Have you ever wondered what happens to a bank account of a deceased?
The account can be handled by a next-of-kin or a beneficiary in order for them to retrieve the money of their deceased relatives.
Here are the steps to take in order to retrieve such monies.
1. A notice of death must be submitted to the bank(s).
In some banks in Ghana, you can submit the notice of death to any branch of the said financial institution but in other banks, you will have to submit it to the branch of the deceased.
After a notice of death is presented, no debit entries are allowed on the account until a probate letter or Letter of Administration is received. However, deposits into the account are accepted.
Cheques for withdrawal received after the notice of death are returned, no interest is charged on current accounts.
Meanwhile, any investment held in the name of the deceased which is yet to mature should be allowed to run its tenor.
The account is marked as “Customer Deceased”.
2. Provide the bank with certified true copies of the Probate or Letters of administration.
A Letter of Administration is a formal document issued by a court of probate appointing a manager of the assets and liabilities of the estate of the deceased in certain situations.
This letter must be signed by the Registrar must be sighted and indicated as such on the reverse of the Certified True copy.
If the deceased died intestate and the balance falls below a certain amount (the amount is determined by the court) the Bank must be presented with a Registrar’s Certificate issued by a court of competent jurisdiction.
3. The named executors or administrator must provide IDs for verification.
The names stated in the letter must tally with those indicated in the Probate or Letters of Administration. Any differences in names must be rectified by the court or by a sworn affidavit.
If all the documents are found to be in order the following details must be recorded in the Probate/Letters of Administration Register held at the branch:
• Date Received
• Date of the Probate/Letters of Administration
• Where granted
• Value of the Estate
• Names of the Executors or Administrators.
• Actual Amount Paid
4. If payment is to be affected in cash the following processes must be followed:
• A debit transfer voucher must be passed to close the account and a Payment Order issued in the names of the named Executors or Administrators.
• The Payment Order must be endorsed by the Payees and opened by the Authorised Officials for payment.
5. If the Executors or Administrators have an account for the management of the deceased’s Estate, the deceased’s account should be closed and a Payment Order issued in favour of the Executors or Administrators of the Estate.
6. The amount paid must be indicated on the reverse side of the original of the Probate or Letters of Administration which must be given to the Executors or Administrators as the case may be.