MY NEXT OF KIN

When we walk into the banking hall of any commercial bank in Nigeria, with the intention of opening a personal account (be it savings or current), we are asked to fill a blank space with the words “Next of Kin”. We do as we are told and are quick to fill the blank space with the name of the person we want the money in our account to be given should anything happen to us.

Who actually is a “next of kin”? Why exactly do banks ask for the name and contact of that person? According to the Collins dictionary, a next of kin is someone who is one’s closest living relative, especially in official or legal documents. Why do banks ask the contacts of a person’s next of kin? In the Nigerian banking system, the purpose of this is for bank to have a “first point of contact if anything should happen to you”. This is contrary to what the average Nigerian believes. Most people believe that the idea of filling and putting down their “next of kin” in the bank space, is so that the bank would have someone it can easily release the funds in the account should they pass on untimely or without a Will. So, it is believed that this “Next of Kin” of theirs would upon their death, be able to contact the bank and withdraw the funds in it without any problem. That is why most people fill in the names of their spouses, children, etc. as next of kin.

Newsflash: this is not the case. In fact, upon the death of an individual, the bank does not release the money in the deceased’s account upon request of the named next of kin. There is a due process that must be followed for the money in any account to be released to family members.

When an individual pass on, there is an important question we need to ask. Did he/she die testate (i.e if the person wrote a Will before he died), or did he/she die intestate (i.e if the person died without writing a Will). If he died testate, the family will have to obtain a Probate letter from the Probate registry of the High Court of the State where the deceased resided, and the money in the account will be shared according to how he/she dictated in the Will. If he/she did not write a Will, then the family will have to obtain what is called a Letter of Administration from the Probate registry and share the money either according to their traditional belief, or religious belief or the State’s Administration of Estate Law.

The Probate Registry.

The probate registry is the registry in the High Court of any state that deals with the properties of deceased people in Nigeria. When a person writes a Will, he/she lodges it at the probate registry, and upon his/her demise, the family of the individual are to head to this registry and have the Will read to them by the probate registrar. Upon reading the Will, the executors (which are usually listed in the Will) are handed a letter of probate, to enable them administer (carry out the wishes of the deceased) the Will.

If he died intestate, the probate registry will demand for not less than two members of the deceased’s family. It is usually the spouse and one child, who must be above 18 years of age. These individuals are given a Letter of Administration by the probate registry, and this allows them to have access to the funds in the bank.

NOTE:

1. That the government takes 10% of whatever is in the account. This is called probate fee, and it is usually deducted by the bank and sent to the government account even before the Probate letter or Letter of Administration is issued.
2. If for any reason, the person you named as next of kin in your bank is not the one issued any of these letters, then that “next of kin” can never have access to that account. Only the holders of the letter of Administration (who are called Administrators) have access. And, in the case of a person who wrote a Will, it is the Executors (the people who were listed by the deceased to administer his estate, i.e his properties) who will have power to inform the bank of who the beneficiary of the funds in the said account is. Please, not that the executors can only name the person as stated in the deceased’s Will.

What are your options?

Now that you know that the “Next of Kin” is not really what you think it is, especially in the banking sector in Nigeria, what are your real plans for your “Next of Kin”? How do you intend to help them have easy access to the sum in your bank accounts?

The truth is, death is inevitable. It must happen, and as such, one should prepare for it and ensure that their loved ones are well catered for after they are gone.

You can instead make your next of kin a signatory to your account. A signatory to an account has easy access to that account at any time, and he/she does not need any of the letters (probate letter or letter of administration) to withdraw the said sum. Moreover, 10% does not have to be paid.

You also have the option of writing a Will. In your Will, clearly state all your bank accounts, and who you want to have the money in the said account. If you want two beneficiaries to have access to the account, state so. You can even go further to state what percentage you want each beneficiary to have. Read my article on Will writing.

Lastly, you can ask your bank to give issue you a POD form. This means “Payable on Death”. The name of the person on the form would be able to access the money without stress. All the person needs to do is to present the death certificate of the deceased to the bank.