During a process of auditing of our members register, we have realized that majority of members have not updated some of their important information held by the society in a very long time. This includes details about next of kin, phone numbers, email addresses, tax exemption etc. It is a requirement that members update this information at least once in every two years. However, not many have headed to this rule. This information is very critical and may come in handy to facilitate access to your funds in the event of incapacitation or even death as we have witnessed over the last couple of months.
With regards to the next of kin nominations, here are some frequently asked questions, in case you could be asking yourself the same:
What is nominee form?
The SACCO asks their members to make nominations which mean that they should provide details of persons to whom the money lying in their accounts should go in the event of their death. Nomination can be made when joining as a new member or on a separate form indicating the name, percentage and address of the nominee.
Who can be nominee?
A nominee can be any person appointed by a member to receive proceeds from their account in case of his or her death. Generally, children, spouses, parents, and siblings are chosen as nominees. Remember that being a legal heir does not automatically make anyone a nominee. The person has to be assigned by the member when joining the SACCO or at a later stage. It is suggested that you decide your nominee very carefully. It should be a person who can be trusted with the money. This is why it is advisable to nominate a close family member, but the decision solely lies with the member and not the SACCO. It is important to note that a nominee is somebody who will receive the asset upon the death of the member. A legal heir means any person, male or female, who is entitled to succeed to the property of a deceased member under a will or as per the succession laws.
Can the nominee be canceled or changed?
Members can cancel or change the details or their nominees at any point of membership. As a member, you have the right to change your nominee multiple times as per your discretion. The nomination form can be downloaded from SACCO website or you can take it from the office. You need to update the personal information of the nominee by filling the form and submitting it to the SACCO office, physically or electronically. Once the nominee is changed, you can request the office for a written acknowledgment. It will leave no room for confusion when the nominee needs to file a claim.
What happens to the money in your account when you die?
When you die with a nomination in place, any money held in your SACCO accounts will be distributed according to your wishes depending on the percentages allocated to your nominees. If there is no nomination, the SACCO will require the heir to present a Will stating that they are legal heir to the deceased member’s funds. Without a written Will, the funds will be transferred to dormant accounts after which they are transferred to government’s Unclaimed Financial Assets Authority (UFAA) under the provisions of the Unclaimed Financial Assets Act No. 40 of 2011 hence denying your dependents an opportunity to benefit from your hard work.
To help members update these important records, the Kanisa SACCO management has initiated a mandatory information update exercise to ensure compliance by all members. From 1st November 2020 to 28th February 2021 every member will be required to submit their updated information to be captured as part of the details in the members’ register.
To submit your information, visit this link https://forms.gle/ymTCkEwfuUkvQvWd9 and fill in the form. Please note that this is very important, and all members are urged to comply. Once updated, this information will be accessible on the member’s profile on the portal and mobile app for verification.
