Modernizing Next-of-Kin Policies in Ghana: A Call for Comprehensive Reforms

I have been asking both laymen and professionals on the dynamics of Next of Kin on legal documents. Many Ghanaians often complete bank account opening forms, land registrations, Insurance, investments and pension documents with their next of kin details. Legal brains have concluded that, the term Next of Kin on account opening forms do not implies one is the heir or successor or the one that could benefit from your estates. On the account opening forms of banks and insurance, the next of kin details are collected including name, relations (Blood Relation), telephone, region and district. Accountholders and insurance policy holders have named next of kin but unwilling to disclose to the persons used as next of kin on the forms. The huge challenge is that Ghanaians think once a next of kin is on the know, the accountholder thinks he/she would be killed. The perception of being killed by the next of kin is conventionally accepted by many Ghanaians.

In recent times, I have been following posts and debates of Peter Bismark Kwofie, the CEO of the Institute for Liberty and Policy Innovation (ILAPI), a libertarian policy think tank located in Tema. Consistently, ILAPI also emphasized the next of kin is not a successor but a point of contact and Mr. Kwofie has asked the institutions to request more information on the next of kin to help families located the funds of their deceased relatives who had died intestate. This is to reduce and prevent family poverty.

With the keen interest I have had for this conversation, I was privilege to participate in the Dialogue on, Unlocking the funds of the beneficiaries and Nerxt of kin to improve human dignity. On November 27, 2023, in Accra, the High-level Policy Dialogue aimed at addressing issues related to reducing family poverty and enhancing human dignity through the implementation of Next-of-Kin policies resulted in a consensus on the imperatives needed for substantial reforms in Ghana's current approach in the application of next of kin. The dialogue brought together key stakeholders including representatives from the Attorney General's Office, SSNIT, Voxtua Legal Services, Tradition Authority, and a Member of Parliament.

This opinion piece aims to delve into the crucial aspects that emerged during the dialogue, emphasizing the urgent need for comprehensive changes in the existing Next-of-Kin policies. In as much I know, the Next of Kin is not a successor or the heir to the throne. He is also not an automatic person to benefit when is deceased but one that can be reached when a policyholder at the insurance or banks cannot locate the accountholder after a period of time.

Standardizing the Approach and Addressing Access to Justice Challenges: A Crucial Step Forward

MP for Madina Constituency, Mr. Francis Xavier Sosu Esq. highlighted the importance of standardization in the Next-of-Kin process, advocating for a unified approach that spans all beneficiaries. He called for collaboration between the Bank of Ghana (BoG) and the Office of the Attorney General to amend existing banking laws or establish a new legislative framework.

The call for standardisation is very important as it creates a fair and consistent system to allow stakeholders to have a unified basis to ensure accessibility and efficiency in helping to address some bottlenecks of the next-of-kin process. Again, this approach brings forth clarity and enhances compliance helping to reduce legal risk associated with the process.

Another significant concern raised by Hon. Sosu has to do with the challenges faced in accessing justice, particularly in the administration of estates. Sosu's call for the removal of administrative barriers for illiterate individuals when filling out bank forms reflects a commitment to inclusivity in the legal process as the current system is marred with obstacles making it problematic and expensive. I really subscribe to the position of the Hon. Member of Parliament.

Challenges of Intestacy and Enforcement gaps: The Role of Financial Institutions

I was with much ecstasy to see Mr. Peter Bismark Kwofie, Executive Director of ILAPI, sheding light on the issue of individuals dying intestate and leaving behind funds in various financial instruments. He reveals that government regulations often result in these funds being locked up and not easily accessible over time. He equally calls on financial institutions to proactively identify dormant accounts, next of kin as a matter of responsibility and observed that some financial institutions hardly adhere to BoG's policies raises concerns about enforcement mechanisms.

Addressing the challenges raised by Mr. Peter Bismark Kwofie is essential for promoting financial stability, fairness, regulatory compliance, and public trust. It will contribute to a more equitable and transparent financial system that serves the interests of both individuals and the broader society and ensures that stakeholders actively address administrative barriers and red-tapeism in accessing benefits.

Embracing Digital Transformation
Throughout the discussion it was evident that digital transformation was very central to addressing this challenge. With technology, stakeholders should be able to seamlessly integrate administrative processes related to Next of Kin to benefit from increased efficiency, reduced red-tape, and enhanced accessibility for all stakeholders. The call for digitization represents a progressive step towards a more streamlined and technologically advanced Next-of-Kin system.

John Kojo Boateng, the General Manager in charge of Benefits at SSNIT, offers positive insights into the efficiency of their benefit payment system, largely attributed to digitalization. However, the same cannot be said for other financial institutions, including banks, as the process may not be seamless despite these institutions achieving a high level of digitalization.

It is crucial that, once a next of kin or beneficiary is identified, the process of unlocking the funds should not be tedious, especially with the Ghana card being integrated into the system extensively. Financial institutions, instead, should ensure that necessary procedures are followed to guarantee the legal transmission of those funds or assets to the beneficiary.

Education on the subject matter:
One crucial element that emerged during this discussion pertained to education. The survey, as presented by ILAPI, revealed that the majority of families or beneficiaries listed as next of kin were not privy to the administrative processes involved in accessing the funds of the deceased. This calls for comprehensive education at all levels to continually inform people about matters related to the next of kin. Stakeholders must act proactively to ensure that citizens are educated on this subject matter since it is one of the most important paths to unlocking prosperity. Unfortunately, the current status quo exacerbates the financial situation of already impoverished families. They end up spending even more to access these funds, and at a certain stage, not all of them have the resources to keep up with the lengthy process, leading them to give up.

Conclusion: A Path Towards Equitable and Efficient Next-of-Kin Policies

Policy discussions are most often than not very important to addressing key issues within a society and the dialogue on Next-of-Kin policies in Ghana presents a commendable initiative. In order to attain a more equitable and efficient Next-of-Kin regime in Ghana, the reforms proposed above offers a more promising pathway. As stakeholders keep engaging on this subject matter, the focus should translate into tangible improvements for beneficiaries and families. As many families are finding it challenging to lift themselves out of poverty, this initiative will guide as one important approach to reducing poverty in Ghana. I really subscribe to ending family poverty by unlocking the funds of the beneficiaries and next of kin.

Written by:
Afari Samuel Sadat Saeed
Independent Policy Analyst