How Can Family Members Claim A PPF Account On The Death Of The Subscriber?

Upon the demise of a subscriber to a public provident fund (PPF) account, if amounts are standing to his credit on death, then the process for claiming these amounts differs basis whether the subscriber has appointed a nominee during his lifetime or not. The process if there is a nominee is more straightforward, as explained below, and therefore it is always advisable to appoint nominees for the PPF account.

If There Are Nominees 

“If one or more nominees have been appointed by the subscriber during his lifetime, then after the subscriber’s death, the nominee must make an application to the bank or post office together with proof of death of the subscriber (such as a death certificate) and Passbook of PPF account of the subscriber, to claim the monies,” says Shaishavi Kadakia, Partner, Cyril Amarchand Mangaldas. 

It is noteworthy that when the nominee receives the amount, he/she does not become the beneficial owner of these funds, and he/she must hold these for the benefit of the legal heirs of the subscriber.

“If there are joint nominees, they should apply together. If any nominee is dead, then the surviving nominees may follow the above process, but in addition to proof of death of the subscriber, they must also furnish proof of the death of the deceased nominee,” says Kadakia. 

If any nominee is a minor, the subscriber may appoint an adult to receive the PPF amount in the event of the subscriber’s death during the minority of the nominee.

“For this purpose, legal heirs are determined by the Will of the deceased. If there is no Will, then the legal heirs will be determined as per the personal law of the deceased,” says Kadakia. 

Without Any Nomination 

If there is no nomination in force at the time of the subscriber’s death then the legal heirs of the deceased would need to make the application for claiming the amounts. “If the PPF balance is more than Rs 1 lakh, then the legal heirs must submit various documents which makes the process more cumbersome,” says Kadakia. 

The death certificate of the account holder shall be submitted to the bank or post office where the account is held. “A succession certificate, letters of administration, or probate of Will from a competent court shall be submitted. Next one needs to submit Form G and the death certificate to the account-holding institution at the bank or post office where the account is held,” says Kunal Sharma, Partner, Singhania & Co.

The institution shall authenticate the submitted documents. Upon successful verification, the PPF amount will be credited to the nominee's account, deducting any outstanding loans.

“For claims up to Rs 1 lakh, additional documents that need to be submitted are a letter of indemnity, death certificate on stamped paper, letter of disclaimer on affidavit, and a general affidavit,” says Sharma. 

Then you need to submit Form G and the death certificate to the account-holding institution at the bank or post office where the account is held. Submit all documents to the account-holding institution for verification. Upon approval, the claim of up to  Rs 1 lakh will be paid to nominees or legal heirs.