If a subscriber to public provident fund scheme has died then the nominee as specified in the application form will get all the payments that is laying subscriber’s account.
It’s risky for the nominee to continue the Public Provident Fund account of the deceased person after the death because the nominee can not appoint another nominee.
Where nominee is a minor, amount laying in the deceased person’s public provident fund account shall be payable to the guardian of the property of minor appointed by a court, or where no such guardian has been so appointed, to either parents of minor, or where neither parents are alive, to any other guardian of minor.
Where there is no nomination in force at the time of death of subscriber, amounts up to Rs. 1, 00, 000 will be paid to legal heirs on applying in Form G and the balance left out will not be paid to such legal heir.
However on death of the subscriber, the balance in Public Provident Fund account, if not withdrawn continues to earn tax-free interest. No partial withdrawals are permitted by the nominee.
In case of joint nominee, nominees are treated as joint holders and for closing Public Provident Fund account they need to apply together. Cheques will be issued in the joint name, so both should have a joint bank account to withdraw the amount.
In the interest of investor, it is always advised to nominate any one person while applying public provident fund (PPF) scheme.
If you have not nominated any one so far then you can do so by visiting your bank or post office where you have your Public Provident Fund account.
After marriage, if you want to nominate your wife for Public Provident Fund Account then you can do so by changing your nomination. For this please contact your post office or Bank where you have your Public Provident Fund (PPF) account.
Nobody knows when he or she will die so we always suggest to have a nominee so that the PPF balance and other bank account balance will be get paid to the nominee on the death of subscriber.
Hi, I am in a situation where I opened a PPF account for my son. Unfortunately my son passed away last year and since then I have been spun around by the BOI folks as regards to his PPF amount withdrawal. By law, there is *no* nomination allowed for *minor* subscribers and now I have been asked to furnish a ‘Succession Certificate’ from the local civil court (which can cost ~Rs 60000 and will take about 6 months to obtain)! If they had allowed me to put either of the parents’ names in the Nomination section, I could have been saved all this unnecessary anguish/waste of time.