Post office savings schemes are used by crores of Indians for safe investment and regular income. Many people invest in post office savings accounts, NSC, SCSS, and other schemes like MIS. But what happens if the account holder passes away? How can the nominee or family members get the money?
The process depends on whether the account has a registered nominee, whether the amount is below or above Rs. 5 lakh, and whether the account is individual or joint. Let’s break down the process step by step in simple words.
If the Post Office Account Has a Registered Nominee
If the account holder registered a nominee while opening the account, the process becomes simpler. The nominee must submit the following:
- Form SBK 2 (Claim form for nominee)
- Original Death Certificate of the account holder
- ID proof of the nominee (like Aadhaar, PAN, etc.)
If the claim amount is below Rs. 5 lakh, the post office generally does not ask for a succession certificate. The nominee can receive the money by cash, cheque, or credit to a post office account. If all documents are correct, the claim usually gets settled within 7 working days.
However, if the claim amount is above Rs. 5 lakh, then the nominee has to submit a succession certificate issued by a civil court. This can take more time and may require legal help, court hearings, and additional costs.
If There is No Nominee Registered
In many cases, account holders forget or skip adding a nominee. In such cases, the legal heirs or close family members need to follow a longer process.
If the claim is up to ₹5 lakh:
The legal heir has to submit:
- Form SBK 2 (Claim form)
- Form SBK 3 (Letter of indemnity)
- Form SBK 4 and SBK 5 (Affidavit and Letter of disclaimer)
- Death Certificate of the account holder
- Legal Heir Certificate issued by local authorities
- ID and Address Proof of the claimant
If the postmaster is satisfied with the submitted documents and there is no dispute, the post office processes the payment without a succession certificate.
If the claim is above ₹5 lakh:
In this case, the legal heir must submit a succession certificate from a competent civil court. This legal document gives the court-approved right to claim money from the deceased person’s account. It usually takes longer to get this certificate and might involve legal fees.
If the Post Office Account Was a Joint Account
In the case of joint accounts, things are much easier. If one of the joint account holders passes away, the surviving account holder can simply get the account transferred to their name.
The person needs to submit:
- Form SBK 1 (Application for transfer in case of death)
- Death Certificate of the other account holder
No other legal document or court certificate is required if there is no dispute among family members.
Important Tips to Avoid Legal Problems in the Future
Many people open post office accounts without registering a nominee. This leads to legal trouble for family members later. To avoid this:
- Always nominate someone while opening a new account
- Update nominee details if the earlier nominee has passed away or needs to be changed
- Inform family members about the account details and the nominee
A nominee helps in quicker claim settlement, but does not override succession law. If legal heirs disagree with the nominee, they can challenge the claim in civil court.
What is a Succession Certificate, and When Is It Needed?
A succession certificate is a legal document issued by a civil court that confirms the rightful heir(s) of a deceased person’s property and financial assets.
It is needed when:
- The deceased did not name a nominee
- The amount to be claimed is more than Rs. 5 lakh
- There is a family dispute or confusion about who should get the money
Getting a succession certificate involves applying to a civil court, attending hearings, and waiting for approval. It can take a few months and may cost money, depending on legal assistance and court fees.
Key Forms You May Need
| Purpose | Form Number |
| Claim by Nominee | SBK 2 |
| Indemnity Letter | SBK 3 |
| Affidavit | SBK 4 |
| Letter of Disclaimer | SBK 5 |
| Joint Account Transfer | SBK 1 |
These forms are available at your nearest post office. Staff at the post office can help you fill them out if needed.
Disclaimer: This article is for informational purposes only. It does not replace legal advice. Please consult a legal expert for detailed guidance on succession certificates and court-related processes.
Sources: Moneycontrol Hindi, India Post Rules
