A Succession Certificate establishes who the legal heirs are and the authenticity of the successor. It is a Certificate given to the successor of a deceased person who dies without leaving a will. The list of debts, securities and assets of the deceased is mentioned therein in the certificate of succession. The certificate provides detailed information about the deceased like who are the other surviving legal heirs, what is the relation of the petitioner with the deceased etc. Besides, it also contains data regarding the time, date and place of death of the deceased and so on. It means that the certificate holder has authority over the deceased person’s assets of the deceased. The assets may include Insurance, Mutual Funds, Pension (in Employees Provident Fund or otherwise), Retirement Benefits or any other service benefits. In other words, it helps the grantee or the receiver, to recover the debts due to the deceased person.
In the absence of a will, this is the primary certificate through which the heirs can stake a claim to the assets of a deceased relative.
If you are wondering what is succession certificate, know that it is a legal recognition through which the heirs can claim the assets of the deceased relative, in the absence of a will. Moreover, it protects the payer that the debt released by him has gone to a certified person.
The successor would receive assets as well as inherit any debts/loans to be paid, as per the Indian Succession Act, 1925. The governing Sections are 380, 381 & 382.
The Legal Term, for when a person has died, without making a legally valid Will. Intestate may be the entire assets or some particular ones only. In other words, intestacy is either total or partial.
Total intestacy is when the deceased has not named any beneficiary to any of his property. In other words, the will wasn’t made or doesn’t exist. Partial intestacy is where the deceased effectively disposes of some of the beneficial interest in his property by will. But not all.
If the deceased has left no will. He has died intestate in respect of the whole of his property.
When the deceased has left a will appointing someone as his executor. However, the will doesn’t contain any other provision. Then it is understood that he has died intestate in respect of the distribution of his property.
If the deceased has bequeathed his whole property for an illegitimate or illegal purpose. In such a case, legally, he has died intestate. When a will is partially incapable of being operative. For example, he has bequeathed Rs. 1000 to A and Rs. 1000 to the eldest son of B. Made no other bequest. And has died leaving the sum of Rs. 2000.00 and no other property. B dies before the deceased without ever having a son. Then he has died intestate in respect of the distribution of Rs.1000.
Nonetheless, you might want to know when succession certificate is not required. Well! In the cases where the deceased has made a valid will, providing clear and complete details about property distribution, there you won’t need a succession certificate. The execution of the Will is what you must opt for.
A succession certificate is issued by 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.
The succession certificate stands valid anywhere within India. However, where a certificate has been granted to a person who is a resident of a foreign country, by an Indian representative (as appointed by the government), of such foreign country, the certificate will stand valid only if properly stamped.
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.
Indian Succession Act, 1925 governs the procedure and has laid down the mandatory requirements for Succession Certificate. A Succession Certificate is issued by the District Judge. The relevant judge is from the court that has jurisdiction in the District Judge where the deceased person ordinarily resided. Where no such place is available, the jurisdiction within which any property belonging to the deceased may be found.
The legal heirs of the deceased must file an affidavit petitioning their claim to the property. The petition is to be made to the District Judge. It needs to be signed and verified by the Applicant. It must include the following details:
If you are wondering how to get succession certificate, follow the given procedure to obtain the same:
The procedure after the Petition has been submitted to the District Judge of the District Judge :
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.
Step 2: The Judge will inspect the application. And make it public by issuing a notice. 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.
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 will ensure no possible loss arises out of the use or misuse of such 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.
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.
The applicant cannot be a minor. However, the succession certificate can be granted to a minor through a guardian.
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.
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.
The Grantee has the right to:
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.
Sometimes, the bank only asks for it in case another legal heir is contesting the nominees claim. On the other hand, if the matter goes to the court, it will be necessary. It isn’t the aptest document in case of properties. For this, a letter of administration would be required. A letter of administration is an explicit document granting a person the authority to administer the property of the deceased. The procedure to get this document is the same as the procedure for getting the succession certificate.
| Succession Certificate | Legal Heirs Certificate | |
| Applicability | It gives authority to obtain the debts and securities of the deceased when a Will has not been drawn. | To have a claim to the estate of the deceased, as a legal heir |
| Relationship | Relationship of the Petitioner to the deceased | List of all the legal heirs of the deceased. |
| Purpose | (a) To establish the authority of the Petitioner to inherit debts and securities of the deceased. (b) To provide protection to parties paying debts | Identifying and establish living heirs of a deceased person |
| Effect | The grantee may not be the beneficiary of the estate of the deceased | The holder has entitlement to the estate. |
| Assets | Only for movable properties of the deceased. | Applicable for all properties of the deceased. |
| Issuing Authority | It is issued by a Civil Court of the High Court | Issued by the Revenue Office of the High Court to identify a particular deceased person’s living heirs. |
| Contents | A list of all debts and securities sought. | You can avoid mentioning the details of the properties, for applying this certificate. |
A Succession Certificate is necessary, but may not be always sufficient, to release the assets of the deceased.
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.
Legal provisions relating to succession of property is a very nuanced subject and if you need help, speak to a competent legal professional. Taking professional assistance will help you gain knowledge about what is a succession certificate, how to get one and the various methods to effectively use the same. Hence, act as per your requirements.
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