₦airaland Forum

princepee:
Lost a cousin some years ago
Over six million he had in a bank got trapped there.
He wasn't married, his next of kin was his mom, his mom died few years before him.
He didn't bother to change the next of kin.

His brothers tried to retrieve the money to no avail.
The bank did everything to frustrate them....

Most bankers are rogues
6 million naira 5 years ago is like 15 Milla now.

seunmsg:
I’ve read the response of many people in this thread and while a few managed to address an aspect of it, most simply share an ignorant opinion.

So your question majorly is, what happens to the balance in an account once operated by a deceased person. The next of kin or family members of the deceased can access the money if they simply follow the law. If the deceased made a will, the person the account was donated to can access the money. If the deceased died without a will, the next of kin of family members can go to the probate section of the high court and get a letter of administration. With that, they can access the account.

So, what happens if the next of kin or family members did not make any effort to claim the money? No, the money does not go to the bank. They can’t claim it as an income and the MD can’t use it to buy private jets as claims by someone above.

After some period of inactivity, the account becomes dormant. Balances in dormant accounts are held by the bank and reported to CBN annually. In accordance with section 77(2) of Finance Act 2020, the balances in all accounts that have been dormant for six years are transferred to “Unclaimed Funds Trust Funds”. This account is managed by the Debt Management Office and held in perpetual trust by the FG on behalf of the owners.

So, banks only hold on to the money for six years after dormancy with the hope that the owner will show face within the six years period. After that, FG collects the money as a kind of loan in trust for the owners. If they show up, the money plus interest is processed and returned to them. If not, it remains in perpetual trust.

MatrixCircle:
A banker told me how they steal such money at the bank.
They keep watching at an account that has been dormant for a long time. Then they try to send messages to the phone number and no response, though the account has next of kin, they will never contact the next of kin if he or she never comes to inform the bank that the owner of this account is deceased. Also they can turn off the bank alert linked to the account and begin siphoning the money or use the account to do illegal transactions. Also many families don't know their love ones has such account in the bank.

So do not operate a secret account, always make sure trusted family member know all account in case of tragic and unexpected happens.

The banker told me he japa with his family from accessing and using a dormant account of about 40 million naira in it. No family member ever came forward.
Ask yourself why are so many bank staff have excess access to millions of naira to japa to any country of their choice, UK, Canada, Australia or US. Most are peoples savings at the bank.

Bluntemperor:
God bless you OP,for this should interest many Nigerians but because it is not about Girlfriends or Boyfriends Affairs,it may be a dry topic.
The Frustrating Roles of Judiciary is also noted ,you know - for many have died Interstate ( No Will) and their Funds and Entitlement- are just lying in the Banks Vault - Not Yet Claimed after Many Years Of Dispute by Family Members or Just ignorance by the same Families 😢.

bixton:
It is not the banks fault.
Why would he not change the next of kin when the person passed away. There's always room for bank update anytime a customer needs such. The brothers have no right going to the bank whatsoever to claim such money. They only succeeded in informing the bank of the death of their brother...

Nevertheless, there's a misconception about next of kin when it comes to bank and money. Next of kin is actually the person that can be easily reached in case of there's an issue.



If anyone wants a loved one be able to get their funds in case they die, they should request for the form called "pay upon death"(POD) form and fill it accordingly.
Banks don't actually tell this except you ask for it.

Burob:
Don’t blame the bank for thy ignorance, apply for the letters of administration without Will of your cousin, once granted, the bank will release the funds.

Lastpharoah33:
Is this applicable to all the old generation banks?

Lastpharoah33:
Most of us operate 2-4 bank accounts, while we use one for day to day cash transactions, there is this one we tend to stash money and leave it untouched for a very long period of time.

With the way people die in this country, I strongly believe most if not all (especially the elderly ones) have a bank account no one knows anything about.

My question is, what happens to this monies left by the deceased?

Can banks identify the account of these dead people?

I have also witnessed cases where the family of the deceased can't access these monies due to incomplete paperwork or some other reasons.

Let's discuss...

princepee:
Lost a cousin some years ago
Over six million he had in a bank got trapped there.
He wasn't married, his next of kin was his mom, his mom died few years before him.
He didn't bother to change the next of kin.

His brothers tried to retrieve the money to no avail.
The bank did everything to frustrate them....

Most bankers are rogues
6 million naira 5 years ago is like 15 Milla now.

Lastpharoah33:
Most of us operate 2-4 bank accounts, while we use one for day to day cash transactions, there is this one we tend to stash money and leave it untouched for a very long period of time.

With the way people die in this country, I strongly believe most if not all (especially the elderly ones) have a bank account no one knows anything about.

My question is, what happens to this monies left by the deceased?

Can banks identify the account of these dead people?

I have also witnessed cases where the family of the deceased can't access these monies due to incomplete paperwork or some other reasons.

Let's discuss...

princepee:
it's over 5 years now.
Can they still get the money??
A lawyer was involved the last time they tried

princepee:
Lost a cousin some years ago
Over six million he had in a bank got trapped there.
He wasn't married, his next of kin was his mom, his mom died few years before him.
He didn't bother to change the next of kin.

His brothers tried to retrieve the money to no avail.
The bank did everything to frustrate them....

Most bankers are rogues
6 million naira 5 years ago is like 15 Milla now.

jrobbins:
The account goes dormant after some period of inactivity. Later, unclaimed funds must be moved to the regulator I e CBN

Machiny:
Is there a way one can access this funds? As in solution.

princepee:
Lost a cousin some years ago
Over six million he had in a bank got trapped there.
He wasn't married, his next of kin was his mom, his mom died few years before him.
He didn't bother to change the next of kin.

His brothers tried to retrieve the money to no avail.
The bank did everything to frustrate them....

Most bankers are rogues
6 million naira 5 years ago is like 15 Milla now.

delpee:
Yes but if there are verified claims, a request can be made to CBN by the bank.

Gotocourt:
It's not all Lawyers that know their jobs, some can be very clueless .

Zero apologies

princepee:
Lost a cousin some years ago
Over six million he had in a bank got trapped there.
He wasn't married, his next of kin was his mom, his mom died few years before him.
He didn't bother to change the next of kin.

His brothers tried to retrieve the money to no avail.
The bank did everything to frustrate them....

Most bankers are rogues
6 million naira 5 years ago is like 15 Milla now.

CodeTemplarr:
Banks are naturally after deposits and will be happy to have such fund forever. If the regulatory authorities like NDIC CBN can force next of kin into the BVN record, all accounts balances under BVN can be collasped into one next of kin.

ppogba:
Unclaimed balances are transferred to the CBN by commercial banks from time to time.

Fools saying bankd are thieves should be ashamed to hawk their ignorance publicly.

lakefist:
Bank will not release the fund willingly even with letter of administration. They will keep frustrating you to stop chasing after the money.

Imagine my Dad's pension still trapped and the useless pension commission is asking me to come down from diaspora to claim it. They won't even allow my mum to claim it because she wasn't named as NOK.

rodbel:
In Nigeria, many people tend to resist following due process. When asked to go through a formal procedure, it’s often perceived as an attempt to frustrate or take advantage of them. However, banks are highly regulated institutions and must adhere to established guidelines.
Deposits in banks are recorded as liabilities, and unless there is a government directive, such as the previous administration’s attempt to mandate the transfer of dormant funds or accounts inactive for over 10 years to the CBN, banks cannot unilaterally move funds. Without such a policy, money in a deceased person’s account remains there as long as the bank operates.

Claiming funds from a deceased person’s account typically involves these steps:

If the deceased left no will (which is common in Nigeria), the family must approach a Probate Court to obtain a Letter of Administration (LOA).

1. To start, the family presents the death certificate at the probate registry. The authenticity of the certificate will be verified.

2. The registry then issues a letter allowing the family to request account balances from all banks where the deceased held accounts.

3. After obtaining these balances, the registry prepares the Letter of Administration for the appointed administrators.

4. The administrators take the LOA to a bank to open an Estate Account, titled as: “Estate of [Deceased’s Name]”.

5. Account opening requirements remain standard: valid IDs, BVN, proof of address, etc.

6. Once opened, funds from the deceased’s account(s) are transferred to the estate account, and the original accounts are closed.
If the deceased had multiple accounts across different banks, the administrators choose one bank for the estate account. Other banks will issue bank cheques for their respective balances, which are then deposited into the estate account.

PS: Banks cannot bypass these steps because they are bound by regulations. Following due process ensures transparency and protects all parties involved

Lastpharoah33:
I've seen it from this angle too, not the bank's fault anyway.

MrSly:
Whose fault then?

Banks are insincere from the on set. If they were sincere they would guide any customer through all processes including the ones that would help your loved ones get your money in case of eventual demise.

But they are targeting people's money even from the time you want to open the account.

Lastpharoah33:
Most of us operate 2-4 bank accounts, while we use one for day to day cash transactions, there is this one we tend to stash money and leave it untouched for a very long period of time.

With the way people die in this country, I strongly believe most if not all (especially the elderly ones) have a bank account no one knows anything about.

My question is, what happens to this monies left by the deceased?

I think the main issue is that most people have trust issues, for valid reason at times, and hence, don’t disclose their assets to spouses / family, and even the NOKs they have filled in. Consequently, when they pass on, nobody knows of the existence of such assets.

Can banks identify the account of these dead people?

I have also witnessed cases where the family of the deceased can't access these monies due to incomplete paperwork or some other reasons.

Let's discuss...

seunmsg:
Your dad’s pension is trapped where? PTAD? PENCOM? Military pension?

ppogba:
I think the bank's branch. will transfer to their Hq after two years and the Hq transfers to CBN most likely after five years.

I wouldn't know if the policies at the banks. and the CBN has changed now.

The transfer is to prevent illegal debits into the accounts as it was common before.

laptopsforsale:
This is very clear. Please advise me in this scenario:

Dad left almost 3 years ago. Thankfully, he had an ATM card to his account through which he receives his pension, and mum knows the pin of the card. So, she accesses his pension to support her living. But the ATM card expired last March and since then, mum can no longer access the money, and the money has been piling up.

Please, do you have any idea as to how she can access the money in the account?

lakefist:
Bank will not release the fund willingly even with letter of administration. They will keep frustrating you to stop chasing after the money.

Imagine my Dad's pension still trapped and the useless pension commission is asking me to come down from diaspora to claim it. They won't even allow my mum to claim it because she wasn't named as NOK.

Burob:
Well sorry to hear that, as for me after donkey years in Yankee, on my return I obtained a letters of administration without Will, & all monies was paid to me.

From my understanding, even as the next of kin, u will require a letters of administration before u can access the funds.

Advice your mum with your written consent since u are in the diaspora to get an attorney to obtain a bank certificate from the High Court with jurisdiction & apply for the letters of administration without Will.

It wouldn’t be too hard as long as u are both on the same page, let the due process take its course, no later than 6 months after she applies, it will be granted.