PPF Rules: Public Provident Fund is a very popular scheme for safe investment in the country. Lakhs of investors invest in this scheme to get tax free returns and create a retirement corpus.
In this scheme, you get partial withdrawal, nomination benefits and many other facilities. But if an account holder dies before the maturity of the account, then what will happen to his account? Let us know what are the rules of EPFO (Employee’s Provident Fund Organization) in such a situation.
What will happen in case of death of PF account holder?
Whenever a PF account holder dies, his PF account remains operational until his nominee or legal heir withdraws the entire money from his account. This account cannot be continued. This will continue only as long as there is money in it. If more amount is deposited after the death of the subscriber, interest will not be earned on it. After the death of the account holder, the nominee does not need to wait for the completion of 15 years of the account, he can withdraw the money by filling the death claim form and necessary documents along with it.
How can the nominee withdraw money?
The nominee of the PF account holder can withdraw the entire money from the account by submitting the necessary documents. He has to give Form G and death certificate of the subscriber for this. In some cases, it also happens that the PF subscriber has not made any nominee. In such a situation, his legal heir can file a death claim.
But along with the death certificate, he will also have to provide a succession certificate or an attested copy of the Probate of Will from the court. Yes, there is also a rule that the legal heir can claim up to 1 lakh without a succession certificate. Also, even if the account holder has made someone else a nominee, the valid legal heir can claim the money in the PF account by putting in the succession certificate.
The nominee or the legal heir filing the death claim should know one thing that if there is any credit or loan outstanding on the account of the subscriber, then the claim will be deducted from the process and then the claimant will get the rest of the money.
