Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,153,190 members, 7,818,619 topics. Date: Sunday, 05 May 2024 at 08:00 PM

Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? - Business (3) - Nairaland

Nairaland Forum / Nairaland / General / Business / Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? (38020 Views)

Banks Have Stopped Giving Dollars. What is Your Experience? / Sunti Sugar To Retain All 2,400 Staff Despite COVID-19 Challenges / How To Recover Funds From Accounts Of Deceased Loved Ones. (2) (3) (4)

(1) (2) (3) (4) (5) (6) (7) (8) (Reply) (Go Down)

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Eriokanmi: 8:35pm On Sep 10, 2020
A good reason why you should make either your wife or any of your children or trusted relations a co-signatory to your account. Had that happened in this case, someone else would have applied for a cheque book or use the existing one to draw the money. several billions of naira are in the nigerian banks which none of the diseased family members knows anything about. You could open a personal current account in this case.

2 Likes

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by WoundedLamb: 8:35pm On Sep 10, 2020
majamajic:
Mine was worst , not even 10%

Let me sit here

They retained more than that when you died?

These banks could be terrible sometimes.

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by optimus106(m): 8:36pm On Sep 10, 2020
Fheelzz:
I wonder why only a person can access his own account


Baba,no mind them...

Send me your pin so we can both operate your account.

4 Likes 1 Share

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by friday2011(m): 8:37pm On Sep 10, 2020
Someone7:
Quickly write a complaint to consumer protection in CBN and see how the bank will start behaving themselves. You should name and shame that bank. Very useless people

Dont jump into conclusions...

The part of 10% cannot be true unless the relatives or children of diseased are trying to cut corners by not providing the 2 papers needed to convert the account to ESTATE OF MR LAGBAJA...

This can only happen if a staff of the bank is trying to play smart for selfish reasons which is unethical ...

If the bank finds out, that staff will be sacked and prosecuted

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by LARRYOBRAIN(m): 8:37pm On Sep 10, 2020
No they don't, if there is any foul play, report the bank to CBN.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by winkmart: 8:38pm On Sep 10, 2020
Ok
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by peacenaija(m): 8:38pm On Sep 10, 2020
elchariotlp:
Either the Staff that advised you is ignorant or you did not understand the advise given.

10% of the money is payable as Estate Fee to the Government. The sum is usually paid by the Administrators (survivors of the deceased) before the Letter of Administration is issued while in some states, the Court directs the Bank to deduct the 10% and remit it to the state while the Balance is made available to the Administrators.

All that the Bank deducts averages 5k to 10k expanded in confirming the Letters of Administration or Court Order from the Probate Registry or Court respectively.

Thanks for the clarification.

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by TheChameleon: 8:39pm On Sep 10, 2020
Offpoint:
They tax all you all your lifetime and you still pay for dyinggrin

Interesting country.

There's Death / Estate tax in the USA and UK.

And everyone bright knows those countries tax very well while one is alive.

Get an education before spewing your pathetic low self-esteem trash...

6 Likes 3 Shares

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by williams85(m): 8:40pm On Sep 10, 2020
If you don't have close to 500k in the account, don't even worry going. Because the stress doesn't worth it.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Ajibel(m): 8:41pm On Sep 10, 2020
They do oo

Did same to my dad's accounts
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by airoport: 8:41pm On Sep 10, 2020
elechariotlp said it all. Listen to him and follow his advice. The 10% is the estate inheritance tax due to the government when you apply for Letters of Administration. This instrument enables you & your Co-administrator to stand in your father's stead to manage his assets for yourself and other beneficiaries.

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Ijaya123: 8:42pm On Sep 10, 2020
Gamesmart:
Just look at this thread.

Loads of Nigerian "yoots" commented without any idea/knowledge about laws or the logic behind the deduction. Whether it was legal or not.

Unemployable dunces!

This is why a company will advertise a job vacancy in Nigeria and say "Indians Only" can apply.

Useless yoots!

https://www.nairaland.com/6108650/indians-only-job-advert-abuja/3#93773152

Little wonder they spend all their time watching BBNaija and even donate money to evicted housemates for the reasons I still don’t know.

Buhari was right after all, bunch of lazy youths.

2 Likes

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by tellmoon(m): 8:43pm On Sep 10, 2020
peacenaija:
Dear Nairalanders,

Trust we all keeping safe.

I really need clarification from bankers and experienced persons in the house. A friend of my lost her father recently and they have started receiving their father’s entitlement which was paid into the account domiciled with a Nigerian bank operated by the deceased.

However, my friend’s mum lost their dad’s ATM, so they reported to the bank with the death certificate and requested for a new ATM or the money moved to another account but the bank is now asking for a letter of Administration and they will take 10% of the money left in the deceased account.

My grouse is not the letter of administration but the 10% they are asking on another person’s entitlement. Is there any law backing this? How can we go about it because the money is a substantial amount?

I'd appreciate your advice and clarifications. Thanks

It is a matter of law that acts on the transfer of the estate of the deceased. The law acts on all cases in this regards. You may as well contact a legal person for more clarification.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Cjrane2: 8:43pm On Sep 10, 2020
peacenaija:
Dear Nairalanders,

Trust we all keeping safe.

I really need clarification from bankers and experienced persons in the house. A friend of my lost her father recently and they have started receiving their father’s entitlement which was paid into the account domiciled with a Nigerian bank operated by the deceased.

However, my friend’s mum lost their dad’s ATM, so they reported to the bank with the death certificate and requested for a new ATM or the money moved to another account but the bank is now asking for a letter of Administration and they will take 10% of the money left in the deceased account.

My grouse is not the letter of administration but the 10% they are asking on another person’s entitlement. Is there any law backing this? How can we go about it because the money is a substantial amount?

I'd appreciate your advice and clarifications. Thanks

This is Nigeria! Everybodi na kriminal!

In Nigeria, people abuse their powers and authority, yet the regulating agencies or public officers will not raise a finger. The worst part is that even the illegality will not be addressed by CBN. Its like when police shoot ordinary citizens, their commanders simply shake their hands instead following the law to punish defaulters.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by teemy(m): 8:45pm On Sep 10, 2020
peacenaija:
Dear Nairalanders,

...
My grouse is not the letter of administration but the 10% they are asking on another person’s entitlement. Is there any law backing this? How can we go about it because the money is a substantial amount?

I'd appreciate your advice and clarifications. Thanks

From what I know, This applies to when there is no will
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Zamakas: 8:48pm On Sep 10, 2020
I am a staff in probate registrar high court and I ll like to clear the air . D 10% is for d state government not d bank and it's 10% in dis nation. It's to help generate revenue for the government. In Britain I heard it's 90% cos it's assume that the deceased's property is for the government alone.

6 Likes

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Eriokanmi: 8:50pm On Sep 10, 2020
EgunMogaji2:


I had to go to court to get Polaris to get my mums balance.

The judge ordered 5% to be deducted for probate department. Seems pretty straightforward.
Eyah, may her soul rest in peace. 5% is still much especially if the deposit is huge. Lawyer would collect money for the service rendered too. Once our lawyer hears a thing like this in Nigeria,instead of showing empathy, dem fit do juju make dem win that case cos of their own cut grin. I always advise people to have one co-signatory in case of ''incasity''. A personal current account is ok so both of you could have access to the account. By the time the co-signatory emptied the account, nobody would say anything. You could also apply for a cheque book without the account officer raising eyebrow. make your mandate, ''either to sign'' instead of ''both to sign'' Remember to do this arrangee with trusted fellows like wifey, children or siblings.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by gilvia: 8:52pm On Sep 10, 2020
peacenaija:


Okay, so what's the charge actually for? Which service have the provided? I'm sure that they will pay for the letter of Administration when it's time to get it
The 5 or 10% represent Government taxation on intestate estate ( without a will) of deceased persons. Paid in all states though the percentage varies.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by IFELEKE(m): 8:52pm On Sep 10, 2020
peacenaija:
Dear Nairalanders,

Trust we all keeping safe.

I really need clarification from bankers and experienced persons in the house. A friend of my lost her father recently and they have started receiving their father’s entitlement which was paid into the account domiciled with a Nigerian bank operated by the deceased.

However, my friend’s mum lost their dad’s ATM, so they reported to the bank with the death certificate and requested for a new ATM or the money moved to another account but the bank is now asking for a letter of Administration and they will take 10% of the money left in the deceased account.

My grouse is not the letter of administration but the 10% they are asking on another person’s entitlement. Is there any law backing this? How can we go about it because the money is a substantial amount?

I'd appreciate your advice and clarifications. Thanks

This is a scam, what you need to do is to go for the letter of administration then approach the bank afterwards to process an estate account on behalf of the deceased.
The account will be operated by the court appointed trustee(s) as stated in the letter of administration.
Upon presentation, the bank is required to initiate a process of opening an estate account and transferring the oustanding balance from the deceased's account to the new account.
Charges that may be taken are purely administrative and usually less than 10k probably to cover for legal search done on the documents supplied.

Hit me up for further clarifications.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by kokomilala(m): 8:55pm On Sep 10, 2020
@Omihanifa, you're right. It's the state government through the court house that collects the 5 percent, not the bank.
When I lost my dad 5 yrs ago, I approached First Bank. They asked me to get the L. A. I quickly went to High Court, Igbosere, where I got it. Then went back to First Bank. They wrote the total amount in the L. A. They never asked for any cuts.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by SocialJustice: 8:56pm On Sep 10, 2020
peacenaija:


I wonder oo, we will do as advised. Thanks
Report on twitter. Talk to the bank's hq and mention CBN.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Bobxin: 8:56pm On Sep 10, 2020
There was nothing like that in my situation in 2010.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by galantjoe(m): 8:57pm On Sep 10, 2020
10% inheritance tax is payable to state govt on proceeds of deceased assets. The money is not for the bank but for state govt. The money must be paid upfront before letter of administration will be issued.

Dear op, it is standard procedure one must follow before accessing the deceased money. The issue of next of kin is nothing but void in accessing the dead acct. It is only letter of administration or will can be used access the deceased acct.

Consult your lawyer or accountant to help u to process the documents

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by iam2gunz: 8:57pm On Sep 10, 2020
Join the Nigerian [b]Navy [b]DSSC whatsapp group through this link https:///GpvZKingg0209qS27wdJ2B
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by maasoap(m): 8:57pm On Sep 10, 2020
NwaNimo1:
In Naija...... aka the zoo/shiithole, anything goes!

grab that moni whilst you can

You guys really take much pride in calling your fatherland derogatory names, I wonder what it makes you the inhabitants. Barstards everywhere
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by ArcSEMPECJ(m): 8:57pm On Sep 10, 2020
In Anambra, they do take 30% of the money left in the deceased account by the probate registry office but the beneficially will have to pay the money first at hand to the office and a receipt issued to the person before going to the bank to claim such money.....

There is no percent to be remitted to the bank except if one decides to give the staff money for delivering the task fast.......
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by mechanics(m): 8:58pm On Sep 10, 2020
They should go through the court, banks don't take anything from a diseased account.
Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by majamajic(m): 9:00pm On Sep 10, 2020
WoundedLamb:


They retained more than that when you died?

These banks could be terrible sometimes.

Next time read well before insults, the topic is about a dead dad , not about his death

I will allow u this night !

1 Like

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by BreconHills(m): 9:02pm On Sep 10, 2020
alizma:
Pls when things like this happen, do us a favour by calling the bank's name in capital letter so that everyone will know which bank in Nigeria to avoid. Intact calling the bank name will help solve your problem than you think.
The idea of keeping things in secret is one of the problems we have in this country. You are more of an accomplice than a victim by keeping the identity of an evil organisation or person in secrecy
Just imagine suffering to save 10m and death struck, some set of thieves will sit under the acc to claim 1m that they didn't work for. Tomorrow they will declare profit as if they are hard working to have make such profit.
Executive arm robbers

The estates of deceased people are charged every where. In the UK inheritance tax is 40% on amounts over £325,000. This is why it is better to transfer assets to a Trust in your lifetime than to leave it in a will. Note that it is not just the money in the bank that is charged, even the property values are calculated and charged and least anyone should imagine they can bribe the valuation officers in Lagos, they follow a schedule of estimated valuations for every property in Nigeria.

Morale? Trust your spouse, use a joint account or better still a Trust.

3 Likes

Re: Do Nigeria Banks Have The Right To Retain 10% From A Deceased’s Account? by Nobody: 9:02pm On Sep 10, 2020
See focus on the letter of administration if u re able to get the money within a year thank God

(1) (2) (3) (4) (5) (6) (7) (8) (Reply)

Are People Using Old Naira Notes In Your Area? / The Best Insurance Company In Nigeria / Marvis Marshal-Idio Wins Heritage Bank's Next Titan, Gets N5m/Car (Pics)

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 76
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.