Experts Urge Structured Islamic Estate Planning to Protect Family Wealth, Legacy

Legal, financial and religious experts have called on Nigerians to adopt structured Islamic estate planning frameworks, warning that reliance on informal arrangements and verbal agreements continues to expose families to disputes, financial losses, and prolonged legal battles.

The call was held this weekend in Abuja at the 8th Annual Islamic Estate Planning Clinic, themed “From Informality to Legacy: Structuring Islamic Wealth Transfer,” organised by The Metropolitan Law Firm in collaboration with First Trustees Ltd and Al-Ameen Trustees Ltd.

Speakers stressed the urgent need for documentation, professional advisory support, and the adoption of modern financial and legal tools to ensure responsible wealth transfer, particularly amid Nigeria’s evolving tax environment and the rise of digital assets.

The managing partner of The Metropolitan Law Firm, Hajia Ummahani Amin, said many Nigerian families still rely on undocumented arrangements that often lead to disputes, mismanagement, and outcomes that contradict the intentions of wealth creators.

“Estate planning allows individuals to organise their affairs before death and ensure their wishes are respected. Leaving assets in the hands of relatives or friends without proper documentation has caused serious problems for many families,” she said.

Amin noted that while Islamic inheritance principles are clearly defined, individuals retain the right to allocate up to one-third of their estate through wills or trusts. She urged Nigerians to adopt structured tools, such as trusts and endowments, to protect beneficiaries and sustain legacies.

She added that Nigeria is increasingly prepared for the realities of digitalisation and emerging tax reforms, noting that proactive planning would help individuals adapt to the changing financial environment.

Keynote speaker and co-chairman of the African Union’s 4th Industrial Revolution Policy Council, Prof. Isa Ali Ibrahim Pantami, emphasised the importance of moving from verbal arrangements to structured, documented, and Sharia-compliant systems.

“The transition from informality to legacy means moving from cultural verbal agreements to formal, documented frameworks,” he said. “Verbal agreements are unreliable and often lead to disputes.”

Pantami, a former minister of Communication and Digital Economy, advocated the use of modern technologies, including blockchain systems, to securely preserve wills and legal agreements, adding that structured wealth management is not only a legal necessity but also a religious responsibility rooted in Islamic teachings.

He further highlighted common challenges, including cultural practices that conflict with Islamic inheritance principles, delayed will-making, and inadequate documentation of property ownership across communities.

Chairperson of the Better Life Programme for the African Rural Woman (BLPARW), Dr Hajiya Aisha Babangida, underscored the need for continuous education and awareness to help families understand available Islamic financial instruments.

She noted that tools such as waqf (endowment), trusts, and Sukuk bonds could support community development, education, and infrastructure if properly understood and utilised.

“Education is key,” she said. “People must understand the available instruments and how structured planning can help families build sustainable legacies while contributing to community growth.”

In the same vein, associate director of First Trustees Ltd, Abimbola Ajinibi, identified cultural misconceptions as a major barrier to estate planning. According to him, many Muslims mistakenly believe that Islamic inheritance rules eliminate the need for wills or structured planning.

“In reality, up to one-third of an estate can be distributed through personal discretion,” he explained. “Failure to plan can lead to intestate estates and probate processes that may cost up to 10 per cent of the estate value.”

Ajinibi also noted that estate planning encompasses more than wills, including trusts, gifts, and powers of attorney designed to ensure seamless wealth transfer.

Speaking on financial governance, Rotimi Obende of First Trustees highlighted the implications of tax reforms effective January 1, 2026. He said trustees and estate administrators are now required to report income generated from estates and trusts.

“While inheritance transfers themselves remain largely unchanged, income earned from estate management must now be reported and taxed,” he explained. “Proper structures ensure that taxes are assessed on net income rather than gross income.”

On her part, Representative of Al-Ameen Trustees, Mutiat Olatunji, emphasised the role of regulated, faith-based trustees in providing Sharia-compliant estate planning and ethical financial governance.

She said professional trusteeship helps ensure transparency, regulatory compliance, and responsible management of wealth for both private beneficiaries and broader community development.

Participants concluded the clinic with a collective call for Nigerians to integrate religious guidance with legal expertise, professional trusteeship, and modern technology to secure their families’ futures.

They emphasised that structured Islamic estate planning remains essential not only for protecting wealth but also for promoting social stability, responsible governance, and intergenerational prosperity.