PPF: Nominees and Legal Heirs can Claim a PPF account on Death of Subscriber; Know How?

The Public Provident Fund is a popular long-term savings and investment plan offered by the government to help individuals build a safe and secure financial future. It provides tax benefits and attractive interest rates.

Here’s how nominees or legal heirs might claim a PPF account following the subscriber’s death.

Who receives the PPF proceeds?

Typically, the nominee receives the proceeds if the account holder dies. If no nomination is made, the deceased’s legal heirs have the right to claim the PPF amount under succession regulations.

Documents required to claim the PPF proceeds

The initial stage in the claim process is to acquire the following documents:

Death Certificate: A certified copy of the PPF account holder’s death certificate.

Claim Form: Form G is the application form for claiming the subscriber’s PPF balance after death.

Identity Proof: Identification documents for the nominee(s) or legal heir(s).

Proof of Relationship: If the claim is brought by legal heirs, they must provide proof of their relationship with the deceased.

Claim Form Submission

The nominee or legal heir must complete Form G, stating the deceased’s name, PPF account number, and claimant information. The form comprises a declaration and an indemnity bond, particularly for several claims or large sums. Form G and other documentation should be submitted to the bank or post office where the PPF account is held.

Claim Processing

Once verified, the bank or post office will process the claim and close the PPF account. It calculates the collected amount, including interest, up to the subscriber’s death date and transfers it to the heir’s account.

Points to Note:

Interest is paid up until the month before the month of closure.

The PPF sum is tax-free for the nominee or successor.

If there are many nominees, the PPF balance is distributed using the percentage provided in the nomination.