The Post Office savings schemes are considered one of the most secure and reliable investment options in India. Millions of people across the country invest their hard-earned money in post office accounts, especially for retirement or long-term savings. But a critical question arises—what happens to the money if the account holder passes away? Who gets the funds, and how?
Understanding this process is crucial so that the family or legal heirs can access the funds without unnecessary delays or legal complications during an already difficult time.
When the account holder has already nominated someone (known as a nominee) while opening the post office account, the process of claiming the funds becomes relatively simple. The nominee needs to submit the following documents to the post office:
Form SBK 2 (Claim Form)
Death Certificate of the account holder
Identity Proof of the Nominee
If the total claim amount is less than ₹5 lakh, the post office generally does not require any additional legal documents. Once the documents are verified, the nominee may receive the amount either:
In cash
Through cheque
Or directly credited to their post office account
The entire process is usually completed within 7 working days, provided all documents are in order.
If the claim amount exceeds ₹5 lakh, then just being a nominee is not enough. In such cases, the nominee must also produce a Succession Certificate issued by a Civil Court. This certificate legally verifies that the claimant is the rightful heir to the deceased account holder.
Obtaining this certificate involves:
Filing a petition in court
Time-consuming procedures
Additional legal expenses
In cases where no nominee was added to the account, the process becomes a bit more complex. It also depends on the total amount in the account.
The family or legal heirs must submit the following documents:
Form SBK 2 (Claim Form)
Form SBK 3 (Indemnity Bond)
Form SBK 4 and SBK 5 (Affidavit and Disclaimer Certificate)
Death Certificate of the account holder
ID and Address Proofs of the legal heirs
Legal Heir Certificate from the local authority
If other legal heirs sign the disclaimer form (SBK 4 and 5), stating they relinquish their claim, then a succession certificate from the court is not required.
A Succession Certificate from the court is mandatory in such cases, regardless of any other submitted documentation. This ensures the money goes to the rightful legal heir(s).
If the post office account was held jointly and one of the account holders passes away, the surviving holder can get the account transferred in their name. They need to submit:
Form SBK 1
Death Certificate of the deceased co-holder
No further legal documentation is typically required, unless a dispute arises.
Always add a nominee when opening a post office account. It simplifies the claim process significantly.
Keep nominee information updated—especially in case of marriage, divorce, or other family changes.
Understand that a nominee is not the legal heir. In case of disputes, legal heirs can challenge the nominee’s claim in court.
Safeguard all account documents and proofs to avoid delays during emergencies.
Dealing with the death of a loved one is never easy, and financial complications can make the situation even more stressful. Being informed about the claim process for post office accounts, and ensuring nominations and documents are in place, can make a huge difference in ensuring a smooth and hassle-free settlement for the family.
