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

May be you did not get the gist well. Let me break it down for you. You need to get a lawyer that will assist in getting the letter of administration. Here is the process

1. The lawyer through the High Court prepares a bank certificate which will be submitted to the bank by the approved solicitors or Next of kin to the deceased. The bank provides the balance on the account as at the date of death(in the case of a salary earner( and stamps it

2. The bank certificate is returned to the probate registry for processing. The probate registry orders the bank to raise a draft of an amount usually not more than 10% of the accrued amount in the deceased account as probate fees. Which is done and issued to the solicitor.

3. Once the draft is cleared, It takes up to 2 months at the earliest for the letter of administration to come out. This is what the next of kin or beneficiaries uses to claim the remaining money in the deceased account. Although they may also need to tender KYC documents to back this up.

In essence its not the bank thats taking 10%, the 10% is probate fees that usually goes to the High court in the state where the letter of administration is being processed.

You are stupid for saying some men are stupid. Period. Secondly, greediness of many wives and untrained children makes some men scared of disclosing their assets. I have seen a lady that entered their fathers parlor and suddenly said... If daadyy even die today, what can we inherit? This was a man that's not even 55yrs as at that time. Greediness greediness.

seniormallam:
Very true, going to the state government pox,
Baba just thank God, some stingy father's won't even let you know they have account with such money then they'll now die suddenly, it's either one bank staff move the money or after 10years the money get moved to CBN.
Some men are stupid sha, how can you decide to dash government your life savings instead of disclosing your accounts to your wife or child even if they don't know the balance at least they have the number

This is why Insurance savings plan is better than Bank savings .

The next of kin gets the total sum assured of the policy holder at the demise of the policy holder ..... Insurance


10% goes to the bank and in some cases , 100% goes to the bank ..... Bank


choose wisely people !

just contact me for more details and Insurance advices

check my signature !

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 10% is for the state and not the bank.
You can't escape it unless you have the deceased ATM card or bank app pin.

We just got letter of administration from a court within one month and we paid #25000, nothing like 10% to be paid either now or later..about presenting the remaining papers to the bank for final processing.

OgbanjeProphet:
When next you want to open an account with a nigerian bank, read their terms and conditions very well...

Learn to read every damned word on the papers presented to you before you sign them. Because in them contain their very right to withhold the 10 percent...

And if you don't like one of the terms, what do you do.

Must of the terms are similar.

I think it's the court that will take charges not the bank

If it's a checking account the bank should only take COT

If not report to
1. The banks HQ, if no action
2. CBN consumer dept

Omihanifa:
The percentage varies from 5% to 10% depending on the State and it's going to be paid to the state government where the letter of adminstration is made and approved

It is not the bank that charge percentage on amount. It is the court that issue the Letters of Administration (LA).

In most cases, it is time to make payment of the LA and the beneficiaries cannot raise the amount, the Court will usually direct the Bank to debit the account in that sum in favour of the State Government.

So it is only in that instance that the Bank will be entitled to debit the account. The Bank is not a beneficial of the deceased Estate so they have no right to charge the account.

psalmistkakah:
We just got letter of administration from a court within one month and we paid #25000, nothing like 10% to be paid either now or later..about presenting the remaining papers to the bank for final processing.

You will still pay it.

Many people are talking from the point of ignorance on this platform and they are not ready to learn.

Many illiterate here it’s a charges in most countries 10 percent belong to government open joint account or your ATM pin tell your next of kin the code

Small thing and people be calling CBN up and down, without an iota idea about something, till you realise the CBN is the chief master mind behind all the policies on the way things are to be run

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

The 10% is withholding tax on which will be remitted to the coffers of the state government.

But if that has been paid to the courts then ask the bank for what reason are they deduction. If they cannot, please get a lawyer to write them to get better clarification on that.

Other than the taxes nothing else.

Fathers and potential fathers, save your family the stress after you are gone.



Get an ATM, give it to your wife.



This bank is even straight forward, some other banks will frustrate you with come today, come tomorrow.

My friend's mum died, though she didn't tell me the amount her mum saved. But she said the insurance company said they'll deduct 700,000 from the woman's money before paying her family.

BabaOwen:
No, they don't.

Write about it to the CBN, so far the deceased no owe dem any money.

as a matter of fact they do. It's the law but it belongs to the government.

You should never have reported it to the bank. That was a mistake

BabaOwen:
No, they don't.

Write about it to the CBN, so far the deceased no owe dem any money.

Who told you? Lol, it is a legal process in court, it enacted by the federal government, not only 10% but also 10% of your land property belongs to the federal government , you better wise up, most people in nairaland are ignorant of many things. This is what I told someone last month on nairaland.

Zamakas:
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.

Can you give me a link to where you saw the news of UK collecting 90% of the estate as probate fee?? From what I've gathered, estates below 50,000 pounds don't pay probate fee and the highest they charge is 6,000lbs for estates worth 2million n above

psalmistkakah:
We just got letter of administration from a court within one month and we paid #25000, nothing like 10% to be paid either now or later..about presenting the remaining papers to the bank for final processing.

Paid #25,000 to who exactly? The only charge I'm aware of is the 10% on the total estate value. Does that mean that the estate value is 250,000?? And LOAs usually take much longer time to process

The 10percent is capital gain tax check up on the tax law

Omihanifa:
The percentage varies from 5% to 10% depending on the State and it's going to be paid to the state government where the letter of adminstration is made and approved

Are you speaking from experience or hearsay?

Kingnelson9:
no matter what , 10% or 5% is too much ! goto the bank,meet the manager one on one if the percentage cant be less than 4% sue them.

Lol...ignorance is bliss indeed. That 10% ain't coming down for anything oga as its not bank's money but state's own

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.

The people who want to go astray will not listen to you. They will have stories of the UK collecting 90%, and convince Nigerians to part with 10%. You should have allowed them to wallow in their ignorance.

On this thread it has become obvious that many Nigerians who comment on this forum are ignorant story peddlers. They know nothing.

See this mumu

optimus106:



Baba,no mind them...

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

franugo:


Paid #25,000 to who exactly? The only charge I'm aware of is the 10% on the total estate value. Does that mean that the estate value is 250,000?? And LOAs usually take much longer time to process

On reaching there, they did not tell us anything like estate value, they only tell us that we are paying #25000 for the LOAs and they ask for for letter of introduction we collected from my dad employee, the original one...in that same #25000 They paid for newspaper publication...within a month it was ready no stress at all...may be it depend on the state..

I'm going through the same process no, almost done, the the process is long oh,the banker is just giving you a clue of what will be done.the government will be the one to take the percentage oh.

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 legal. Your friend did not get the information correctly. Bank is not taking any money. Once the letter of administration is issued for the deceased estate, 10% (varies between 5 to 10 depending on the state) of the estate must be paid to the state judiciary upon which the judiciary will put a stamp on it after the bank has boldly written the total estate. On presentation of receipt to bank, the estate will be transferred accordingly.

In the judiciary, your friend can talk with the judiciary officer to assist and cut off some. For instance, if the 10% amounts to N6million in the case where the deceased left N60m, he can plead to pay N2.5. If he finds favour in the judiciary officer, na him luck. Nigerian system is already messed up. But if he does not, he should go and find the N6m given that he will pay first before the N60m can be transferred to him.

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 money belongs to Govt! It is the law. The law said banks will deduct it and hand it over to govt

saseremichael:
Hurray!!!
Nigeria is 60 Years old!
Celebrate the Diamond Jubilee with us!
Happy Independence Anniversary in advance.
www.instagram.com/vohnigeria

In fact, if I tell you what is in my mind, . . .

So you still get mind to sell polo shirts when the government is imposing tax on Nigerians?

If anything, it is to protest not celebrate.

tonididdy:
Fathers and potential fathers, save your family the stress after you are gone.



Get an ATM, give it to your wife.



This bank is even straight forward, some other banks will frustrate you with come today, come tomorrow.

You still need a will, especially if you have investments that pays dividends into the account regularly.

Bank ask for account update once in 3 to 4 years, a dead account holder can't update his account

Hello guys, I'm also in the same shoe please I need assistance