SUCCESSION
CERTIFICATE
CERTIFICATE
What is Succession Certificate?
A succession certificate is given to the
successor of a deceased person who has not prepared a will in order to
establish the authenticity of the successor and also to give the certificate
holder an authority over the deceased person’s debts and securities. The
payment of debts of the deceased person and also the transfer of the securities
of the deceased person can be made by the certificate holder even before the
legal heir to the property of the deceased is established.
successor of a deceased person who has not prepared a will in order to
establish the authenticity of the successor and also to give the certificate
holder an authority over the deceased person’s debts and securities. The
payment of debts of the deceased person and also the transfer of the securities
of the deceased person can be made by the certificate holder even before the
legal heir to the property of the deceased is established.
Who issues a succession certificate?
A succession certificate is issued by the
district judge of the relevant jurisdiction. The relevant jurisdiction would be
where the deceased person ordinarily resided at the time of his death or if no
such place is available, the jurisdiction within which any property belonging
to the deceased may be found.
district judge of the relevant jurisdiction. The relevant jurisdiction would be
where the deceased person ordinarily resided at the time of his death or if no
such place is available, the jurisdiction within which any property belonging
to the deceased may be found.
Particulars required when applying for
Succession Certificate?
Succession Certificate?
The petition for the succession
certificate made to the district judge must be signed and verified by the
applicant and include the following details:
certificate made to the district judge must be signed and verified by the
applicant and include the following details:
1. A copy of the death certificate has to
be produced,
be produced,
2. The time of death must be mentioned on
the death certificate,
the death certificate,
3. The ordinary residence of the deceased
before death. Or if no such address is available, then the details of his
property that falls within the jurisdiction where the petition has been filed,
before death. Or if no such address is available, then the details of his
property that falls within the jurisdiction where the petition has been filed,
4. Address, Name & other details
of the legal heir, family or other near relatives, as per the Act,
of the legal heir, family or other near relatives, as per the Act,
5. NOC or No Objection Certificate (from
legal heirs other than the petitioner)
legal heirs other than the petitioner)
6. Any legal heir who wishes to relinquish
his right to the estate, he must declare so in an affidavit.
his right to the estate, he must declare so in an affidavit.
7. Name, Address, and occupation of the
petitioners,
petitioners,
8. Copies of their Ration Cards or
Passports,
Passports,
9. The right of the petitioner has to be
mentioned,
mentioned,
10. The debts and securities for
which the certificate is being applied for,
which the certificate is being applied for,
11. A declaration to be made for the
absence of any reason to invalidate the grant of the certificate.
absence of any reason to invalidate the grant of the certificate.
Court’s Grant of Succession Certificate
What is the procedure to obtain a
succession certificate?
succession certificate?
Step 1 : The petition is submitted along with
court fees. The Court Fees Act, 1870, prescribes a specific percentage of the value
of the estate. This is to be paid in the form of judicial stamp papers. This
fee varies from State to State, in India.
court fees. The Court Fees Act, 1870, prescribes a specific percentage of the value
of the estate. This is to be paid in the form of judicial stamp papers. This
fee varies from State to State, in India.
Step 2 : The Judge will inspect the application.
And make it public by issuing a notice in the national newspapers. And send a
notice to all the respondents. The notice calls for objections, if any, to
issue a succession certificate. It generally provides a period of 45 days to
protest, with necessary documentary proofs. After 45 days are over, he will fix
a date for the hearing.
And make it public by issuing a notice in the national newspapers. And send a
notice to all the respondents. The notice calls for objections, if any, to
issue a succession certificate. It generally provides a period of 45 days to
protest, with necessary documentary proofs. After 45 days are over, he will fix
a date for the hearing.
Step 3 : At the date of the hearing, the judge
will decide if the applicant is within his right to apply. If satisfied, he
shall grant the certificate. The certificate would specify the debts and
securities set forth in the application. It will mention the powers granted to
receive interest/dividend or to negotiate/transfer/both.
will decide if the applicant is within his right to apply. If satisfied, he
shall grant the certificate. The certificate would specify the debts and
securities set forth in the application. It will mention the powers granted to
receive interest/dividend or to negotiate/transfer/both.
Step 4 : The Judge may also require the applicant
to sign an Indemnity Bond to secure the entitled persons. This Bond may also
require a Surety or some other security. That’ll ensure no possible loss arises
out of the use or misuse of such certificate.
to sign an Indemnity Bond to secure the entitled persons. This Bond may also
require a Surety or some other security. That’ll ensure no possible loss arises
out of the use or misuse of such certificate.
What is the validity of the Certificate?
The succession certificate is valid
throughout India. For a resident of a foreign country, a certificate may be
granted. Provided it has been approved by an Indian representative, accredited
to that State (as appointed by the government). of such foreign country. And it
must be stamped in accordance with the Court Fees Act 1870 to have the same
effect in India.
throughout India. For a resident of a foreign country, a certificate may be
granted. Provided it has been approved by an Indian representative, accredited
to that State (as appointed by the government). of such foreign country. And it
must be stamped in accordance with the Court Fees Act 1870 to have the same
effect in India.
Who can Apply?
An adult person of sound mind and having
an interest in the estate of the deceased can apply. The interest may be in the
form of a relative of the deceased, a person having a beneficial interest in
the debt of the security etc.
an interest in the estate of the deceased can apply. The interest may be in the
form of a relative of the deceased, a person having a beneficial interest in
the debt of the security etc.
The applicant cannot be a minor. However,
the succession certificate can be granted to a minor through a guardian.
the succession certificate can be granted to a minor through a guardian.
Sometimes, it gets difficult and
time-taking to establish a relationship for those claiming to be legal heirs.
In such cases, a succession certificate can be granted to establish a
relationship. The rights of the grantee towards debts/investments are valid
even before the legal heir to the property of the deceased is established.
time-taking to establish a relationship for those claiming to be legal heirs.
In such cases, a succession certificate can be granted to establish a
relationship. The rights of the grantee towards debts/investments are valid
even before the legal heir to the property of the deceased is established.
What if more than one application has been
filed?
filed?
When more than one application has been
filed, the judge will decide whom to issue the certificate. He will take into
consideration, the interests presented by the applicants. The reasons provided
and the supportive documents would be considered.
filed, the judge will decide whom to issue the certificate. He will take into
consideration, the interests presented by the applicants. The reasons provided
and the supportive documents would be considered.
What if some Debts/Securities were left
out?
out?
As per Section 376, the succession
certificate can be extended for any debt or security not originally specified.
If such extension/amendment is ordered, it shall have the same effect as the
original certificate. The District Judge would extend, on an application by the
holder/grantee and not of any other person.
certificate can be extended for any debt or security not originally specified.
If such extension/amendment is ordered, it shall have the same effect as the
original certificate. The District Judge would extend, on an application by the
holder/grantee and not of any other person.
What is a Succession Certificate for
property ?
property ?
Succession certificate is a document
issued by a competent court (civil) certifying a rightful person to be the
successor of a deceased person. This certificate authorizes successor(s) to
realize debts and securities of the deceased person. Issuance of succession
certificate does not give right of succession to the claimed property of a
deceased person, because it does not determine the right, title and interest of
the deceased person to a particular property or entire property. However,
successor(s) of intestate deceased person is/are entitled to inherit the
deceased person s property (ies).
issued by a competent court (civil) certifying a rightful person to be the
successor of a deceased person. This certificate authorizes successor(s) to
realize debts and securities of the deceased person. Issuance of succession
certificate does not give right of succession to the claimed property of a
deceased person, because it does not determine the right, title and interest of
the deceased person to a particular property or entire property. However,
successor(s) of intestate deceased person is/are entitled to inherit the
deceased person s property (ies).
As per Section 370 of Indian Succession
Act, when the deceased person has left a validly executed Will , the entire
estate of the deceased person under that will vests on the executor of the will
and in such cases Succession Certificate cannot be granted. In eligible cases,
the competent court to issue such certificate is the District Court(Section 371
of the said Act) in whose jurisdiction the deceased person generally resided.
Act, when the deceased person has left a validly executed Will , the entire
estate of the deceased person under that will vests on the executor of the will
and in such cases Succession Certificate cannot be granted. In eligible cases,
the competent court to issue such certificate is the District Court(Section 371
of the said Act) in whose jurisdiction the deceased person generally resided.
For Movable Properties
Succession Certificate is a document which
is issued by the court for claiming movable properties by the successors of the
deceased. It is significant, and proper advice should be sought while making
and implementing these. Mostly Banks don t release funds or FDs without a
document of this type granted to the successor. It is applied for movable
assets like bank deposits, FDs, etc. If someone dies intestate, (without
leaving a Will) it can be granted by the Civil Court to release the debts and
securities of the one who is no more. It establishes the legitimacy of the
heirs and gives them the authority to get the deposits and other assets
transferred in their names. It is issued by the applicable laws of inheritance
on an application filed by the beneficiaries in a court of relevant
jurisdiction.
is issued by the court for claiming movable properties by the successors of the
deceased. It is significant, and proper advice should be sought while making
and implementing these. Mostly Banks don t release funds or FDs without a
document of this type granted to the successor. It is applied for movable
assets like bank deposits, FDs, etc. If someone dies intestate, (without
leaving a Will) it can be granted by the Civil Court to release the debts and
securities of the one who is no more. It establishes the legitimacy of the
heirs and gives them the authority to get the deposits and other assets
transferred in their names. It is issued by the applicable laws of inheritance
on an application filed by the beneficiaries in a court of relevant
jurisdiction.
1. The first step for any beneficiary is
to file for a succession certificate in the same court within whose
jurisdiction the dead person resided, to inherit the assets of the deceased or
even get them transferred in his name.
to file for a succession certificate in the same court within whose
jurisdiction the dead person resided, to inherit the assets of the deceased or
even get them transferred in his name.
2. The document/certificate that is issued
establishes the authenticity of the petitioner and gives him the authority to
have the assets transferred to his name. Along with authority, the beneficiary
will also carry with him the full responsibility and liability of honouring any
debt or security attached to that particular property.
establishes the authenticity of the petitioner and gives him the authority to
have the assets transferred to his name. Along with authority, the beneficiary
will also carry with him the full responsibility and liability of honouring any
debt or security attached to that particular property.
3. For all applications made by a
recipient to a court of competent jurisdiction, the document in all cases is
issued as per the applicable laws of inheritance.
recipient to a court of competent jurisdiction, the document in all cases is
issued as per the applicable laws of inheritance.
For Immovable properties
In this case, we have situations when
legal heirs stake ownership of title and possession. The title of a property
can be transferred through a systematic process of transfer which can be based
or done through a factum of a Will or Law of Natural Succession where class I
legal heirs are the inheritors.
legal heirs stake ownership of title and possession. The title of a property
can be transferred through a systematic process of transfer which can be based
or done through a factum of a Will or Law of Natural Succession where class I
legal heirs are the inheritors.
Also, a transfer can take place when the
person is alive too, through a Gift Deed. In other cases, a person can claim
his right through a partition. After the completion of these
procedures, the person stands entirely in ownership control. All related
services can be taken care of by our firm, including getting documents and also
sale if you want later on.
person is alive too, through a Gift Deed. In other cases, a person can claim
his right through a partition. After the completion of these
procedures, the person stands entirely in ownership control. All related
services can be taken care of by our firm, including getting documents and also
sale if you want later on.
Some instances of succession certificate:
1. Even if an overseas citizen were to know details about
land that he thinks belongs to him, in many cases he finds himself in a
situation where either parent or an uncle/aunt has died without making a Will.
land that he thinks belongs to him, in many cases he finds himself in a
situation where either parent or an uncle/aunt has died without making a Will.
2. Just knowing that a piece of land belongs to him,
cannot help much proper documentation is needed to assert a claim.
cannot help much proper documentation is needed to assert a claim.
3. Some rules determine the manner in which all the
assets of the deceased are passed on to
the heirs.
assets of the deceased are passed on to
the heirs.
4. It is not easy for him to understand how to get
legal heir certificates and he will always need appropriate advice on these
matters.
legal heir certificates and he will always need appropriate advice on these
matters.
5. While applying for such a document, the following
information is required.
information is required.
6. The time of the death of the deceased, or the Death
Certificate as proof.
Certificate as proof.
7. Place of residence of the dead person or if such
residence is not within the jurisdiction of the district judge then, any other property of the same
individual falling under the purview of
the district judge to whom the application is made.
residence is not within the jurisdiction of the district judge then, any other property of the same
individual falling under the purview of
the district judge to whom the application is made.
8. The details of the family and other kith and kin of
the deceased and their residential addresses.
the deceased and their residential addresses.
9. Proof of what right or what capacity he should be
nominated as the successor of the departed.
nominated as the successor of the departed.
10. Sufficient evidence that the said asset does not
fall under the restrictive cases and there is no dispute to his claim as a
successor.
fall under the restrictive cases and there is no dispute to his claim as a
successor.
11. Complete details of any debt or security attached.
DIFFERENCE BETWEEN LEGAL HEIR CERTIFICATE
AND SUCCESSION CERTIFICATE :
AND SUCCESSION CERTIFICATE :
1) Legal heir certificate and succession
certificate are entirely different. If the head or a family member passes away,
the next direct legal heir of the deceased such as wife/
husband/son/daughter/mother can apply for the Succession Certificate. This
certificate can be used for the purpose of transferring Electricity connection,
Telephone connection/Patta transfer, House Tax, Bank Account, Filing of IT
Returns etc.
certificate are entirely different. If the head or a family member passes away,
the next direct legal heir of the deceased such as wife/
husband/son/daughter/mother can apply for the Succession Certificate. This
certificate can be used for the purpose of transferring Electricity connection,
Telephone connection/Patta transfer, House Tax, Bank Account, Filing of IT
Returns etc.
2) If the deceased person is a Government
servant then the legal heir certificate is issued for approval of family
pension, or to get appointments on concerned grounds. Legal Heir certificate is
also provided for transfer of property- movable and immovable assets.
servant then the legal heir certificate is issued for approval of family
pension, or to get appointments on concerned grounds. Legal Heir certificate is
also provided for transfer of property- movable and immovable assets.
3) A Succession Certificate is required
when someone inherits any immovable property or movable property under the
various Property Laws in the country. Most of these issues come under the Hindu
Succession Act. While some of them come under the community acts or the Indian
Succession Act. Issues need to be known in the right perspective for both
categories.
when someone inherits any immovable property or movable property under the
various Property Laws in the country. Most of these issues come under the Hindu
Succession Act. While some of them come under the community acts or the Indian
Succession Act. Issues need to be known in the right perspective for both
categories.
4) Who issues these
certificates ? : Legal Heir certificates is issued by Tahsildar of the
district to identify a particular deceased person living heirs and succession
certificates are issued by the court to the legal heirs of a deceased person.
certificates ? : Legal Heir certificates is issued by Tahsildar of the
district to identify a particular deceased person living heirs and succession
certificates are issued by the court to the legal heirs of a deceased person.
5) Who can apply for
these Certificates ? : For Succession Certificate: Only legal heir can
apply For Legal Heir Certificate: son/daughter/husband/wife/parents of the dead
person can apply.
these Certificates ? : For Succession Certificate: Only legal heir can
apply For Legal Heir Certificate: son/daughter/husband/wife/parents of the dead
person can apply.
6) What are the
Documents required ? : Required Documents to obtain succession
certificates are death certificate of a dead person, time and place of death,
the name of all legal heirs and relation with the dead person. Required
Documents to obtain Legal Heir Certificate are Death certificate original,
Identity Card, Ration Card, the name of Family members and relationship, an
affidavit worth Rs. 20 on a stamp paper.
Documents required ? : Required Documents to obtain succession
certificates are death certificate of a dead person, time and place of death,
the name of all legal heirs and relation with the dead person. Required
Documents to obtain Legal Heir Certificate are Death certificate original,
Identity Card, Ration Card, the name of Family members and relationship, an
affidavit worth Rs. 20 on a stamp paper.
7) Fee : For
succession certificate, three percentage of total value of the property will be
charged. To issue legal heir certificate Rs.2 for a stamp and Rs. 20 for stamp
paper for affidavit will be required.
succession certificate, three percentage of total value of the property will be
charged. To issue legal heir certificate Rs.2 for a stamp and Rs. 20 for stamp
paper for affidavit will be required.
8) Time period : In
the case of succession certificate a newspaper notice for 45 days is issued by
the court. Any person having an objection with such advertisement can file
oppositions. If the court doesn t receive any objection, it will
issue succession certificate. This process may take 5-7 months. 15 to 30 days
are needed to issue legal heir certificate.
the case of succession certificate a newspaper notice for 45 days is issued by
the court. Any person having an objection with such advertisement can file
oppositions. If the court doesn t receive any objection, it will
issue succession certificate. This process may take 5-7 months. 15 to 30 days
are needed to issue legal heir certificate.
9) Importance : The
Succession Certificate is used for transfer or possession of property or for
paying debts or security on behalf of a deceased person or for collecting debts
or security on behalf of deceased. The Legal Heir Certificate is used for
gratuity, pension, insurance, PF, retirement claims etc.
Succession Certificate is used for transfer or possession of property or for
paying debts or security on behalf of a deceased person or for collecting debts
or security on behalf of deceased. The Legal Heir Certificate is used for
gratuity, pension, insurance, PF, retirement claims etc.
A few more points about the Certificate
The essential purpose of this certificate
has been to provide protection to all parties paying debts. When these payments
have been made in good faith. The grantee also has powers to receive any
interest/dividend on the securities and negotiate or transfer them. Thus any
payments made to and by the grantee on behalf of the deceased person are
legally valid.
has been to provide protection to all parties paying debts. When these payments
have been made in good faith. The grantee also has powers to receive any
interest/dividend on the securities and negotiate or transfer them. Thus any
payments made to and by the grantee on behalf of the deceased person are
legally valid.
The Grantee has the right to :
1. Claim the moveable assets of the deceased
person.
person.
2. This certificate is not applicable to
inherit the immovable assets. For immovable properties, you need letters of
administration from the court.
inherit the immovable assets. For immovable properties, you need letters of
administration from the court.
3. Represent the deceased in collecting
any payment towards debts and/or securities due.
any payment towards debts and/or securities due.
4. Inherit the liabilities of the deceased
person, as well.
person, as well.
5. It can be granted even if there is a
nomination in the deposits, investments, insurance etc.
nomination in the deposits, investments, insurance etc.
6. Further, it doesn’t necessarily make
the certificate holder, a legal heir or the owner of these assets. There is a
separate procedure of law to determine the legal heir(s).
the certificate holder, a legal heir or the owner of these assets. There is a
separate procedure of law to determine the legal heir(s).
7. Above point means that the grantee is
authorized to act only as a trustee to the legal heirs.
authorized to act only as a trustee to the legal heirs.
8. A Legal Heir certificate doesn’t
substitute the Succession Certificate.
substitute the Succession Certificate.
9. It can be revoked/cancelled under
certain situations. These may be fraud, defective proceedings, etc. Thereafter,
the certificate becomes useless.
certain situations. These may be fraud, defective proceedings, etc. Thereafter,
the certificate becomes useless.
10. The court, even if there is more than
one heir, will only issue a single succession certificate.
one heir, will only issue a single succession certificate.
The Succession Certificate affirms that
there has been no will. And denotes the legal heirs of the deceased. The
beneficiary will, additionally, carry with him the full responsibility and
liability of honouring any debt or security attached to that particular
property.
there has been no will. And denotes the legal heirs of the deceased. The
beneficiary will, additionally, carry with him the full responsibility and
liability of honouring any debt or security attached to that particular
property.
Restriction on Succession Certificate
A court can sometime require a bond with
one or more surety or sureties or any other security for rendering an account
of debts and securities received by the petitioner of succession certificate
for indemnifying the persons who may be entitled to any part of the debt or
securities.
one or more surety or sureties or any other security for rendering an account
of debts and securities received by the petitioner of succession certificate
for indemnifying the persons who may be entitled to any part of the debt or
securities.
What is the effect of the Certificate?
The main purpose of this certificate is to
provide protection to all parties paying debts where such payments are made in
good faith. The certificate holder is also empowered to receive any
interest/dividend on the securities and negotiate or transfer such securities
as mentioned in the certificate. Thus all payments made to and by the
certificate holder on behalf of the deceased person will be legally valid.
However, this does not necessarily mean that the certificate holder is the
owner of the securities or the legal heir. The legal heir/heirs are determined
by a separate procedure of law.
provide protection to all parties paying debts where such payments are made in
good faith. The certificate holder is also empowered to receive any
interest/dividend on the securities and negotiate or transfer such securities
as mentioned in the certificate. Thus all payments made to and by the
certificate holder on behalf of the deceased person will be legally valid.
However, this does not necessarily mean that the certificate holder is the
owner of the securities or the legal heir. The legal heir/heirs are determined
by a separate procedure of law.
Revocation of the Succession Certificate
As per Section 383 of the said Act, a
certificate so issued may be revoked for any of the following causes :-
certificate so issued may be revoked for any of the following causes :-
1. Process for obtaining the certificate
was defective.
was defective.
2. Certificate was obtained
fraudulently.
fraudulently.
3. Certificate becomes useless and
inoperative due to circumstances.
inoperative due to circumstances.
4. Decree or order of other competent
court in dealing with the debts and securities of the same deceased person,
renders it proper that the certificate is revoked.
court in dealing with the debts and securities of the same deceased person,
renders it proper that the certificate is revoked.
5. Against an order of the District
judge, in the matter of grant, refusal or revocation of certificate, a person
may appeal to the appropriate High Court.
judge, in the matter of grant, refusal or revocation of certificate, a person
may appeal to the appropriate High Court.
Conclusion :
Succession Certificate is a document which
is issued by the court for claiming movable properties by the successors of the
deceased. It is significant, and proper advice should be sought while making
and implementing these.
is issued by the court for claiming movable properties by the successors of the
deceased. It is significant, and proper advice should be sought while making
and implementing these.
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PG – 19122019