When an account holder of a post office dies, the funds deposited in savings schemes like Post Office Savings Account, Monthly Income Scheme (MIS), National Savings Certificate (NSC), or Senior Citizens' Savings Scheme (SCSS) can be received by the legal nominee or heir. But depending on whether there was a nomination or not, the procedure is different. India Post has prescribed certain steps in its Savings Bank Control Organisation regulations. Here's what happens in both cases:
If there is a nominee registered
If the account holder has nominated a person, then the nominee may make a simple claim. The nominee has to submit Form SBK 2 and a death certificate of the account holder and identity proof. The post office generally disposes of such claims without demanding a succession certificate, particularly if the claim is for an amount below ₹5 lakh.
The money can be received by the nominee in cash (within the allowed limit), cheque, or credited to his/her own post office account. In general, the claim is paid within seven working days if the documents are correct.
In case of lack of nomination
In case the deceased did not leave behind any nomination, the legal heir or heirs must take a more elaborate procedure. There are two types here:
1. Claims up to ₹5 lakh:
Here, the claimant must file:
· Form SBK 2
· Letter of indemnity (Form SBK 3)
· Affidavit and Letter of disclaimer (Forms SBK 4 and SBK 5)
· Death certificate
· Identity and address proof
· Legal heir certificate (given by local authorities)
The postmaster can sanction the claim on producing documents. No civil court succession certificate is necessary if all legal heirs produce the disclaimer.
2. Claims above ₹5 lakh:
A succession certificate from a competent civil court must be produced by the claimant. This is time-consuming and might also entail legal charges and court hearings.
Joint accounts on death of one holder
For joint accounts, the surviving account holder can request transfer of the account in their name using Form SBK 1 and submitting the death certificate. No further legal documentation is required unless otherwise contested.
Important things to keep in mind
· Always register a nominee when opening a post office account to avoid legal hurdles later.
· If nomination details are not updated, family members may have to go through lengthy legal procedures.
· Nomination does not take precedence over succession laws. Legal heirs can sue a nominee in court in the event of disputes.
India Post has a structured but separate procedure for death claims in post office accounts. Having a nominee makes the claim significantly easier, but without one, more formal legal processes are required. For easy settlement, having proper nomination during account opening and being prepared with legal papers is necessary.
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