Introduction

India Government has created rules and regulations for distribution of property when a person has died without leaving a will which is governed by Indian Succession Act, 1925. Due to lack of will the legal heir face problem of accessing the deceased’s financial assets. In this case, succession certificate comes to rescue. The blog here explains about the concept of succession certificate, need, purpose, documents, and most important part is differentiation between legal heir certificate and succession certificate.

Succession Certificate

First let’s understand who a successor is and how is he different from a legal heir. Successor is a person who is nominated by a dependent or nominee to receive benefits after their death. A legal heir is a person who is legally entitled to inherit a deceased person’s property. The primary difference is that legal heir deals with non-financial, immovable property, pensions and other basic claims while a successor is broader in nature and deals with financial instruments, movable properties and other related assets which make them stronger legal authority in comparison to legal heir.

A succession certificate is a legal document that allows the heirs to of a deceased to person to collect debts and securities which was previously owned by the deceased. To deal with succession certificate and other related things there are provisions under Indian Succession Act, 1925. It is governed under Part X from section 370 to 382 of the act.

Purpose

• It acts as a legal proof.
• It helps to grant legal authority to the appropriate person for managing debts and securities.
• It helps in smooth transferring of financial assets.
• The certificate helps to protect debtors from multiple claims.
• The certificate helps in managing liabilities and protects financial institutions.

Procedure for Certificate

Step 1: Drafting and Filing of Petition

The applicant shall prepare a detailed petition, duly verified and signed, and submit it before the competent District Court after payment of the prescribed court fees.

Step 2: Admission and Hearing by Court

Upon receipt of the petition, the District Judge conducts a preliminary hearing. If the petition is admitted, the court fixes a date for final hearing and issues notices to such persons as it deems necessary.

Step 3: Issuance of Succession Certificate

After hearing all concerned parties and examining the merits of the case, the court determines the applicant’s entitlement. If satisfied, the District Judge grants the succession certificate in favour of the applicant.

Step 4: Execution of Bond

The court may direct the applicant to execute a bond, with one or more sureties or other security, to indemnify against any potential loss arising from the use or misuse of the succession certificate.

Checklist

• The certificate comes is required when there is no clarity regarding movable assets such as bank accounts, debts, bonds and other related things.
• Certificate is not mandatory to obtain. IT may be required for seeking government benefits.
• This can be challenged on the basis of fraud, misrepresentation. If the facts are immaterial or if there is discovery of a valid will.
• All the required documents shall be submitted by the person seeking the succession certificate. It includes death certificate of the deceased, identity proof of the applicant, non- objection certificate (if needed), list of debts and securities and other which shall be asked to present in front of the authority.
• The application must be filed in the district court of the place where the deceased person resided ordinarily or before death.
• Time taken for obtaining succession certificate shall not be more than 3-6 months which may vary from court to court and different circumstances.
• Required court fees shall be given to the court which may vary from state to state.
• Certificate is valid in India till lifetime unless revoked. It can be extended for additional assets.
• One should seek professional assistance when required.

Conclusion

Succession certificate is important where there is lack of will. This certificate authorizes the appropriate person to attain their required position and handle all the financial matters. The certificate broadens the scope of the property which has been left by the deceased person. In some cases, it may happen that the successor and legal heir is the same person. It helps to avoid disputes and helps in smooth process.