Life After Death: Why Estate Planning Matters for Financial Inclusion

Over the past decade, we’ve witnessed remarkable progress in financial inclusion across low- and middle-income countries. Millions of people now have access to formal financial services that once seemed out of reach - mobile money, digital wallets, microfinance loans, savings accounts. But one question continues to go largely unaddressed: What happens to those financial gains when the accountholder dies?

In many parts of the world, the answer is troubling. Without estate planning, which includes tools like wills, named beneficiaries or succession agreements, assets often become inaccessible, contested, or simply vanish into bureaucratic limbo. This oversight not only undermines financial resilience but also exposes a critical blind spot in the financial inclusion agenda: continuity.

A lifetime of progress at risk

Estate planning is typically perceived as something reserved for the wealthy. But in truth, even small amounts of wealth, such as land, savings or business inventory, can make the difference between stability and setback for low-income families. These assets, regardless of size, need to be protected for future generations. 

Yet when a breadwinner dies without a plan, their assets frequently go unclaimed or are taken by unintended parties. Widows may lose access to jointly owned property. Family-run businesses often collapse because there’s no documented succession. In such cases, a lifetime of progress can unravel in a matter of weeks.

Take the story of Peter, a motorcycle taxi operator in Uganda whom I got to know when I offered financial literacy sessions to his savings group. He had built up about $1,200 in savings over three years using a mobile wallet linked to his mobile money account. When he died in a road accident, these savings would have been a significant help for his wife and teenage son, who struggled financially without Peter’s income. However, they were unable to access these funds. The mobile operator required a court order for release, and the family couldn’t afford the legal process. The funds remain frozen to this day, two years later. 

The implications go beyond individual families. When a growing number of people are participating in financial systems, but lack mechanisms to ensure their assets can be passed on, we create systemic fragility. Trust in financial institutions weakens, gender inequality is exacerbated, and families risk being pushed back into poverty.

So why is estate planning still overlooked in financial inclusion work?

Social norms and bureaucratic obstacles 

For one, cultural norms around death often make the topic uncomfortable. In many societies, discussing one’s own passing is considered taboo or disrespectful. In others, customary inheritance practices still dominate even where statutory laws exist to protect women and children. Then there’s the accessibility challenge: legal services are often expensive, bureaucratic, or concentrated in urban centers, far from the people who need them most.

But none of this makes estate planning any less essential. In fact, it highlights the urgent need for solutions that are affordable, culturally appropriate and integrated into financial services and literacy programs.

Promising practices for integrating estate planning into financial inclusion

Some innovators are already rising to the challenge. In Kenya, online mobile-based will writing tools, such as Legalit, have emerged, offering simple, affordable estate planning services via smartphone. In Uganda, legal empowerment organizations, like Barefoot Law, are working alongside savings groups to help community members document property ownership and designate beneficiaries. A few microfinance institutions are incorporating estate planning into their group trainings, particularly for women’s lending groups.

The development community, including financial regulators, digital finance providers and multilateral institutions like the World Bank, has a critical role to play in scaling and normalizing estate planning within the financial inclusion ecosystem. That means:

• Promoting legal awareness of succession rights as part of financial literacy campaigns.
• Encouraging product design that includes beneficiary designation options for savings and investment.
• Simplifying inheritance and asset transfer processes through regulatory reform and digital platforms.
• Partnering with legal aid providers to bring services closer to low-income clients.

We also need more data. How many mobile wallet users have named a beneficiary? How many small business loans go unclaimed after a borrower’s death? How many widows lose access to assets due to a lack of documentation? Without visibility, the issue remains hidden even as it affects millions.

Empowering low-income households to plan for future generations

Ultimately, estate planning is about dignity, protection and resilience. It ensures that financial inclusion doesn’t end with an individual, but lives on through their family and community. As we look toward the next phase of inclusive finance - one focused on impact, not just access, estate planning must be part of the conversation.

Because when people gain financial tools, they don’t just want to prosper in life - they want to leave something behind.