BizHeadlines: Next of Kin not an automatic beneficiary of a deceased's bank accounts

In business this week, The Bank of Ghana (BoG) has advised the public to carefully consider their choice of next of kin, stressing that they select someone who is not only of legal age but also capable of providing relevant information about the account holder when necessary.

This follows what the Central Bank describes as 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”.

In a notice signed by the secretary of BoG, Sandra Thompson, Bank of Ghana explained that specific legal procedures must be followed by named next of kin to access funds in the account of the deceased.

This includes providing a death certificate, letters of administration or letters of probate to be able to access a deceased customer’s account.

Also, Government has paid GH¢2.5 billion in bonds to cover arrears owed to the Social Security and National Insurance Trust (SSNIT).

This was disclosed by the Director-General, Kofi Osafo-Maafo, during a speech at a stakeholder engagement with pensioners in Kumasi.

“What we have done recently is that we have had some successes. The government, most recently, defrayed approximately two and a half billion Ghana cedis of the arrears in the form of bonds, which again helps the underlying position of the Trust,” Mr. Osafo-Maafo said.

He further mentioned that as of August this year, SSNIT had paid well over GH¢3.7billion in pensions to over 250,000 retired workers in the country.

Meanwhile, the New Patriotic Party Caucus in Ghana’s Parliament on Wednesday, October 23, 2024, wrote to the Speaker of Parliament, urging him to recall the House to deal with urgent business.

In their letter to the Speaker, the Caucus listed three key issues to be addressed, for which it has triggered Article 112(3) of the 1992 Constitution and Standing Order 53 of the Parliament of Ghana.

Describing the business as urgent and of national importance, the NPP Caucus listed tax exemptions for beneficiaries of the One District, One Factory Programme and the approval of a $250 million Ghana Financial Stability Fund aimed at boosting the country’s financial sector, as well as some bills for the House to attend to upon its resumption.

Ernestina Serwaa Asante hosted this week's BizHeadlines.

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