Next-of-Kin does not automatically inherit bank accounts – BoG

The Bank of Ghana (BoG) has urged the public to thoughtfully evaluate their selection of a next-of-kin, emphasizing the importance of choosing an individual who is not only of legal age but also possesses the ability to provide pertinent information regarding the account holder when required.

This advisory comes in response to what the Central Bank identifies as a widespread misunderstanding that the individual designated as Next-of-Kin by the account holder automatically inherits the account’s funds upon the account holder’s demise.

In a statement issued by the secretary of BoG, Sandra Thompson, the Bank of Ghana clarified that specific legal protocols must be adhered to by the appointed next of kin in order to access the funds in the account of the deceased.

Below is the statement 

Bank of Ghana seeks to promote financial inclusion and, on that basis,
encourages all citizens of legal age to own a bank account or mobile money
account. As part of the Know-Your-Customer policy, during account
opening, financial institutions require certain information from you (the
customer) to be able to identify and contact you when the need arises.

The “Next-of-Kin” is one of such requirements during account opening. In
Ghana, there is no specific statutory definition of Next-of-Kin. It generally
refers to an account holder’s closest living relative who could be contacted in
the event the account holder is not reachable. Typically, an account holder
will be required to provide the name, address, and telephone number of the
person nominated as Next-of-Kin.

The term “Next of Kin” in account opening and other banking related products and services forms is often misconstrued. There is a pervasive misconception that the person nominated as Next-of-Kin by the account holder automatically inherits the funds in the account when the account holder passes on.

For the avoidance of doubt let us appreciate the following:

i. The person nominated as the Next of Kin does not automatically inherit
or gain access to the account or the funds in the account of the
deceased.
ii. To inherit or have access to the account of a deceased customer, one
will have to be named in the deceased customer’s Will as a beneficiary
of the account, and a court of competent jurisdiction will have to grant
Letters of Probate to empower the person who has been named in the
Will as a beneficiary, to obtain access to the deceased customer’s
account.
iii. Administrators of the estate of a person who dies intestate can be
appointed through Letters of Administration (L.A.) issued by a court of
competent jurisdiction, which grants access to a deceased customer’s
account.

Based on this understanding, it is important to choose a Next of Kin who is
capable of providing relevant information about you, when the need arises. As much as possible we encourage the choice of Next-of-Kins to be of legal age.

In summary, please note that even if one is named as a Next of Kin in an
account opening or other related banking product and services document,
they will still need to provide legal documents, such as death certificate,
Letters of Administration or Letters of Probate to be able to access a deceased
customer’s account.
(SGD)
SANDRA THOMPSON (MS)
THE SECRETARY

Source: Ameyawdebrah