How to Claim Deceased Bank Account as Next of Kin in Nigeria
The documentation is often cumbersome, and most of the time, you might need to hire the services of a lawyer to help you do the runabouts.
Sometimes, the cost of claiming such funds is even more than the value in the bank account.
So, most people often give up and forfeit the right to claim the bank account of their deceased once they encounter the usual frustration.
Nowadays, most families try to avoid these frustrations by giving close family members direct access to their bank accounts in the eventuality of their death.
Alternative Ways to Access a Deceased Bank Account
If you want to bypass issues with beneficiaries accessing the bank account of a deceased family member, there are a lot of options to consider.
Sharing Debit Card PINs with Family Members
This is the default method that family members in Nigeria use to secure funds in their deceased bank account.
Debit cards are easily accessible and can be used to access funds without visiting the bank in the eventuality of the account owner’s death.
Operating a Joint Account with Dual “OR” Signatory
Joint accounts are best for having more than one person access a bank account, and the terms of access are quite flexible.
Businesses and families utilize joint accounts in different ways. Some require multiple signatures for withdrawals while others require one signature from any of the account signatories.
A joint account with an “OR” signatory allows either the first person's signature or the other signatory’s signature to access the bank account..
This can come in handy as an alternative way for family members to have access to a bank account in the eventuality of the death of one of the account signatories.
Operating a Custodian Account in the Name of the Beneficiary
Custodian accounts are operated or administered by an adult or parent on behalf of their ward.
There are varying terms for the transfer of account ownership such as a stipulated date, or the unavailability or death of the custodian.
This is a great way to secure the financial future of the account beneficiary in the eventuality that the account administrator dies.
Adding an Authorized Signatory to an Existing Account
For bank accounts that do not use a debit card, this is a good alternative for accessing funds in the bank account of a deceased person.
Banks allow account holders to add authorized signatories to already existing accounts.
That means, in cases where account holders are unavailable to physically access the account, either due to distance, being bedridden, or death, a second authorized person can have access to funds in the bank account.
Payable on Death (POD) Instrument
Banks now make available the Payable on Death (POD) instrument for account holders to sanction transfer of assets to beneficiaries in the eventuality of their death.
With this instrument, the beneficiary is able to acquire the account balances or other financial assets of the deceased without going through a probate process, as long as they can provide proof of death of the deceased.
Who is a Recognized Next of Kin?
In the case that a deceased account holder did not utilize any of the aforementioned alternatives to provide access to their bank account, their next of kin would be the default beneficiary of their bank account.
But the next of kin must provide proof that they are the recognized beneficiary.
So, who is a recognized next of kin?
A next of kin is a living family member, close relative, or spouse. They include but not limited to:
- Children
- Wife(s)
- Husband
- Foster Parent
- Adopted Children
- Cousins
- Nephews
- Nieces
- Uncles
- Aunties
- Grandparents
- Grandchildren
How to Claim Next of Kin
A next of kin is mostly closely related to the account holder either by blood or legal means.
A next of kin cannot be claimed, but designated by the account holder. The next of kin designated by an account holder can be changed periodically as required by the account holder.
In the case that the original next of kin designated by the deceased account holder is also deceased, the next closest group of living relatives can be designated as next of kin via legal means. If there are no close relatives to the deceased, then the financial assets legally revert to the government.
How to Change Next of Kin on your Account
To change the next of kin designated on your bank account, simply approach the customer care of your bank and ask for an account update form.
With this form, you can change previous details on your bank account, including the designated next of kin.
Some banks may require additional details of the next of kin such as phone number, Identification documents, or passport photographs.
Can Next of Kin Access a Deceased Bank Account?
A next of kin has a claim on the bank account of the deceased but they will have to prove their claim with some required documents.
The CBN has stipulated that unclaimed assets in dormant accounts can now be easily claimed by next of kins or legal representatives via a reclaim document.
Unclaimed funds in dormant bank accounts are usually invested into a trust fund pool by the CBN, and invested in interest-yielding securities.
Next of kins can access these funds by providing documentation via their respective banks.
How to Claim Bank Account of a Deceased as Next of Kin
To lay claim to funds in the bank account of a deceased relative as a next of kin, you can visit the respective bank branch and request for a reclaim form.
The beneficiary must complete the reclaim form, provide documents to prove ownership, a sworn affidavit, valid identification of the beneficiary.
After submitting the application at the bank, the balance and any interest accrued via the CBN trust fund will be transferred to the beneficiary within 10 working days.
Related Posts:
How to Overcome Being Broke and Get your Money Right (My Experience)
10 Reasons Why I Decided to Start a Blog in 2024
Top 10 Daily Income Businesses to Start in Nigeria (2024)
7 Ways to Make Money Online with your Blog without Using Ads
Here's The Quickest Way to Make Money Online: My Experience
10 Online Side Hustles to Make Money from Home in Nigeria (2024)
7 Things I Wish I Knew Before I Started Crypto Trading
Best Crypto Arbitrage Opportunities for Making Quick Profit
10 Latest Ways to Make Money Online in Nigeria (2024)
Is Crypto Trading Worth Investing in? Here's My Experience
7 Quick Ways to Make Money on Fiverr as a Freelancer
7 Ways to Invest in Cryptocurrency for Monthly Income