What happens to your money when you die?

Social media platforms, Facebook and twitter were awash with comments expressing disdain, confusion and requests for a hint of accountability for their loved ones’ money once they pass.
Presidential press secretary, Ms Lindah Nabusayi was the cause of provocation.
34 minutes after midday on Monday last week, Ms Nabusayi took to twitter, an inquiry about the whereabouts of money on a mobile phone account once someone dies.
“I erroneously sent money meant for my niece to her late father’s number. MTN Uganda says I should get letters of administration of my brother’s estate, his death certificate, local council letter, police letter or I cannot get the money back. Where does this money go?” she inquired on a post via twitter.
MTN replied; “…let us know how long this number has not been in use and inbox the number itself plus its registered name for support.”
Later in the day, the telecom asked for the details of the sender’s telephone number, date of the transaction and amount.
On Tuesday, at 9a.m, she retrieved the money.
But after all this, one must wonder: What happens to the people without the ability to attract the attention of a telecom?

What happens?
According to Airtel Uganda, the telecom needs a claim from the next of kin or an assigned person, copies of letters of administration and national identity card of the claimant before it can reverse a transaction from a deceased’s account.
“This is a 48 to 72-hour verification and reimbursement process if all documentation is okay,” Ms Sumin Namaganda, Airtel Public relations manager says.
She adds; “If an account is dormant for more than 180 days, the process begins and the account is blocked. After a further 90 days, the funds will be moved to a dormant suspense account from which one can claim their funds in writing together with a copy of national ID.”
There is no known information of how much the telecoms currently possess as unclaimed funds on dormant mobile money accounts.

No law
In fact, contrary to the banking sector which is required to publish dormant accounts to the public, there is no legal framework binding telecoms to this rule.
Bank of Uganda (BoU), the regulator of financial services in the country, says the national payments bill which is expected to address regulatory gaps in the mobile money sphere among other things, is currently before parliament.
“It is with Parliamentary committees and should go for plenary in coming weeks. I think by end of March, it should have been passed and assented to,” Dr Adam Mugume, Executive director for research, BoU, says.

Money in the Bank
In regard to the banking sector, there is a different ball game, more black and white.
Regulated by BoU, banks are required to occasionally publish unclaimed bank balances on dormant accounts.
Customers are then given a period to claim the monies. Like the telecoms, banks require a claimant to submit proper documentation indicating you are the next of kin or a will.
“Usually when a person does not leave a will or other documentation, it is difficult. Because a bank account is a contract between a bank and account holder. This contract does not allow third parties. Only if the depositor explicitly left instructions that can be authenticated by courts of law,” he explains.
The money from the commercial bank if not claimed, is sent to Bank of Uganda which then sends it to the consolidated fund.
However, BoU says no money has been transferred to government yet.
“An account is dead after 10 years of being inactive and the bank has run adverts regarding the inactivity. So far, no money has been credited on the consolidated account because some claimants still come to BoU,” he says noting that once credited to the consolidated account, it would require appropriation by Parliament to pay a claimant.
A total of Shs28.2b is currently possessed by BoU under the dead accounts.
In his experience, Dr Mugume says, Ugandans do not like wills because they are interpreted as bad omen.