Three reasons why you should nominate your Next of Kin (NOK)
By Grace Njenga
The unclaimed Financial Assets Authority (Ufaa) in March 2021 revealed that unclaimed assets stood at Sh50 billion in December 2020. The figure shot from Sh43 billion in June, reflecting a growth of 19 percent. According to the agency, Unclaimed cash, shares and dividends surrendered indicated that investors including tycoons show disinterest in reclaiming the idle assets.
The probability is that the rightful owners are deceased, and the intended next of kin is not aware.
A next of kin is a person who is closely related to you. The living relative can be a child, spouse, parent, or sibling.
Many people, you and I included, make a mistake when filing official property/asset documents—the mistake of not naming a next of kin or not stating their correct details. The following are some of the reasons why a next of kin is necessary.
- To Help in Maximizing The Intended Purpose Of The Property or Asset
When you buy land or invest in an asset, the sole reason is to grow wealth. If you die or become incapacitated, and you had disclosed your investments, the next of kin see through your goal. At the same time, other financial assets can generate interests, dividends. This is so when your next of kin had been informed of the existence of these items. A next of kin ensures your intended vision is achieved.
- Helps In Inheritance
You aspire to leave something to your next generation. Disclosing a next of kin will see this through. Your dependents benefit from your assets for their lifetime. You can attest that the next of kin suffer after the demise of their provider. Inheritance issues are sorted when you nominate your next of kin. Disclosing information to your next of kin on how your assets will be shared reduces conflicts.
- Helps in Protection Of Your Assets/Property
You protect what you own. You protect that which you profit from. Disclosing to your kins a particular property belongs to them goes a long way in maintaining the same. Sometimes back, the government consolidated some pieces of private land. The land didn’t have any known owner, and neither was there a trace to their next of kins. Had the next of kin been informed of the existence of the same, they would have protected it from being nationalized.
Don’t Be Afraid To Disclose It All
You might have seen kins terrorizing their providers/guardians after realizing what they were inheriting from them. At times as an investor, you can be worried about what might happen to you after disclosing your assets. It’s good to know that you can share your property/asset information with a lawyer. Who, upon an eventuality occurring to you, will inform your people. Be keen to update your next of kin when you feel the need.
Very true. “Be keen to update your next of kin when you feel the need.”
Great article Grace. Kudos!
Absolutely true.Nominate and Inform your next of kin on such assets