The next of kin of a deceased bank account holder is not the automatic beneficiary – BoG.

Did you know that being named as the next of kin for a bank account doesn’t automatically grant you access to the account’s funds in the event of the account holder’s death?

The Bank of Ghana (BoG) has clarified that a next of kin is merely a designated contact person for the account holder, and not necessarily the person who inherits the account. This means that the next-of-kin status in banking primarily serves as a means for the bank to trace the account holder, rather than a direct beneficiary of the account’s contents.

Mr. Augustine Amoako Donkor, Assistant Director of the Financial Stability Department at BoG, explained this during a media workshop in the Ashanti Region. He said, “The next of kin is someone close to the account holder, often a relative or trusted person, but their role is mainly to provide information about the account holder when needed.”

He spoke on the topic “The Next-of-Kin Concept” at a two-day training session aimed at enhancing financial reporting skills for 25 journalists, while providing insight into the operations of the central bank. Topics covered included Ghana’s monetary policy, inflation dynamics, and foreign exchange market trends.

Mr. Donkor emphasized that even a close friend could be named as next of kin because their primary role is to provide information if the bank is unable to reach the account holder. He also pointed out that accessing the funds of a deceased person’s account is a completely separate issue, involving legal processes.

For someone to inherit a deceased person’s bank account, they must be explicitly named in the account holder’s will. If named, they must then go through the legal process of obtaining probate from a court to gain access to the account.

In cases where the account holder dies without leaving a will, individuals who wish to access the account must apply to become administrators of the estate. This requires obtaining Letters of Administration from a court to manage the account of the deceased.

“In Ghana, the next-of-kin concept isn’t defined by any law, but it remains a common practice. Until such time that it is codified, it will likely continue in this traditional manner,” Mr. Donkor noted.