A) Who Qualifies as a Child under the Intestate Succession Act, 1985 (PNDCL 111)

Under Section 18 of the Intestate Succession Law, 1985 (PNDCL 111), as amended by the Intestate Succession (Amendment) Law, 1991 (PNDCL 264), a “child” is broadly defined to ensure equitable distribution in succession matters, which is critical in banking for handling deceased customers’ accounts without disputes, aligning with BoG’s Corporate Governance Directive 2018 for ethical estate management.

• Natural Born Children: Any person born to the deceased, whether in or out of wedlock, qualifies as a child. This includes legitimate and illegitimate children, promoting inclusivity.
• Adopted Children: Legally adopted children under the Children’s Act, 1998 (Act 560) or prior laws, are treated as natural children for succession purposes.
• Children En Ventre Sa Mere: A child conceived but not yet born at the time of the intestate’s death qualifies if born alive subsequently.
• Stepchildren or Foster Children: Generally, do not qualify unless legally adopted; however, children from previous marriages are included if they are biological offspring.

In practical banking at institutions like GCB Bank, verifying child status via birth certificates or court orders prevents tort claims of conversion when releasing funds, especially post-2017-2019 cleanup where estate mishandling contributed to collapses like UT Bank. This definition integrates into modern practices, such as digital account freezes upon death, ensuring compliance and profitability through reduced litigation.

B)  Distribution of the Residue of Mrs. A’s Estate (12 marks)

Mrs. A died intestate in 2006 with a residue of GHS60,000, survived by spouse (Mr. A), four children (two with Mr. A   and two daughters from previous customary marriage), and her father (mother deceased). Distribution follows Section 5 of PNDCL 111, as no house is mentioned, and household chattels are not part of the residue. This scheme protects dependents, aiding banks like Ecobank Ghana in advising customers on estate planning to avoid disputes, supporting BoG’s sustainable banking principles for family financial resilience post-DDEP recovery.

Since there is a surviving spouse and children:

• Total Beneficiaries: Spouse (Mr. A), four children (all qualify under Section 18, including daughters from previous marriage as biological children), one surviving parent (father), and the customary family (extended family members).
• Distribution Proportions (Section 5):
  • Surviving spouse: 3/16 of the residue.
  • Surviving children: 9/16 of the residue, shared equally among the four children.
  • Surviving parent(s): 3/16 of the residue (to the father, as mother is deceased).
  • Customary family: 1/16 of the residue.
• Calculation:
  • Residue: GHS60,000.
  • Spouse (Mr. A): 3/16 × 60,000 = GHS11,250.
  • Children (total 9/16 × 60,000 = GHS33,750; each of the four gets GHS33,750 / 4 = GHS8,437.50).
  • Parent (father): 3/16 × 60,000 = GHS11,250.
  • Customary family: 1/16 × 60,000 = GHS3,750.

In day-to-day operations, banks like Stanbic Bank Ghana require letters of administration from the High Court before distribution, ensuring BoG approval feasibility under Act 930. This prevents issues seen in global comparisons, such as Barclays’ handling of blended family disputes, and emphasizes ethical practices by protecting all biological children equally, reducing digital banking vulnerabilities in estate transfers under Act 987.