Tuesday, October 18, 2016
In the event of the death of a Public Provident Fund (PPF) subscriber, any money left in their PPF account is passed on to the nominee(s) or the legal heir(s). The paperwork and documentation for the claim vary based on whether a nomination has been registered by the PPF subscriber or not. Here’s how to go about filing a claim.
Nominees or the legal heir of the deceased PPF subscriber are required to submit a duly filled Form G to the bank or post office where the the PPF account was held.
If the PPF subscriber had registered a valid nomination, the nominee will be able to claim the proceeds from the account by simply filing the Form G, along with proof of death of the subscriber (death certificate).
If there is no nomination in force, the claim can be made by the legal heirs of the de -ceased subscriber. In addition to death certificate, the legal heirs also have to submit a succession certificate or letters of administration along with an attested copy of probate of will issued by a competent court.
Amount up to Rs 1 lakh
If the amount standing to the credit of the PPF account is up to Rs 1 lakh, the claim may be processed after submission of the following documents:
*A letter of indemnity.
*A letter of disclaimer on affidavit.
*A certificate of death of subscriber on stamped paper.
On receipt of application and documents from the nominee(s), if these are found to be in order, all amounts standing to the credit of the PPF account of the deceased subscriber will be repaid to the nominee(s) by the bank or post office. Adjustments will be made according to interest on loans taken by the subscriber.
Points to note
*In case of death of one of the nominees, the surviving nominee(s) will also have to provide proof of death of the deceased nominee.
*The balance in the PPF account continues to earn interest till the end of the month preceding the month in which payment of the deposits stopped.
Source:-The Economic Times