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Investment Trust Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law that establishes and regulates an investment trust arrangement. It defines the relationship between settlors, trustees, and beneficiaries, while setting out detailed investment parameters, management responsibilities, and distribution policies. The agreement ensures compliance with Nigerian trust and investment laws, including the Trustees Investment Act and Investment and Securities Act, while providing a framework for professional investment management and wealth preservation. It includes specific provisions for risk management, reporting requirements, and trustee duties within the Nigerian regulatory context.

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What is a Investment Trust Agreement?

The Investment Trust Agreement is a crucial legal instrument used in Nigeria when establishing a formal trust structure for investment purposes. It is particularly relevant when individuals or organizations wish to separate the legal ownership and management of assets from their beneficial ownership. This agreement type is essential for wealth management, succession planning, and professional investment management within the Nigerian legal framework. The document must comply with various Nigerian regulations, including the Trustees Investment Act, Investment and Securities Act, and relevant SEC guidelines. It typically includes detailed provisions for investment powers, trustee duties, risk management, and distribution policies, making it suitable for both private and institutional trust arrangements. The agreement's structure accommodates various investment objectives while ensuring proper governance and protection of beneficiary interests under Nigerian law.

What sections should be included in a Investment Trust Agreement?

1. Parties: Identification of the Settlor, Trustee(s), and Beneficiaries

2. Background: Context of the trust establishment and key objectives

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Declaration of Trust: Formal establishment of the trust and transfer of initial assets

5. Trust Purpose and Duration: Specific purposes of the trust and its intended duration

6. Investment Powers and Objectives: Detailed investment mandate and permissible investment categories

7. Trustee Powers and Duties: Comprehensive list of trustee powers and responsibilities

8. Investment Guidelines and Restrictions: Specific investment limitations and requirements

9. Risk Management: Framework for managing investment and operational risks

10. Distribution Policy: Rules governing distributions to beneficiaries

11. Reporting and Accountability: Requirements for financial reporting and trustee accountability

12. Fees and Expenses: Structure of trustee compensation and allowable expenses

13. Amendment Provisions: Procedures for modifying the trust agreement

14. Termination: Conditions and procedures for trust termination

15. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction

What sections are optional to include in a Investment Trust Agreement?

1. Investment Committee: Establishes an investment committee structure - used for larger trusts with complex investment decisions

2. Co-Trustee Provisions: Required when multiple trustees are appointed, defining their relationship and decision-making process

3. Foreign Investment Provisions: Required when the trust includes international investments

4. Tax Provisions: Detailed tax planning structures - used for more complex tax arrangements

5. Protector Provisions: Used when a trust protector is appointed to oversee trustee actions

6. Environmental, Social and Governance (ESG) Guidelines: Used when specific ESG investment criteria are required

7. Shariah Compliance: Required for Islamic investment structures

8. Successor Trustee Provisions: Detailed procedures for trustee succession - used in long-term trusts

What schedules should be included in a Investment Trust Agreement?

1. Schedule 1 - Initial Trust Property: Detailed inventory of initial assets transferred to the trust

2. Schedule 2 - Investment Guidelines: Specific investment criteria, asset allocation ranges, and benchmarks

3. Schedule 3 - Fee Schedule: Detailed breakdown of trustee fees and expense categories

4. Schedule 4 - Authorized Investments: List of specifically authorized investment types and assets

5. Schedule 5 - Beneficiary Information: Detailed information about beneficiaries and their entitlements

6. Appendix A - Reporting Requirements: Templates and specifications for required reports

7. Appendix B - Risk Management Procedures: Detailed risk management protocols and procedures

8. Appendix C - Compliance Checklist: Regulatory and internal compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use

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