Inheritance and Gift Taxes

by Oserogho & Associates

Inheritance and Gift Taxes


The generally held opinion in Nigeria is that there is no Inheritance and Gift Taxes in Nigeria. This is despite the enforcement of a Ten per cent (10%) Estate Fee charged on a deceased person’s Estate when the Administrators or Executors of that Estate apply for Letters of Administration, with or without a Will.

As taxation is a statutory matter, there is in Lagos State, the Administration of Estates Law which regulates the Estates of deceased persons subject to Lagos State Law. The latter Law does not however apply to the distribution, inheritance or succession of the Estate of a deceased person whose affairs were regulated by Customary Law during their lifetime.

Probate and Letters of Administration

The Probate Rules of the High Court of Lagos State (Civil Procedure) Rules 2012 provides that whenever a person subject to the jurisdiction of Lagos State dies, all applications for the grant of any Letters of Administration of the Estate of the deceased person, with or without a Will attached, must be made to the Probate Registrar of the High Court of Lagos State. Such grant cannot however be entertained and issued within Fourteen (14) days, where a Will is attached, or Twenty-One (21) days where no Will is attached, of the demise of the individual.

Applications for Letters of Administration, without a Will attached, are practically more burdensome and expensive as the Applicants are required to provide under Oath, Affidavits, Bonds or Guarantees with Sureties before such applications can be considered. The value of the administrative Bond(s) can be twice the value of the Estate. The latter attracts additional costs and expense especially as the higher the value of the Estate, the higher the expense and the Estate Fee.

Application for Grant of Probate

Section 14 of the Administration of Estates Law of Lagos State requires the Executors or Administrators of a deceased person to, when submitting a Probate application, exhibit under Oath, a true and perfect Inventory with Account of the real and personal property of the deceased person.

Every application for the grant of Letters of Administration, without a Will annexed, must file a true declaration of all the personal property of the deceased person with a true value of these properties also stated. Upon making the application, the Applicant is issued a Bank Certificate, together with other statutory forms, where the bank account balance and the value of shares of the deceased person is stated by the Banks and the Registrars of companies where the deceased person operated or owned shares.

Probate Application Fees and Inheritance

There are various Court fees to be paid before a Probate or Letters of Administration application can be evaluated and approved.

Once a Probate or Letters of Administration is approved by the Probate Registry, an Estate fee of Ten per cent (10%) of the value of the Estate, which is tantamount to an Inheritance Tax, must be paid to the State Government where the Probate application was lodged and approved. There is therefore in Nigeria an Estate or Inheritance Tax of Ten per cent (10%) of the value of the Estate of a deceased person.

Beneficiaries and Gift Tax

The Personal Income Tax Act, as amended in 2011, imposes Personal Income Tax on individuals, communities, families and the trustees of an Estate.

Sections 16 and 27 of the Personal Income Tax Act, as amended, provides that the income of an individual or a trustee or executor of a deceased person is ascertained in accordance with the provision of the Second Schedule to this Law, which charges to income tax any payment or benefit to a beneficiary out of a settlement, trust, or estate. Also see Article 3 of Part 1, Second Schedule of the Personal Income Tax Act, as amended for further elucidation on this point.

DISCLAIMER NOTICE. This Legal Alert is a free educational material, for your general information and enlightenment purpose ONLY. This Alert, by itself, does not create a Client/Attorney relationship between yourself and our Law Firm. Recipients are therefore advised to seek professional legal advice and counselling to their specific situations when they do arise.

COPYRIGHT NOTICE. This Legal Alert is protected by International Intellectual Property Law and Regulations. It may however be shared with other parties provided that our Authorship is always acknowledged and this Disclaimer Notice is attached.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Oserogho & Associates | Attorney Advertising

Written by:

Oserogho & Associates

Oserogho & Associates on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.