets
4. Paying estate expenses and taxes
5. Preparing estate accounts
6. Distributing assets to beneficiaries
 Court Involvement
1. Granting of probate or letters of administration
2. Resolving disputes among beneficiaries
3. Approving estate accounts
4. Authorizing distribution of assets
 Post-Administration Stage
1. Finalizing estate accounts
2. Distributing remaining assets
3. Obtaining discharge from beneficiaries
4. Closing estate administration
 Timeline
1. Filing petition for probate or letters of administration: 1-3 months
2. Granting of probate or letters of administration: 1-6 months
3. Administration stage: 6-24 months
4. Post-administration stage: 1-6 months

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 Documents Required
1. Death certificate
2. Will (if any)
3. Letters of administration or probate
4. Inventory and valuation report
5. Estate accounts
6. Distribution schedule
 Role of Professionals
1. Lawyers
2. Estate administrators
3. Accountants
4. Valuers
5. Probate registrars
 Challenges and Considerations
1. Disputes among beneficiaries
2. Complex asset structures
3. Tax implications
4. Time-consuming processes
5. Cost of administration
 Best Practices
1. Engage professionals early
2. Communicate with beneficiaries
3. Maintain accurate records
4. Follow court procedures
5. Plan for contingencies

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Duties of Executors and Administrators
Here are the duties of executors and administrators in Nigeria:
 Executors' Duties:
1. Obtain grant of probate from the court.
2. Collect and preserve estate assets.
3. Pay debts, taxes, and expenses.
4. Distribute assets according to the Will.
5. Manage and administer estate until distribution.
6. Provide accounting and reports to beneficiaries.
7. Defend the estate against claims.
 Administrators' Duties:
1. Obtain letters of administration from the court.
2. Collect and preserve estate assets.
3. Pay debts, taxes, and expenses.
4. Distribute assets according to intestate succession laws.
5. Manage and administer estate until distribution.
6. Provide accounting and reports to beneficiaries.
7. Defend the estate against claims.
 Common Duties:
1. Identify and gather estate assets.
2. Value and appraise assets.
3. Pay funeral expenses.
4. Notify beneficiaries and heirs.
5. Manage ongoing business interests.
6. Maintain estate records.
7. File tax returns.

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 Fiduciary Duties:
1. Act in the best interest of beneficiaries.
2. Avoid conflicts of interest.
3. Exercise prudent judgment.
4. Maintain confidentiality.
5. Account for actions and decisions.
 Liabilities:

1. Breach of fiduciary duty.

2. Mismanagement of estate assets.
3. Failure to distribute assets.
4. Non-compliance with court orders.
5. Negligence or gross negligence.
 Powers:
1. Sell or dispose of estate assets.
2. Invest estate funds.
3. Borrow money for estate purposes.
4. Compromise debts.
5. Appoint professionals (e.g., lawyers, accountants).
 Removal and Replacement:
1. Court order.
2. Beneficiaries' agreement.
3. Resignation.
4. Incapacity or death.
 Remuneration:
1. Commission on estate assets (typically 2-5%).
2. Reimbursement of expenses.
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3. Professional fees (e.g., lawyers, accountants).
 Resources:
1. Nigerian Law Reports (NLR).
2. Probate and Administration Law (PAL).
3. Administration of Estates Law (AEL).
4. Nigerian Bar Association (NBA).
5. Chartered Institute of Accountants of Nigeria (ICAN)
Other duties include
 Inventorying Assets: Identifying and valuing the deceased's assets.
 Paying Debts: Settling the deceased's debts and liabilities.
 Distributing the Estate: Distributing the estate to the beneficiaries
according to the will or intestacy laws.
 Filing Tax Returns: Filing necessary tax returns on behalf of the deceased.
 Keeping Records: Maintaining accurate records of all transactions related
to the estate.
3. Disputes in Estate Administration
Common Causes of Disputes
 Family Disputes: Disagreements among family members regarding the
distribution of the estate.
 Contested Wills: Challenges to the validity of a will.
 Valuation Disputes: Disagreements over the value of assets.
 Executor Misconduct: Allegations of mismanagement or fraud by the
executor or administrator.
Role of Mediation and Courts in Dispute Resolution
 Mediation: A voluntary process where a neutral third party helps the parties
reach a mutually agreeable settlement.

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  Court Litigation: If mediation fails, the parties can resort to court litigation
to resolve their disputes.
4. Case Studies on Estate Distribution Challenges
Case Study 1: The Contested Will A wealthy individual dies, leaving a will that
disinherits their eldest child. The disinherited child challenges the will, claiming
undue influence and lack of testamentary capacity.
Case Study 2: The Missing Heir A distant relative emerges after the distribution
of the estate, claiming to be a rightful heir. This leads to legal proceedings to
determine the validity of the claim.
Case Study 3: The Mismanaged Estate An executor misappropriates funds from
the estate for personal use. The beneficiaries file a lawsuit against the executor for
breach of fiduciary duty.
Case Study 4: The International Estate A deceased person owns assets in
multiple countries. The complexities of international law and tax regulations can
lead to significant challenges in administering the estate.
Going deep on the case studies, the below will be considered:
 Case Study 1: Family Feud
Name: Smith Family Estate
Location: Lagos, Nigeria
Deceased: Mr. Smith (father)
Estate Value: N500 million (approximately $1.3 million USD)
Beneficiaries: Mrs. Smith (mother), 3 children (John, Mary, and James)
Challenge: Mrs. Smith contested the Will, claiming undue influence by John, who
was appointed executor.
Outcome: Mediation resolved the dispute, with the court approving a revised
distribution plan.

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 Case Study 2: Multiple Wills
Name: Johnson Family Estate
Location: Abuja, Nigeria
Deceased: Mr. Johnson (father)
Estate Value: N1 billion (approximately $2.6 million USD)
Beneficiaries: Mrs. Johnson (mother), 2 children (Emily and Michael)
Challenge: Multiple Wills were discovered, with conflicting distribution plans.
Outcome: The court determined the validity of the latest Will, and distribution was
made accordingly.
 Case Study 3: Illegitimate Child
Name: Williams Family Estate
Location: Port Harcourt, Nigeria
Deceased: Mr. Williams (father)
Estate Value: N300 million (approximately $780,000 USD)
Beneficiaries: Mrs. Williams (mother), 2 children (David and Sarah)
Challenge: An illegitimate child, Peter, claimed entitlement to a share of the estate.
Outcome: DNA testing confirmed paternity, and Peter received a share of the
estate.
 Case Study 4: Executor Mismanagement
Name: Brown Family Estate
Location: Kano, Nigeria
Deceased: Mr. Brown (father)
Estate Value: N200 million (approximately $520,000 USD)
Beneficiaries: Mrs. Brown (mother), 3 children (Hannah, Rachel, and Benjamin)
Challenge: The executor, Hannah, was accused of mismanaging estate assets.
Outcome: The court removed Hannah as executor and appointed a replacement.

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 Case Study 5: Cultural Dispute
Name: Ademola Family Estate
Location: Ibadan, Nigeria
Deceased: Mr. Ademola (father)
Estate Value: N400 million (approximately $1 million USD)
Beneficiaries: Mrs. Ademola (mother), 4 children (Tunde, Yinka, Bode, and
Funmi)
Challenge: Cultural disputes arose over traditional inheritance practices.
Outcome: Mediation resolved the dispute, incorporating cultural considerations
into the distribution plan.

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