by Mokolo Law

How to Protect Your Global Assets as a Nigerian Living in Texas

As a Nigerian living in Houston, Texas, having assets back home is one of the biggest achievements most people in the diaspora dream of, but managing and protecting your assets can be a very difficult task without the right strategic planning. Whether you own real estate, a business, or investments in the U.S., safeguarding all you have been able to achieve from economic instability, legal risks, and unforeseen challenges is very important. In this blog post, we’ll explore how to protect your global assets as a Nigerian living in Texas USA.

How to Protect Your Global Assets as a Nigerian Living in Texas

1. Diversification of Your Investments

One of the best ways to protect your assets is through diversification. That means you should avoid focusing your wealth on one country, currency, or asset type. When you diversify, your wealth still remains stable even if the economy is in chaos elsewhere.

How to Diversify

1. If you are into Real Estate, it is wise to invest in properties both in Nigeria and the U.S. to balance risks from currency fluctuations or political instability.
2. If you are into Stocks and Bonds, consider U.S. and global markets, including Exchange-Traded Funds (ETFs) and mutual funds.
3. If you’re into digital investments or cryptocurrency, consider Bitcoin or other stable coins as a hedge against inflation.
4. If you are into business investments, spread your investments across different industries and jurisdictions to minimize risks.
5. If you own a brand, register trademarks in both the U.S. and Nigeria to prevent infringement.
6. If running a business, register in a business-friendly state (e.g., Texas or Delaware) for tax benefits.

2. Legal Structuring of Your Assets

If you have significant assets in Nigeria or internationally, setting up a legal structure can safeguard your wealth from risks such as legal claims, taxation, or economic downturns. By structuring your assets properly, you ensure legal protection and efficient wealth transfer.

How to have a proper legal structure of your assets:

1. Set up a trust or limited liability company (LLC) to shield your assets from lawsuits, taxation issues, and inheritance complications. Creating a trust can help you manage assets for your family while minimizing tax liabilities, and registering your business in a U.S. LLC or Corporation it gives your business stronger legal protection.
2. Ensure your estate plan aligns with both U.S. and Nigerian laws to prevent legal conflicts at all costs.
3. Give power of attorney by assigning a trusted representative for your assets in Nigeria to oversee transactions in your absence.
4. A holding company in a business-friendly jurisdiction can add an extra layer of protection.

3. Use Dual Banking Systems

Having bank accounts in multiple countries, especially in the US and Nigeria, where your assets are, can provide financial flexibility and security. By leveraging a dual banking system, you protect yourself from financial instability in any one country.

Banking Strategies include:

1. Maintaining a U.S. bank account ensures access to stable banking services, while a Nigerian account facilitates transactions in Nigeria. Having a dual account will help to manage currency fluctuations.
2. For added protection, consider offshore accounts by exploring financial hubs, which offer tax advantages and asset protection.
3. Using Fintech Solutions Services like Flutterwave, etc., allows seamless international transactions and currency exchanges. This will also help to avoid excessive fees.

4. Get Adequate Insurance Coverage

Insurance is a critical tool for asset protection, especially when dealing with international risks. Insurance minimizes financial risks and ensures peace of mind.

Types of Insurance that are a must-have include:

1. Property Insurance will protect your real estate investments in both Nigeria and the U.S.
2. Choose a life insurance policy that covers your family’s needs in case of unexpected events.
3. As a business owner, ensure you have Business Insurance in place. This will keep your liability and assets protected.
4. Having international health insurance coverage ensures you’re covered anywhere you go around the world.

5. Plan for Currency Fluctuations and Inflation

The Nigerian Naira is prone to devaluation, so it is essential to protect your wealth against currency risks. By planning for currency fluctuations, you prevent loss of value in your assets.

Ways to plan for currency fluctuations and Inflation

1. Hold Assets in stable currencies in U.S. dollars, British pounds, or euros. This provides more stability for your assets.
2. Use Forex Accounts to avoid sudden exchange rate losses.
3. Invest in Gold & Precious Metals as they act as hedges against inflation.

6. Cybersecurity & Digital Asset Protection

Cyber fraud and scammers are currently on the rise, to protect your digital assets and enhance cybersecurity consider the following:

1. Utilize secure financial platforms always by activating two-factor authentication (2FA) on your banking and investment accounts to enhance security.
2. Safeguard digital assets by using reputable password managers and maintain an up-to-date digital will to securely store cryptocurrency keys, passwords, and essential documents.
3. Stay vigilant against scams and be cautious of fraudulent investment schemes, especially those targeting individuals in Nigeria and the U.S.

7. Have an Estate Plan and Will

To protect your global assets for future generations, have a proper estate plan in place. Proper estate planning prevents inheritance disputes and ensures your legacy is preserved.

Use these steps to secure your wealth:

1. Write a will to ensure your assets are distributed according to your wishes in case of death or incapacitation.
2. Set up a living trust that can prevent legal battles and make asset transfer seamless.
3. Appoint power of attorney to legal professionals who understand U.S. and Nigerian inheritance laws to manage your affairs in case of emergencies.
4. Secure a global life insurance policy to protect your beneficiaries.

8. Stay Compliant with U.S. & Nigerian Tax Laws

Taxes can be complex when managing wealth across different countries. Avoid legal troubles by staying compliant with tax laws because ignoring tax obligations can lead to heavy fines and asset seizures.

Here are some Tax Compliance Tips you can consider:

1. If you have significant assets abroad, comply with the U.S. Foreign Bank Account Reporting (FBAR) and Foreign Account Tax Compliance Act (FATCA). Report foreign bank accounts if the total exceeds $10,000 to avoid U.S. penalties.
2. Understand double taxation treaties, as the U.S. and Nigeria have agreements to prevent double taxation—consult a tax expert to maximize benefits.
3. Stay updated on Nigerian tax policies to prevent asset seizure or fines.
4. Work with a tax expert specializing in U.S.-Nigeria taxation to optimize tax efficiency legally and minimize your tax burden while staying compliant.

9. Secure Real Estate Investments

1. Conduct due diligence of the “Title Verification” of a property before purchasing Nigerian properties to prevent fraud.
2. Hire a reputable property management firm to oversee maintenance and rental agreements of your properties.
3. Get property insurance coverage in both countries for protection against natural disasters and theft.

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Final Words

As a Nigerian living in Texas, protecting your global assets requires a proactive. By implementing these strategies, you can safeguard your wealth across borders and ensure long-term financial stability for yourself can secure your wealth for the future.