First time I'm hearing about this. Thanks for the piece of information.
This is the kind of information the fraudulent institution should educate their clients on, but they won't because they're looking for every means necessary to scheme money off their customers.
I felt your next of kin then gets what's in the account at the time of death if they can provide legal evidence that the owner of the account has truly died.
N/B: no one is dying anytime soon but death is inevitable.
No one prays for death (except if you're suicidal) but we should always prepare for it. In the same way, no one prays for negative things to happen but we also have to ensure our property and lives.
People should try to write their wills and put their affairs in others. Doing these things doesn't mean you're calling death. It means you're just preparing for the inevitable.