By Claiming Provident Fund (EPF) dues becomes complex when a deceased employee leaves no recorded nomination. Banks and the EPFO demand strict proof of inheritance before releasing funds.
The “Affidavit to Declare Legal Heirs” acts as the primary tool to resolve this, allowing families to access statutory dues without waiting for a lengthy court decree.
This guide details the specific drafting requirements, Section 8 heirship hierarchy, and the exact stamp duty protocols to ensure your application is accepted immediately.
Claiming PF Without a Nomination: The Affidavit Guide
When an employee passes away without a nominee, claiming Provident Fund dues requires precise navigation of succession laws. Here is the complete guide to the Affidavit for Legal Heirs.
The administration of posthumous claims for Employee Provident Fund (EPF) represents a critical intersection of labor welfare and succession law. When an employee dies intestate (without a valid will) or without a registered nomination, the devolution of their statutory dues follows the personal laws of succession. In the absence of a designated nominee, financial institutions and the EPFO require rigorous documentation to establish legitimacy. The “Affidavit to Declare Legal Heirs” serves as a primary instrument in this process.
The Legal Character of PF Accumulations
Provident Fund accumulations are classified as movable property and actionable claims. They are also statutory dues protected by social welfare legislation. This dual character creates a legal environment where the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 intersects with personal succession laws.
If a valid nomination exists, the process is simple: the nominee receives the funds. When no nomination exists, the right to the funds becomes a matter of inheritance. The affidavit acts as a sworn declaration to bridge the gap between administrative requirements and the substantive laws of inheritance, specifically Section 8 of the Hindu Succession Act, 1956 for Hindu employees.
Visualizing Section 8: The Hierarchy of Heirs
Figure 1: Class I heirs exclude all others. The affidavit must account for all individuals in the blue tier.
The Gender Difference: Section 8 vs. Section 15
Most guides assume the deceased employee was male. However, if the deceased was a female Hindu employee, Section 8 does not apply. Instead, Section 15 of the Hindu Succession Act governs the distribution.
If the Deceased was Female:
The hierarchy of heirs changes significantly:
- Entry (a): Sons, Daughters, and the Husband (shared equally).
- Entry (b): Heirs of the Husband (if no children/husband exist).
- Entry (c): Mother and Father.
Key Takeaway:
Unlike for male employees, a female employee’s parents (Mother/Father) are NOT primary heirs if her husband or children are alive. An affidavit for a female employee including parents as beneficiaries while the husband is alive is legally flawed.
Calculating Shares: How Dues are Split
A common misconception is that the “Nominee” owns the money. In reality, a nominee is merely a trustee. Without a nominee, the money belongs to legal heirs. Under the Hindu Succession Act (for males), all Class I heirs take the property in equal shares simultaneously.
Interactive Share Simulator (Male Employee)
Adjust the sliders to see how the PF corpus is divided legally.
*Father is not a Class I heir for male Hindus. He falls in Class II.
Affidavit vs. Succession Certificate
A recurring question for claimants involves the necessity of a Succession Certificate. A Succession Certificate is issued by a court and indemnifies the bank against all future claims. However, it is expensive and time-consuming. An affidavit is a faster alternative accepted for smaller amounts or where the risk is manageable.
| Feature | Legal Heir Affidavit | Succession Certificate |
|---|---|---|
| Issuing Authority | Notary Public / Executive Magistrate | Civil Court (District Judge) |
| Time Required | 1 to 3 Days | 6 to 12 Months |
| Cost Factor | Low (Stamp Duty + Notary Fee) | High (Court Fees approx. 2-3% of assets) |
| Legal Weight | Contractual Indemnity | Statutory Discharge (Absolute) |
| Typical Usage | Claims under ₹5 Lakhs (varies by bank) | Disputed claims or High Value amounts |
Pathfinder: Do You Need a Court Order?
Answer three questions to determine if an Affidavit is sufficient for your claim.
1. Is the total PF Claim amount greater than ₹5 Lakhs?
Anatomy of the Affidavit
The affidavit is not a generic form; it must contain specific warranties to be valid. The template generally used for Exempted Establishments (companies with their own PF Trusts) differs slightly from the standard EPFO Form 20 support documents.
Key Clauses Explained
-
The “No Nomination” Clause:
You must explicitly state that the deceased made no nomination. This confirms that general succession laws apply.
-
The “Class I” Assertion:
The deponent must list all surviving Class I heirs (Widow, Children, Mother). Omission of the mother is a common error that leads to rejection.
-
Indemnity Declaration:
The claimant agrees to reimburse the bank or trust if a superior claimant appears later.
The Critical Companion: Indemnity Bond
The Affidavit rarely travels alone. It is almost always accompanied by an Indemnity Bond. While the Affidavit is a sworn statement of fact (“I am the heir”), the Bond is a financial promise (“I will pay you back if I am lying”).
For claims exceeding ₹10,000 but below the Succession Certificate threshold, the EPFO or the Employer’s Trust will demand this Bond signed by the claimant and often one or two sureties (guarantors) of equal standing.
The “Closed Company” Protocol
A major hurdle arises when the establishment where the deceased worked has permanently closed down. Normally, the employer must attest the claim application (Form 20).
The Solution: If the company is defunct and no authorized signatory exists, the EPFO allows attestation by the Bank Manager where the claimant maintains a bank account. The affidavit must include a specific clause mentioning the closure of the establishment to justify the lack of employer attestation.
State-Wise Stamp Duty Guide
The affidavit must be executed on non-judicial stamp paper. The value changes based on the state where the document is executed. Use the filter below to see approximate requirements for 2025.
Select a State
Click a button above to view stamp duty details.
The Template Text
Below is the standard text for the affidavit. Ensure you replace the bracketed information with accurate details. This format is specifically tailored for submission to the “Chief Officer” of a Bank or PF Trust.
Before the Chief Officer ___________ Bank
I, Smt. [Name], aged about [Age] years, widow of late Shri [Husband’s Name], resident of [Address], do hereby solemnly affirm and state as follows:
1. My husband Shri [Name] was working as [Designation] in [Company] and he died on [Date] at [Place] due to [Cause of Death].
2. That my husband has not made any nomination under the Provident Fund Regulations.
3. That my husband died intestate leaving him surviving myself, and my two minor children [Names], and his mother [Name] as his only heirs under Hindu law.
4. That apart from the above, no other person has any right or interest in the dues.
5. That the establishment M/s [Company Name] has been closed since [Year] and no authorized signatory is available (Delete if not applicable).
VERIFICATION
I, the above named deponent, hereby declare that the contents are true to my personal knowledge.
DEPONENT
Required Attachment Checklist
Submitting the affidavit without supporting proof often results in delays. Use this checklist to ensure your application package is complete before visiting the Notary.
0/6 Completed
Regional Variations & Revenue Certificates
India’s diverse administrative landscape means “one size” does not always fit all. The EPFO recognizes specific revenue certificates in lieu of court decrees for smaller claims.
Tamil Nadu: The “Varisu” Certificate
In TN, the Tahsildar issues a Legal Heir certificate (Varisu Saandru). This is widely accepted by PF authorities. However, recent court rulings suggest it is only valid for statutory dues, not property titles.
Andhra & Telangana: Family Member Certificate
Revenue officers issue a ‘Family Member Certificate’ (FMC). This is distinct from a Legal Heir Certificate but serves the same purpose for PF claims (Compassionate grounds/Gratuity).
Tax Trap: Interest Post-Death
Is the Claim Taxable?
The PF corpus accumulated up to the date of death is completely tax-free for heirs. However, any interest accrued after the date of death until the date of actual payment is taxable in the hands of the heir as “Income from Other Sources.”
Common Rejection Reasons
Based on analysis of rejected claims in 2024, avoid these frequent errors:
- Name Mismatch: The name on the Death Certificate must match the PF records exactly. If “Kumar” is missing or initials are expanded, you will need a separate “One and the Same Person” affidavit.
- Excluding the Mother: As emphasized, the deceased’s mother is a Class I heir. Excluding her to simplify the bank paperwork will cause the PF claim to be rejected.
- Old Stamp Paper: Using stamp paper purchased more than 6 months prior to the date of execution is invalid in many states.
Frequently Asked Questions
Is a Guardianship Certificate mandatory for minors?
Recent circulars have relaxed this requirement. If the claim is processed by the natural guardian (Mother/Father) and the amount is credited to a joint account or the minor’s account under guardianship, a court certificate is often waived by the EPFO.
What if the mother of the deceased is alive?
She is a Class I heir. She must either be a joint applicant or sign a Relinquishment Deed/NOC. You cannot exclude her from the affidavit.
Does this apply to Muslim employees?
No. This template references “Hindu Law”. For Muslim employees, the Muslim Personal Law (Shariat) Application Act applies, which has different rules for shares. A modified affidavit is required.
