Next-of-kin cannot automatically inherit bank accounts – BoG
THE Bank of Ghana has issued an important clarification regarding the legal implications of designating a ‘Next-of-Kin’ on bank accounts, a move aimed at dispelling a common misconception among the Ghanaian public.
Contrary to widespread belief, the central bank has stated that a person named as the Next of Kin does not automatically inherit the funds in the account holder’s bank account upon their death.
In a statement signed by Ms. Sandra Thompson, Secretary of the Bank of Ghana, the institution emphasized that the Next-of-Kin’s role is primarily to serve as a contact person and does not confer any immediate financial rights or access to the deceased’s account.
“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,” the statement read.
Legal pathways for inheritance
The Bank of Ghana outlined the legal processes that must be followed for an individual to inherit or access funds in a deceased person’s bank account. If the account holder has left a Will, only the named beneficiary, as stated in the Will, can gain access to the account.
This access, however, is contingent upon the issuance of Letters of Probate by a court of competent jurisdiction, which legally empowers the beneficiary to manage the deceased’s estate, including their bank accounts.
In cases where the account holder dies intestate (without a Will), the procedure differs significantly. The bank explained 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.” These administrators are then granted the legal authority to access the deceased’s bank accounts and manage the estate.
The role of the Next of Kin
The Bank of Ghana also underscored the importance of choosing a Next-of-Kin who is both capable and informed about the responsibilities associated with this designation.
The Next-of-Kin should be of legal age and aware that their role does not automatically include inheritance rights. Instead, their primary function is to provide essential information and assist in managing any issues that may arise upon the account holder’s death.
Despite the routine practice of requiring a Next-of-Kin designation when opening a bank account, the Bank of Ghana stressed that this does not bypass the legal procedures required for accessing the funds of a deceased account holder. The statement highlighted the necessity of submitting documents such as a death certificate, Letters of Administration, or Letters of Probate to legally transfer the funds. This clarification by the Bank of Ghana is expected to provide greater clarity and help account holders make informed decisions when designating a Next-of-Kin, while also ensuring that legal procedures are followed to safeguard the assets of deceased persons.
