THE NEXT OF KIN ILLUSION: RETHINKING PROPERTY RIGHTS FOR ECONOMIC PROSPERITY IN GHANA

THE NEXT-OF-KIN ILLUSION: RETHINKING PROPERTY RIGHTS FOR ECONOMIC PROSPERITY IN GHANA

By Anacetus Zabari Jnr

In Ghana, some of the most painful family disputes do not begin in courtrooms; they begin with a name casually written on a form. A hospital record, a bank account opening slip, a pension document in each case, the line marked “next of kin” is often filled with quiet confidence, as though it settles the question of inheritance once and for all. It feels official. It feels decisive. It feels like protection.

But that confidence is dangerously misplaced.

Across homes and institutions, a widespread assumption persists: that the person named as next of kin automatically becomes the rightful owner of a deceased person’s assets. This belief is not grounded in law, but in habit. And when death inevitably tests this assumption, the result is not clarity, but conflict. Families fracture. Assets become locked in bureaucratic processes. Livelihoods suffer under the weight of avoidable disputes.

At the heart of this crisis is a fundamental misunderstanding of property rights. In reality, the designation of a next of kin is purely administrative, serving as a point of contact rather than a conduit of ownership. Yet the gap between legal reality and public belief has created fertile ground for confusion, exploitation, and economic loss.

This gap has real consequences. Inheritance poverty does not arise because wealth is absent, but because it is inaccessible. Many rightful beneficiaries are unable to claim assets due to legal complexity, administrative bottlenecks, and weak institutional coordination. What should have been a transfer of stability becomes a source of vulnerability.

Recent data highlights the scale of the issue. According to the Bank of Ghana, over 1.4 million dormant accounts were transferred into state custody between 2021 and 2024, with unclaimed balances reaching significant levels across local and foreign currencies. These are not just idle funds; they represent dead capital, removed from productive use. For many families, especially those in low- and middle-income brackets, access to such resources could determine whether they recover from loss or descend into financial distress.

The problem is structural.

First, there is a clear disconnect between law and public understanding. Ghana’s legal framework, through statutes such as the Administration of Estates Act and the Intestate Succession Law, requires formal processes like probate or letters of administration before assets can be transferred. The courts have consistently reinforced this position. In cases such as In re Estate of the Late Baffoe Bonney and Boateng v. Boateng, the courts affirmed that entitlement to a deceased person’s estate must follow due legal process, not informal designations like next of kin. Yet public perception continues to treat next-of-kin designation as sufficient proof of ownership.

Second, the administrative system itself is cumbersome. Beneficiaries must navigate fragmented procedures across institutions that often do not communicate with one another. Verification processes are slow, documentation requirements are demanding, and delays are common. In many cases, individuals simply give up.

Third, institutional incentives are misaligned. While systems efficiently absorb dormant funds into state control, they do not provide equally efficient pathways for returning those funds to rightful owners. This imbalance gradually erodes public trust and discourages engagement with formal financial systems.

But this situation is not inevitable; it is the result of design choices and it can be corrected.

Other countries have shown that inheritance systems can be structured to prioritize both legal clarity and accessibility. Legally binding beneficiary designations, supported by digital verification systems, allow assets to transfer directly and efficiently upon death. Such models reduce reliance on lengthy court processes while maintaining safeguards against abuse.

Ghana can adopt similar reforms.

First, there must be legal clarity. The law should clearly distinguish between administrative designation and beneficial ownership. It should explicitly differentiate “next of kin” from legally enforceable beneficiaries and provide unambiguous guidance on the legal status of each. Individuals should be allowed to designate beneficiaries whose claims are recognized without unnecessary procedural hurdles, particularly for financial assets.

Second, digital infrastructure must be strengthened. A centralized National Beneficiary Registry, integrated with the Ghana Card system and financial institutions, would streamline verification and reduce delays. Technology can transform what is currently a manual and fragmented process into a seamless system.

Third, financial sector regulation must evolve. Institutions should be required to maintain updated beneficiary records and integrate with national systems that enable faster claims processing. Automation especially in death verification and notification can significantly improve efficiency.

Finally, public education is essential. Many Ghanaians continue to rely on informal assumptions about inheritance. Without correcting these misconceptions, even the most well designed reforms will fall short. Citizens must be encouraged to engage in proper estate planning, including writing wills and formally designating beneficiaries.

The issue ultimately comes down to certainty.

A system that governs the transfer of assets must be clear, predictable, and accessible. When it is not, the consequences extend beyond individual families; they affect economic stability, wealth distribution, and national development.

Ghana stands at a critical point. The persistence of the next-of-kin misconception is not just a legal issue, it is an economic one. Addressing it offers an opportunity to strengthen property rights, protect families, and unlock capital that is currently trapped in inactivity.

A name on a form should not determine the fate of a lifetime’s assets, the law should.