Inheritance issues are deemed sensitive in Ghana and have always been a sensitive issue as a result of complex factors deeply rooted in cultural, legal, and socio-economic reasons. These elements contribute to the endless challenges of inheritance discourses including administrative barriers . Currently, a staggering 67.4% of the population forms the dependency ratio of Ghana. The high dependency ratio in the country not only puts immense pressure on the working class and affects the economic prosperity of citizens but widens the poverty gap and in effect can lead to an increase in the number of people enrolled in state-sponsored poverty alleviation programmes such as Livelihood Empowerment Against Poverty (LEAP) and the School Feeding Programme. These anti-poverty programs have failed in addressing and lifting people out of poverty.
One significant but often overlooked aspect that contributes to the high dependency rate in the country is the inability of families to claim funds from breadwinners who die intestate.
A study conducted by the Institute for Liberty and Policy Innovations (ILAPI), a free enterprise policy think tank in Ghana indicates that a whopping 9 out of 10 Ghanaians do not have a written Will, citing; this finding denotes that “many Ghanaians will die intestate where their dependents will go through very difficult administration processes to claim the deceased estate which could potentially alleviate financial burdens and reduce poverty”.
However, the process of accessing the funds comes with lots of hurdles to cross which ILAPI highlighted in its 2023 report. This includes uncountable documentation to access other documents, unclear timelines for document release and verifications, high costs to access the documents, unclear timelines for investigations of death, next of kin, beneficiaries and nominees, institutional red tape, and others. Besides the bureaucratic hurdles, there is also a lack of transparency in the process for state agencies and financial institutions, both public and private.
How long should this exist and continuously push people into poverty? The cry of the poor is never heard and yet we pretend to solve problems of the society to take the poor out of poverty. We worsen the plight of the poor each day. It is high time for the country to reform policies and establish a clear path for beneficiaries to access these funds, thereby fostering economic empowerment and poverty reduction.
The complexities in accessing the funds of deceased relatives arise from a web of laws and regulations governing inheritance, which include the 1992 constitution, the Administration of Estates Act, the Will Act, and the Intestate Succession Act among others. The Births and Deaths Registry acts as the primary state institution that provides the legal documents before families can progress to the next stage of attempting to claim funds from financial institutions. According to the Births and Deaths Registry, claimants go through different institutions including health facilities where the death occurred for medical cause of death, police corona report for accidental deaths, the district assembly for burial permits, a report from local authorities such as chiefs, pastors and Imams among others of which they do their investigation to authenticate these documents before a death certificate or death extracts is issued.
To navigate the complex legal procedures, families are often forced to fall on lawyers which the majority of Ghanaians cannot afford, leading to long delays, high costs, and cultural challenges that usually result in the abandonment of the process for those who cannot pay their way through. These monies at the banks are transferred to the state as long as the accounts become dormant within five years while families who could rely on such funds for their economic well-being struggle to survive. This is a great enlightenment from the ILAPI’s report and if Ghana is serious about fighting poverty, this is one of the primary ways to do so, and now by taking off such unnecessary red tape and administrative barriers to save the poor and families.
I feel emotional but you and I know our dead relatives’ funds are locked up with banks, pensions, and insurance companies.
Financial institutions such as banks, insurance companies, and Social Security entities like the Social Security and National Insurance Trust (SSNIT), also play a role in these challenges. They request information that is not specified on account opening forms or insurance policy subscription documents, making it difficult for beneficiaries to access funds. Furthermore, institutions often fail to inform them, leaving them in the dark about their entitlements.
The lack of transparency and accountability in the process has led to significant issues, including inheritance fraud and financial institutions accumulating funds that should be distributed to the rightful beneficiaries. A significant portion of the population does not have a written will, which only adds to the complexity of the situation. Cultural beliefs, superstitions, and fear of disclosing next of kin details further complicate the process.
ILAPI proposed several ways of addressing these challenges of administrative bottlenecks to pave the way for economic empowerment and poverty reduction
Public Education by Stakeholders, including the National Commission for Civic Education (NCCE), financial institutions, insurance companies, and SSNIT, should conduct public awareness campaigns to inform citizens about the processes and procedures for accessing estates. This will help reduce ignorance and illiteracy regarding these matters.
There is a need to revise or formulate new policies and laws to standardize the requirements needed to access the funds of deceased individuals, making the process easier and more equitable. An example is that the BOG, stakeholders, and financial institutions, specifically the banks should make a Point of Death or Payable on Death (POD) form available and accessible when creating a bank account.
The POD is where individuals with bank accounts can designate beneficiaries to inherit funds on the accounts after their deaths. People who opt for POD accounts do so to prevent beneficiaries from going through stressful bureaucratic processes to acquire probate or letters of administration in court if they pass away. There should also be the inclusion of national identification cards when taking information about NoK, beneficiaries, and trustees for easy identification. This will heal the identification crises leading to long investigative actions before benefits are paid.
Another way to reduce the stress that comes with the processes is the introduction of clear-cut timelines for accessing funds, including verification of identity, document processing, and case investigations. This will reduce delays and frustration for for beneficiaries while ensuring improved communication between financial institutions, insurance companies, SSNIT, and claimants at each stage of the process to reduce uncertainty and confusion.
ILAPI’s research on the subject matter further revealed how Ghanaians are reluctant to plan their properties. Encouraging individuals to create valid written wills can go a long way to avoid complications in the absence of clear directives and public education on the importance of wills can facilitate this.
Reforming Ghana’s inheritance policies and practices is essential to empower families, reduce poverty, and improve economic prosperity. The complexity of the existing system not only hinders beneficiaries but also deprives the nation of a potential economic uplift. By implementing these recommendations and working toward a more accessible and transparent system, Ghana can take significant strides in enhancing the economic well-being of its citizens and building a more equitable society.
By:
Sefakor Fekpe
Institute for Liberty and Policy Innovation (ILAPI)
Accra
