What happens to your government bonds when you die? Bank of Tanzania sets new rules

Investing in Treasury bills and bonds is becoming increasingly common in Tanzania. 

But there is a question that many investors and families rarely think about: what happens to those investments when the investor dies?

The Bank of Tanzania has now introduced new guidelines aimed at making that process clearer.

On June 23, 2026, the Bank of Tanzania published its Guidelines on Transfer of Deceased Investor Holdings, 2026, establishing a standard procedure for transferring government securities belonging to a deceased investor to the rightful beneficiaries.

The guidelines cover government securities as well as related coupon payments and other benefits attached to those investments.

This is important because government securities are not just pieces of paper.

They are financial assets that can form a significant part of an individual's savings and family wealth.

So, what happens when an investor dies?

The process essentially starts with the executor or administrator of the deceased person's estate.

The first step is to establish what the deceased actually owned.

The executor or administrator can approach the Bank of Tanzania with the necessary legal documents, including the death certificate, probate or letters of administration and identification documents.

For estates administered in Tanzania, the requirements also include either the deceased's written will or minutes relating to the appointment of the administrator.

Where a probate or administration grant comes from another Commonwealth jurisdiction, it must be properly resealed in Tanzania.

Once the documents are reviewed, the Bank of Tanzania can provide information showing the deceased investor's holdings.

This includes the value of the government securities and whether any of them have been pledged as collateral.

That last point is particularly important.

You cannot simply inherit securities that are pledged as collateral

If the deceased had used government securities as collateral for a loan or another financial obligation, those securities cannot simply be transferred to beneficiaries.

The guidelines require the executor or administrator to ensure that the encumbrance is released before requesting the transfer.

In simple terms, the investment may belong to the estate, but a creditor's legitimate interest in pledged securities must first be dealt with.

The court still decides who gets what

The Bank of Tanzania is not responsible for deciding how a deceased person's assets should be divided among family members.

If there is a disagreement about who should receive the securities, that dispute must first be resolved through the court.

The transfer can only proceed on the basis of a court-issued bequeath order specifying the beneficiaries and how the assets are to be distributed.

The Bank of Tanzania will verify the authenticity of that order before instructing the Central Securities Depository Registrar to transfer the securities.

This creates an important separation of roles: the court determines entitlement; the Bank of Tanzania implements the securities transfer.

There is one requirement families should not overlook

Perhaps the most practical part of the new guidelines is the requirement for beneficiaries to have their own CDS accounts.

Before the government securities can be transferred, all beneficiaries named in the relevant order must have CDS accounts.

If a beneficiary does not have one, they must register through a licensed Central Depository Participant (CDP) and provide the account details to the executor or administrator.

This means that a family could complete the probate process and obtain the necessary court orders, but still face a delay in transferring the investments if the beneficiaries have not opened their CDS accounts.

The Bank of Tanzania's existing securities framework already requires investors in government securities to be registered in the BoT Central Depository System, with registration conducted through Central Depository