Have you ever considered who would inherit your hard-earned money and bank assets after you depart this world? Many of us contemplate this subject, yet we frequently ignore the nuances involved.
We prefer to choose someone close to us – perhaps a parent or spouse – when filling out paperwork that demands a next of kin, believing that they would automatically become the legal heirs.
The truth, however, is significantly more complicated, and many Nigerians are ignorant of the complicated process that it involves. In Nigeria, a common misconception about next of kin is that they automatically inherit our assets once we die, which is completely false.
While the designation of next of kin provides a point of contact for banks or financial institutions during periods of inactivity, it does not ensure asset ownership or inheritance rights.
Read Also: The dangers of undisclosed investments
So, what does the next of kin mean?
A person’s “next of kin” is defined as a person’s closest living relatives through blood or legal relationships. In the event that a person passes away without leaving a will and has neither a spouse nor children, the next-of-kin connection is crucial in deciding inheritance rights.
The next of kin could also have obligations both during and after the death of their relative. For instance, once a relative passes away, the next of kin may need to handle their financial affairs and funeral/burial arrangements.
However, the next of kin is also someone the bank or organization where you have filled a form reach out to in case of emergency, account dormancy, death, or any other issue that requires a third party. While they may be the point of contact for banks or financial institutions when they can no longer get hold of you, they do not have any automatic inheritance rights.
A “legal heir” has also frequently been misunderstood as “next of kin.” It’s critical to recognize the distinction between a next of kin and a legal heir when discussing inheritance.
For context, the person who is closest to you in terms of family or relationships is known as the next of kin. A close relative in this case could be a spouse, child, parent, brother, or other close relative. On the other hand, a legal heir is a person who has a legal claim to your possessions following your passing. Your will or Nigerian inheritance law, whichever applies, will decide this.
Where does the fate of your bank assets lie after your death?
If a next of kin is a signatory to one’s account, they automatically get access to the account in the event of the owner’s demise. But it is hardly ever the case that a next of kin has access to someone’s hard-earned finances when they are alive. Especially not in Nigeria. As such it hardly happens that the kin of a deceased person is a signatory to their account.
If the deceased leaves behind a will (testate) and that will doesn’t formally identify the next of kin as a beneficiary, then the next of kin title is almost irrelevant because a valid will allows the deceased individual to choose the beneficiaries of his wealth.
However, if the deceased left no will i.e. dies intestate, the next of kin will still not automatically claim the assets. At best, he can be contacted first about the situation and help in understanding both the deceased and the situation. In such circumstances, the bank must commence the Probate process in order to find the proper beneficiaries.
In actuality, the fate of your bank assets upon your death is determined by this legally complicated process called “Legal Probate.”
The probate process
In a legal process known as probate, the court determines whether a will is valid or, in the absence of a will, who the proper heirs should be. If you have been appointed by the deceased as his executor. or chosen by the court, you will oversee its distribution and make sure it complies with any applicable inheritance rules or the intentions of the decedent.
They can decide who receives the MONEY in your account with the aid of this probate period. This is a very expensive and time-consuming process as you will need to get a grant of probate or a letter of administration. You will still be required to forego a very reasonable amount of money for legal fees even after the entire process is completed.
The need for a valid will
The law does not immediately transfer your assets and/or money to your next of kin when you pass away in Nigeria, as it does in many other nations. Instead, if you have a will, it will determine how your property is divided. In the absence of a will, your assets will be dispersed in accordance with intestacy laws.
The laws of intestacy vary from state to state in Nigeria, but they generally follow a similar pattern i.e. Nigerian inheritance law. Under the laws of intestacy, your property will be distributed to your spouse, children, and parents, in that order. If you have no spouse, children, or parents, your property will be distributed to your siblings, aunts, uncles, and cousins.
If you want to make sure that your assets and/or money are distributed to your next of kin, you need to create a will. A will is a legal document that specifies how you want your property to be distributed after your death. You can appoint your next-of-kin as the executor of your will, which means that they will be responsible for carrying out your wishes.
If a deceased does not have a will and they die without any surviving relatives, their property will escheat to the state. This means that the state will take ownership of their property.
The importance of financial literacy in Nigeria
The subtleties of next-of-kin declarations and the significance of having a will that is legally binding should be understood by Nigerians.
We can protect our assets and make sure that our loved ones receive their just inheritance without excessive difficulty or delay by making informed decisions thanks to our financial literacy.
By dispelling myths and fostering financial knowledge, we can make sure that our assets are smoothly transferred to the people we care about, giving them the help they require through trying times.
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