succession Archives - Milton and Cross

What are the Duties of an Employer?

Posted on November 24, 2017 by admin in leadership, rule of law, Small Businesses, succession, transaction advisory, Uncategorized, upscale

An employer is a person or other legal entity that controls and directs the actions of another person, called a worker or employee under an express or implied contract of employment and pays (or is obligated to pay) him or her salary or wages in compensation. The employer has duties specified by the law which he must be cognizant of at all times as the breach of any of these duties may render the employer liable at law in the event of injury or loss to the employee and they include:

The duty to provide work for his employee.
The duty to provide a safe and healthy work environment. where it is not practicable to avoid the presence of hazards, providing adequate personal protective clothing and equipment without any cost to workers
The duty to provide competent co-workers so as to prevent or reduce the possibility of injury as a result of a co worker’s incompetence.
The duty to remunerate employees in accordance with the terms of the contract of employment if the employee arrives for work and can work..
The duty to indemnify employees against liabilities and losses resulting from following his employer’s instructions.
The duty to give employees reasonable opportunity to have their complaints resolved or mitigated.
Where a report is received from an employee about hazards or any injury or harm to health, he must within reasonable time after receiving the reportinvestigate the matter and determine the action, if any, to be taken; and notify the employee about what was decided.

If you are an employer and you feel you need advice on your rights and obligations, please feel free to contact us by email or give us a call at +2348036258312 or +2348188474167.

Should an Employee who was not issued with an Employment letter give a written Notice to Resign?

Posted on November 15, 2017 by admin in Capital, entrepreneurship, investment advisory, Personal Finance, rule of law, Small Businesses, strategy, succession, transaction advisory, Uncategorized, wealth

Amaka started working as an analyst in a commodities brokerage located in Victoria Island. Shortly before her employment, the Human Resources manager had resigned due to a dispute with the senior management. Due to this state of affairs, Amaka was not issued with an employment letter by the company and this state of affairs continued unremedied for the next year as the company searched for another Human Resources manager.

Amaka being a hard worker, was not bothered by the non-issuance of an employment letter, believing that she would prove her worth to the company over time. Moreover, she had been jobless for 2 years after the completion of her national youth service, and she was not going to let a simple matter as the non issuance of an employment letter prevent her from enjoying the fruits of such a juicy job.

Fast forward, and Amaka had worked punishing hours for 3 years under a continuously tense environment worsened by her nasty boss who had been pursuing a vendetta against her for not accepting his lascivious overtures. He had promised to ruin her career and make life difficult for her whilst she remained under his employment. Despite consistently delivering stellar work, she was repeatedly given low grades during performance appraisals and consequently denied promotions. Amaka felt like a slave and was treated almost like one.

A few months later, Amaka received an offer from another investment bank, with considerably better terms of service and benefits. She promptly turned in her 2 weeks notice of resignation and patiently waited for her salary at the end of the month. On the 30th day of the month, she received a letter from the Managing Director informing her that her resignation had been rejected on the grounds that it was company policy that employees were to give 1 (One) clear month’s notice or forfeit their monthly salary in lieu of notice. The letter was delivered by her boss with a malicious smirk on his toad-like face.

Amaka was incensed!!! This was a travesty, and she was not going to allow it. She promptly sought out legal advice on her options against the company.

The position of the law is that an employee has the right to resign with immediate effect, and the rejection of his resignation is tantamount to forced labour, and also against the time-honoured labour law principle that an employer cannot force himself on an unwilling employee. Employees are considered to have given notice of their intention to resign if they unambiguously inform their employers that they will terminate the contract on a certain date.

Furthermore, the Labour Act states that an employer must give an employee a written contract within 3 months of the commencement of the employment. The Labour Act also makes it unlawful for an employer to deduct the salary of employee by way of penalty, except in situations where the employer suffers a loss as a result of the misconduct of the employee.

From the facts there was a failure of Amaka’s employers to provide her with an employment agreement stipulating the terms of her employment, including the process for terminating the employment relationship. The necessary conclusion is that the attempt by the company to withhold her salary on the grounds of non-adherence to company policy falls flat on the failure of the company to comply with the provisions of the Labour Act. The absence of an express requirement for 1 month notice implies that the employment relationship could be terminated at will. Consequently Amaka’s resignation is valid at law, and she can enforce her right to the withheld salary against the company by a suit at the National industrial Court.

Investing in Renovating and Selling homes

Posted on October 18, 2017 by admin in Capital, corporate finance, Development, estate planning, International Investment, investment advisory, Personal Finance, real estate, Small Businesses, strategy, succession, transaction advisory, Uncategorized, upscale, wealth

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Balogun is a banker approaching his 55th birthday. After a 30 year career as a banker, and seeing several people make their fortunes in real estate, he has decided to become a real estate investor.

His plan is to invest in underpriced property, with the objective of renovating the buildings and selling the individual units at a higher value than the amount at which he purchased the property. Balogun is interested in understanding the risks and opportunities of this business and he comes to us for advice.

Some things to note:

Using this strategy, you purchase a building that needs fixing up for N2,750,000 and then you invest N500,000 in improvements (paint, landscaping, appliances, decorator items, and so on) and you also invest the amount of sweat equity that suits your skills and wallet. You now have one of the nicer homes in the neighborhood, and 2 years later you can sell this home for a net price of N4,000,000 after your transaction costs.

small_1376440841-og_living_after — After

Be sure to buy a home in need of that special TLC in a great neighborhood. With most properties, the long-term appreciation is what drives your returns. Consider keeping homes you buy and improve as long-term investment properties.
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After
This strategy is clearly not for everyone interested in making money from real estate investments. It is not advisable if you’re unwilling or reluctant to live through redecorating, minor remodeling, or major construction;

You may not be experienced or comfortable enough with identifying undervalued property and improving it; so always make sure you get a professional opinion on each property .

You should either have the budget to hire a professional contractor to do the work, or you should have the free time or the home improvement skills needed to enhance the value of a home.
You also need a financial cushion to withstand a significant downturn in your local real estate market, as this investment can be very cost intensive.
Mange your risks as much as possible!!! Make sure you do deep due diligence on the property in order to ensure that you have good title to transfer to a third party, especially since it may not make financial sense to perfect your title if you are not going to hold the property for a long period.

Estate Planning: Preparing for the Future

Posted on March 17, 2016 by admin in Capital, Compliance, corporate finance, estate planning, investment advisory, Personal Finance, real estate, succession, Uncategorized, wills

Thomas is a sound engineer, he makes a reasonably good income from his job with a prominent record label and he enjoys the benefits that comes from working with some of the biggest stars in the music industry. Thomas is married to Mimi and they have 4 beautiful kids Kene (15), Ada(13), Chika (10) and Thomas Jnr (8). The kids mean the world to him. Life is good for Thomas and his family, they travel regularly and have properties in choice areas within Lagos, Abuja and Port Harcourt.

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A few months ago, Thomas starts from sleep with severe chest pains, the pain is so intense that he can barely speak. Luckily his wife is able to take him to the hospital where he gets emergency treatment for a heart attack. Whilst he is recovering from his surgery, his wife informs him that his relatives had approached her and requested for a list of all his assets and properties, just in case that he passed away after the heart attack. She also informs him that his cousin attempted to take away one of his motor vehicles in her absence, and was only prevented by the efforts of the security man.

Thomas is incensed, however he is unable to leave his sick bed and even if he was, his doctor would not permit him to leave for fear that the heart attack would happen again. He instructs his wife to call his lawyers. Whilst she is away, he lies back and wonders what could have happened if he had passed away a a result of the heart attack- what would have happened to his family? Who would have provided for his family? He realises that his wife and children would have been thrown into the cold by his extended family and there would have been little remedy for them because he did not have a Will.

When his Lawyer arrives, Thomas asks for advice on the ways in which he can plan the distribution of his assets, so as to provide for his family in the event of his sudden demise and to ensure that his assets would be properly distributed and administered for the benefit of his wife and children. His Lawyer proceeds to explain the elements and benefits of an Estate Plan.

An Estate plan refers to the collection of documents which enables an individual manage his current and future assets in preparation for their death or incapacitation. Many people mistakenly believe that estate planning is only necessary for the wealthy. In reality, a basic estate plan is essential for everyone, regardless of income or net worth, because we all want to minimize confusion, unnecessary costs, and stress for loved ones after our death.

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Without proper preparation and documentation, assets like houses, retirement plans and savings accounts can end up in limbo for years, sometimes requiring expensive legal assistance to straighten matters out.

Some of the major estate planning tasks include:

Creating a will:
Wills are easy to create, but they require the distribution of assets to go through probate. Probate is a legal process that involves:
- Validating or proving a deceased person’s will;
- Identifying, inventorying, and appraising the deceased person’s property
- Paying debts and taxes;
- And ultimately distributing the remaining property as the will directs.
The probate process often requires a lot of technical paperwork and court appearances, and the resulting legal and court fees are paid from estate property, thus reducing the amount that’s passed on to heirs.

Limiting estate taxes by creating Trusts and setting up trust accounts in the name of beneficiaries:A trust can be more expensive to set up and requires professional assistance, but it provides benefits that a will cannot. First, when they’re structured properly, trusts will help avoid guardianship if you become incapacitated. Furthermore, A will only works after you’ve died; a trust, by contrast, works all the time, including periods of incapacity before death. Trusts usually avoid probate, which helps beneficiaries gain access to assets more quickly as well as save time and court fees. Depending on how it’s structured, a trust may also reduce estate taxes owed and can protect an estate from heirs’ creditors.

Establishing a guardian for living dependents:If you fail to appoint guardians in your Will and your children are orphaned before they reach 18, the courts will appoint guardians instead, but they won’t necessarily choose the people that you would have preferred to take care of your children. If when you pass away the other parent of your children survives, the surviving parent will normally continue to have full responsibility for the children. However, if neither parent survives (as in some road accidents) then the guardians you have appointed will take on the responsibility for your children. By appointing guardians you can ensure that your children are looked after by the people that you have chosen as the best people for the job.
Naming an executor of the estate to oversee the terms of the will:
The executor is responsible for making sure all assets in the will are accounted for, along with transferring these assets to the correct party. He or she also needs to ensure that all the debts of the deceased are paid off, including any taxes. The executor is legally obligated to meet the wishes of the deceased and act in the interest of the deceased. The executor can be almost anyone but is usually a lawyer, accountant or family member, with the only restriction being that he or she must be over the age of 18
Creating and updating beneficiaries on plans such as life insurance:

Setting up Funeral Arrangements:Funerals can also be paid for using assets from the deceased’s estate; however, the funds may not be available directly, so someone else will have to pay the immediate costs. The arranger of the funeral can pay the expenses and later be reimbursed in full once the estate is settled. Representatives like trust officers and estate attorneys can also pay funeral expenses from funds held in trust or from other available accounts, and later be refunded by the estate.

Establishing annual gifting to reduce the taxable estate:

Setting up durable power of attorney (POA) to direct other assets and investments

What happens if you die without a Will?

Posted on March 7, 2016 by admin in estate planning, succession, Uncategorized, wills

I cringe whenever I hear that a person (especially a man) dies without leaving a Will, especially where the individual has a family and young dependants.Your will lets you decide what happens to your money, property and possessions after your death.When a person who was married with children dies intestate (without a will) then difficult questions arise. Who are the beneficiaries entitled to the deceased’s property? Should the estate be distributed according to Customary Law or received English Law. These questions sometimes cause the members of the family to engage in a bitter dispute which may result in litigation.

NOTE: If you die without a will, the law says who gets what!!!

The purpose of intestate succession procedure is to distribute the deceased’s assets in a manner that closely represents how the average person would have designed his or her estate plan, had that person prepared a will prior to his death. However, this default can differ dramatically from what the person really would have wanted. Even where it is known what the person intended, no exceptions are made where no valid will exists. Nor are there any exceptions made based on need or special circumstances.

In the Nigerian situation, where a man dies without a will, but married under the
English law, the family members may apply for the letters of administration. The wife and one or two grown up children of the man who dies intestate are the family members qualified to apply for the letters of administration. But where there is no wife or grown up children, then the siblings of the late man can apply. The application will be made to the High Court of the state where the property is located, and it will be issued in the names of those who applied for it.

Section 49(1) of the Administration of Estates Law states that, the estate of a person who died intestate shall be distributed in the following manner; the surviving husband or wife shall take the personal chattels absolutely and in addition the estate (excluding personal chattels) shall be charged with the payment of a net sum of money equivalent to the value of one third of the estate, free of funeral expenses, to the surviving husband or wife plus interest from the date of death at the rate of 2½ % per annum until paid or appropriated and subject to providing for that sum the estate (excluding personal chattels) shall be held as follows; (a) one-third upon trust for the surviving husband or wife during his or her lifetime and subject to such life interest, on the statutory trusts for the children of the deceased; and (b) two thirds on the statutory trusts for the children of the deceased.

Section 36(1) of the Marriage Act states that, where any person who is subject to customary law contracts a marriage in accordance with the provisions of this Act and such person dies intestate leaving a widow or husband or any children of the marriage, the real and personal property of such person which might have disposed by will, shall be distributed in accordance with the provisions of the Laws of England relating to succession of estates, notwithstanding any contrary customary law.

To avoid the type of family dispute and the kind of litigation examined in this piece, it is advisable to consult a lawyer and prepare a will so that one does not pass on intestate leave behind problems for the family.