Introduction
A persistent misconception in Nigeria is that naming someone as a “Next of Kin” on a bank account automatically entitles that person to inherit the account holder’s money when they die. This belief has gained traction on social media, with some suggesting that a “Payable on Death (POD)” form can be used to bypass the probate process. In reality, these claims are not supported by Nigerian law and can mislead grieving families.
This article examines the true legal position on:
- The role and limitation of a Next of Kin designation
- The applicability (or lack thereof) of POD directives in Nigeria
- The probate process as the lawful means of accessing a deceased person’s bank accounts
1. Next of Kin: Legal Meaning and Limitations
In Nigerian law, “Next of Kin” is an administrative concept rather than a legal entitlement. It is primarily used by institutions to identify an emergency contact or a reference person.
Judicial Position
In Union Bank of Nigeria Plc v. Ajabule (2011) LPELR-8239(CA), the Court of Appeal held:
“The term ‘next of kin’ does not confer any legal right of inheritance or authority to deal with the estate of a deceased person. It merely serves as a contact reference.”
Therefore, even if a bank record lists someone as “Next of Kin,” that person cannot lawfully inherit or access funds without complying with probate procedures.
2. Probate and Letters of Administration
Access to a deceased person’s bank account in Nigeria requires either:
- Grant of Probate (where the deceased left a valid Will), or
- Letters of Administration (where the deceased died intestate).
Legal Framework
- Administration of Estates Law of Lagos State (Cap A3, Laws of Lagos State 2015)
- Probate Practice Directions of state High Courts
- Banks and Other Financial Institutions Act (BOFIA) 2020, Section 45 on dormant accounts
Procedure
Applicants must petition the probate registry, presenting:
- Death certificate
- Inventory of assets
- Sureties (in intestacy cases)
- Other required documents
Once granted, probate or letters of administration provide the legal authority to manage and distribute estate assets. Any bank that releases funds without such authorization risks liability for conversion or wrongful disbursement.
3. “Payable on Death” (POD)
The POD system, recognized in the United States under the Uniform Probate Code §6-101, allows account holders to designate a beneficiary who automatically receives the funds upon death—bypassing probate.
However, in Nigeria:
- There is no legal provision for POD mandates.
- BOFIA 2020 does not recognize or enforce POD instructions.
- The Central Bank of Nigeria requires funds of deceased account holders to be administered in line with estate law.
Thus, any claim that POD forms can transfer funds in Nigeria is misleading and legally invalid.
4. Joint Accounts and Survivorship
A lawful exception exists for joint accounts. Where an account is expressly designated as a joint tenancy with right of survivorship, the surviving holder may access the funds without probate.
However:
- The survivorship intention must be clearly documented in the account mandate.
- In the absence of clarity, courts may presume a tenancy in common, requiring probate for the deceased’s share.
In Udo v. Eshiet (1994) 8 NWLR (Pt. 363) 483, the Supreme Court stressed the need for explicit evidence of survivorship in co-ownership arrangements.
5. Consequences of Misunderstanding
Misconceptions about Next of Kin and POD can lead to:
- Delays in accessing estate funds
- Family disputes over entitlement to assets
- Loss of funds, as dormant accounts unclaimed for 10 years are transferred to the CBN (BOFIA 2020, s.45(1))
- Legal liability for banks or individuals unlawfully distributing assets
6. Recommendations and Best Practices
Practical Tip: Estate planning is not optional, it is essential to ensure smooth access to bank accounts and assets.
- ✅ Make a Valid Will: ensures clarity and expedites probate
- ✅ Use Joint Accounts carefully: only with clear survivorship mandates
- ✅ Appoint Trustees: for complex estates or minor beneficiaries
- ✅ Update Next of Kin Records – for contact efficiency
- ✅ Educate Family Members: about probate and succession processes
Conclusion
Under Nigerian law, access to a deceased person’s bank account is strictly governed by probate. The “Next of Kin” designation carries no inheritance rights, and the “Payable on Death” (POD) concept is not recognized. Only a valid Will or letters of administration provide lawful authority to inherit or manage funds. Attempts to bypass probate expose families and financial institutions to serious consequences.
References
- Union Bank of Nigeria Plc v. Ajabule (2011) LPELR-8239(CA)
- Udo v. Eshiet (1994) 8 NWLR (Pt. 363) 483
- Administration of Estates Law of Lagos State (Cap A3, Laws of Lagos State 2015)
- Banks and Other Financial Institutions Act (BOFIA) 2020
- Probate Practice Directions of the High Court of Lagos State
- Uniform Probate Code (U.S.) §6-101 (comparative reference)