Next-of-Kin Brouhaha, Bank of Ghana wades in

Published August 30, 2024

On Tuesday 27^th August 2O24, the Bank of Ghana (“BOG”) issued a statement clarifying the status of a NEXT-OF-KIN. This Statement comes against the backdrop of growing misconception on the matter of next-of-kin.

Naming a next of kin is part of the account opening processes as same is integral to the Know Your Customer (KYC) requirement of the Central Bank.  A next-of-kin-for account opening purposes-is to identify and contact a person related to the account holder when the need arises. It is therefore not the case that, a person named as Next-of-Kin automatically inherits the account of a customer upon his or her demise.

In their statement, BOG stated inter alia that:

1. 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.
2. 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, and a court of law will have to grant Letters of administration or Probate to empower the person who has been named in the Will as a beneficiary, to obtain access to the deceased customer’s account.
3. 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”.

From the foregoing, even if one is named as a Next of Kin to an account or other related banking product and services, they are required to provide legal documents, such as  Letters of Administration or Probate to be able to access a deceased customer’s account”.

Judicial Pronouncement on Next-of-Kin

The statement from BOG apart from being instructive is only consistent with and confirms what has been the status of a next-of-kin under the law.

In the reported Ghanaian case of In re Appiagyei Danka(decd): Appiagyei Danka v Appiagyei Danka 1973 2 GLR188, it was said of a next-of-kin that he/she is the nearest blood relation and the object of requiring the making of such nomination was to assist in tracing and contacting the relations of a deceased person.

In essence, nominating someone only as a next-of-kin without more cannot and does not necessarily make that person a beneficiary of any money or property of a deceased.

For a next-of-kin to be a beneficiary under the estate of a deceased including the balance in the deceased’s bank account, they must either be named in the Will of a testator or qualify as one of the class of persons specifically mentioned in the PNDCL 111, the Intestate Succession Act, such as surviving spouse, surviving child or parent of the deceased.

Stated differently, you being named as a next-of-kin to a bank account does not make you a beneficiary under a Will of testator nor does it make you a beneficiary in the case of intestate succession.  

Consequently being designated as a next-of-kin in a bank document other than being nominated as a beneficiary has no relevance beyond the person serving as an emergency contact person.  

So the next time you hear of the popular Ghanaian saying, “monkey dey work, baboon dey chop”, that is next-of-kin and beneficiary at play.