New Delhi, May 8 -- A Public Provident Fund (PPF) account is a long-term savings scheme backed by the government, where investors can contribute funds on a monthly or yearly basis to build a tax-efficient corpus over time. But, some people may wonder what happens to the funds after the account holder's death.

While the savings scheme offers assured and risk-free returns, its rules after the account holder's death are governed by strict provisions laid down under the scheme, which comes with certain restrictions.

In case of death of the account holder, the PPF account shall be closed, and the nominee or legal heir can claim the balance available in the account after submitting the prescribed documents to the bank or post office. Once the...