Succession certificates are crucial legal documents that help transfer the movable assets of a deceased person to their legal heirs.
They play a vital role in ensuring that the rightful heirs can claim bank accounts, investments, and other movable properties that belonged to the deceased.
In India, obtaining a succession certificate is governed by various laws, including the Indian Succession Act, and the process involves approaching a civil court with the necessary documentation.
This article explores who is eligible for a succession certificate, the legal process for obtaining one, the intricacies of succession laws in India, and the management and transfer of a deceased person's assets.
What Is A Succession Certificate?
A succession certificate is a legal document issued by a civil court that gives the legal heirs of a deceased person the right to claim and transfer movable assets such as bank accounts, shares, bonds, and other financial assets. The documents required for succession certificate include specific paperwork necessary for the application process in various contexts.
It is an important document for claiming the deceased person’s assets when they have passed away without a valid Will.
Purpose of a Succession Certificate
The primary purpose of a succession certificate is to establish the legal right of the heirs to inherit the deceased’s assets.
It is a conclusive proof of inheritance in the absence of a Will and is required for claiming funds from the deceased’s bank accounts, provident funds, and other financial institutions.
Difference Between A Succession Certificate & A Legal Heir Certificate
While both succession certificates and legal heir certificates serve as proof of inheritance, they are distinct in their purpose and usage.
- A legal heir certificate (also known as a legal heirship certificate) is a document that establishes the relationship between the deceased and their family members, identifying the immediate legal heirs. It is usually used for purposes like transfer of immovable assets, claiming family pensions, insurance, and employment benefits.
- A succession certificate, on the other hand, is required when the heirs need to claim movable assets such as bank accounts, shares, and bonds. The succession certificate also includes the right to transfer these assets into the heirs’ names.
Indian Succession Act and Its Role
The Indian Succession Act, 1925 governs the process of obtaining a succession certificate in India.
This law outlines the legal procedures, eligibility criteria, and the types of assets that can be claimed using a succession certificate.
The Act applies to Hindus, Christians, Parsis, and other communities, although certain specific provisions apply to different religious groups.
Eligibility For A Succession Certificate
To be eligible for a succession certificate, one must be a legal heir of the deceased person.
This includes individuals who are entitled to inherit the deceased person’s movable assets under the Indian Succession Act or other applicable laws.
Here’s a breakdown of those who are typically eligible to apply for a succession certificate:
1. Immediate Family Members
- Spouse: The surviving spouse of the deceased is generally considered the primary legal heir.
- Children: Sons and daughters, whether married or unmarried, are eligible to inherit.
- Parents: If the deceased was unmarried, the surviving parents are the primary legal heirs.
- Siblings: In the absence of a spouse, children, or parents, siblings may also be eligible to apply.
2. Other Legal Heirs
In the absence of immediate family members, other legal heirs such as distant relatives, grandchildren, or nephews and nieces may be eligible to apply for a succession certificate.
However, the eligibility of such heirs is determined based on the applicable succession laws, such as the Hindu Succession Act for Hindus or the Indian Succession Act for other communities.
3. Legally Adopted Children
Legally adopted children have the same rights as biological children and are entitled to inherit the deceased person’s assets, including applying for a succession certificate.
4. Nominated Beneficiaries
In cases where the deceased person has nominated a beneficiary for their bank accounts or investments, the nominated individual is eligible to claim the assets.
However, they may still need to obtain a succession certificate to legally transfer the assets.
Process Of Obtaining A Succession Certificate
1. Filing a Petition in the Civil Court
The process for obtaining a succession certificate begins with filing a petition in the appropriate civil court, typically where the deceased person resided or where the assets are located.
The petitioner (legal heir) must submit the necessary documents, including the death certificate of the deceased and proof of their relationship to the deceased.
2. Documents Required for the Petition
- Death Certificate: A certified copy of the death certificate is mandatory.
- Legal Heir Certificate: In some cases, a legal heir certificate is required to prove the legal standing of the petitioner.
- Identity Proof and Address Proof: The petitioner must submit their identity proof, such as an Aadhar card, passport, or PAN card, along with address proof.
- List of Assets: A detailed list of the deceased person’s movable assets, such as bank accounts, shares, and other investments, must be provided.
- Details of Other Legal Heirs: Information about other legal heirs, if any, should be included.
These are the primary documents required for succession certificate applications.
3. Court Fees and Expenses
The petitioner must pay court fees as per the Court Fees Act. The fees may vary based on the value of the assets being claimed.
The court fees are typically a percentage of the total value of the deceased’s estate.
4. Issuance of a Public Notice
Once the petition is filed, the court issues a public notice in local newspapers to invite any objections.
The notice period is generally 45 days, during which other legal heirs or interested parties can raise objections if they believe they have a claim to the deceased person’s assets.
5. Hearing and Objections
If no objections are raised, the court proceeds with the issuance of the succession certificate.
However, if objections are raised, the court conducts a hearing to resolve any disputes among the heirs.
6. Issuance of the Succession Certificate
Once the court is satisfied with the evidence provided and any objections have been addressed, the succession certificate is issued.
The certificate grants the legal heirs the right to claim and transfer the deceased person’s movable assets.
Jurisdiction & Guidance
Understanding Legal Jurisdiction
When it comes to obtaining a succession certificate, understanding the legal jurisdiction is crucial.
The jurisdiction of the civil court matters significantly, as it determines the court’s authority to handle the case.
In India, the application for a succession certificate must be submitted to the civil court or district court where the deceased person ordinarily resided or where their assets, particularly immovable property, are located.
Filing in the wrong jurisdiction can lead to significant delays, as the petition might need to be transferred to the correct court, or in some cases, even be refiled entirely.
Seeking Legal Guidance
Obtaining a succession certificate can be a complex legal process, often necessitating expert guidance.
It is highly recommended to seek professional legal assistance to navigate the process smoothly.
A legal expert can help you understand the specific costs associated with your case, guide you through the documentation process, and ensure that you comply with all the legal requirements.
Additionally, they can provide valuable advice on how to handle potential disputes or objections that may arise during the process.
Succession Certificate For Movable And Immovable Assets
It’s important to note that a succession certificate applies primarily to movable assets such as bank accounts, shares, and bonds.
A succession certificate for immovable property is crucial for legally establishing ownership and facilitating the transfer of real estate to heirs, while also helping to avoid potential disputes regarding property rights.
For immovable property such as land and buildings, other legal documents such as a legal heir certificate or a court order may be required.
Movable Assets
- Bank Accounts: A succession certificate is required to claim funds from the deceased person’s bank accounts, fixed deposits, or other financial accounts.
- Shares and Bonds: The legal heirs need a succession certificate to transfer shares, bonds, and other securities in their name.
- Insurance Policies: If the deceased person held life insurance policies without naming a nominee, the heirs may need a succession certificate to claim the policy benefits.
Immovable Assets
For immovable assets, such as property or land, the legal heirs may need to apply for property ownership transfer through different legal procedures.
A succession certificate is not sufficient for transferring immovable property.
Hindu Succession Act & Other Applicable Laws
In India, succession laws differ based on religious practices. The Hindu Succession Act applies to Hindus, Buddhists, Jains, and Sikhs, while other communities follow the provisions of the Indian Succession Act.
These laws determine the rightful heirs and the distribution of the deceased person’s assets.
Hindu Succession Act
Under the Hindu Succession Act, the property of a Hindu male dying intestate (without a Will) is distributed among Class I heirs, which include the spouse, children, and mother.
In the absence of Class I heirs, Class II heirs such as siblings, uncles, and aunts are considered.
Indian Succession Act
For other communities, the Indian Succession Act outlines the legal process for inheritance.
The legal heirs are determined based on the personal laws of the deceased, and the distribution of assets follows the principles set out in the Act.
Succession Certificate For NRIs
Non-resident Indians (NRIs) are also eligible to apply for a succession certificate if they are legal heirs of a deceased person in India.
The process remains the same, although NRIs may need to appoint a local representative or seek legal assistance to handle the process on their behalf.
NRIs and Legal Procedures
NRIs must ensure they provide all necessary documents, including identity proof and address proof, and may need to visit the Indian consulate to get certain documents attested.
Benefits & Importance
Advantages of Obtaining a Succession Certificate
Obtaining a succession certificate has several advantages. Firstly, it provides legal proof that you are the rightful heir to the estate, giving you the authority to take possession of the estate and its assets.
This can help you avoid potential disputes with other heirs or Beneficiaries. Secondly, it can streamline the probate process by eliminating the need for a Will contest or other litigation.
Finally, having a succession certificate can provide some peace of mind in an already difficult time, allowing you to focus on managing the deceased person’s assets and liabilities.
In some cases, a succession certificate may be required to sell the property or transfer ownership of assets. It can also help to prevent disputes among family members or other potential heirs.
Moreover, having a succession certificate can provide a sense of security and stability, as it establishes the legitimacy of the heirs and gives them the authority to manage the deceased person’s estate.
Overall, obtaining a succession certificate is an essential step in managing the estate of a deceased person.
It provides a crucial legal document that establishes the rightful heirs and gives them the authority to take control of the estate.
By understanding the jurisdiction and seeking legal guidance, you can navigate the process smoothly and ensure that you comply with all the legal requirements.
Legal Intricacies of Succession Certificates
While obtaining a succession certificate seems straightforward, there are several legal intricacies involved.
The court may issue a succession certificate for only part of the assets, and multiple certificates may be required if the deceased held assets in different locations.
Moreover, disputes among heirs can lead to prolonged legal battles, making the process more complex.
The Bottom Line: How Yellow Can Help
A succession certificate is an essential legal document that allows legal heirs to claim the movable assets of a deceased person.
It ensures that the rightful heirs can transfer assets such as bank accounts, shares, and insurance policies in their name.
To obtain a succession certificate, the legal heirs must follow the legal procedures set out in the Indian Succession Act and file a petition in the appropriate court.
The process involves filing the necessary documents, paying court fees, and adhering to the legal requirements.
Understanding the legal landscape surrounding succession certificates can help heirs navigate the process smoothly and ensure the timely transfer of assets.
At Yellow, we can help you with all aspects of estate planning, including Wills, Trusts, Powers of Attorney, Gift Deeds, Legal Heir and Succession Certificates, and Living Wills. We also offer post-demise and asset transfer services. Our team of legal experts has more than 50 years of combined experience.
