The Bank of Ghana has issued a clarification on who qualifies as a “Next of Kin” to a bank account. The bank says that simply being named as the next of kin of an account holder is not enough to access the deceased customer’s account.
To be eligible, the next of kin must be a family member or a legal guardian of the account holder. The next of kin must also provide documentation to prove their relationship to the account holder.
It said there was 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.
Facts
The bank said for the avoidance of doubt, there is the need for the public to appreciate the fact that, first, 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.
Secondly, it said, to inherit or have access to the account of a deceased customer, one would have to be named in the deceased customer’s Will as a beneficiary of the account, and a court of competent jurisdiction would 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.
It also noted that 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 Kin to be of legal age,” the bank added.
“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 bank said.
The bank said “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.
