A succession certificate is a legal document issued by a competent court in India, which certifies the rightful heirs of a deceased person who died intestate (without leaving a will). The primary purpose of the succession certificate is to facilitate the collection of debts and securities owed to the deceased.
Certificate Under the Indian Succession Act
A succession certificate, under the Indian Succession Act, is a document that grants authority to the holder to represent the deceased for the purpose of collecting debts and securities payable in the deceased’s name. It is particularly important when there is no will, as it allows heirs to claim the assets of a deceased relative.
Application Process
To obtain a succession certificate, one must apply to a magistrate or a high court, typically through a designated court cell that handles succession matters. For immovable property, documents like a gift deed can be used instead.
Authority and Limitations
A succession certificate authorizes successors to realize the debts and securities of the deceased. However, it does not confer rights of succession to the deceased person’s property, as it does not determine the right, title, and interest of the deceased in any specific property. Instead, it allows successors to inherit the property of an intestate deceased person.
Eligibility and Issuance
Under Section 370 of the Indian Succession Act, a succession certificate cannot be granted if the deceased left a valid will; in such cases, the executor of the will administers the estate. The competent court for issuing a succession certificate is the District Court in the jurisdiction where the deceased person resided (Section 371).
Purpose for Movable Properties
A succession certificate is used to claim movable assets such as bank deposits and fixed deposits. Banks typically require this document before releasing funds. It establishes the legitimacy of the heirs and grants them authority to transfer the assets in their names. The holder of the certificate assumes responsibility and liability for any debts or securities associated with the property.
Required Information for Application
Applicants must provide the following:
- Death certificate of the deceased.
- Residence details of the deceased.
- Family and kin details with their residential addresses.
- Proof of the applicant’s right to be the successor.
- Evidence that the asset does not fall under restrictive cases and is undisputed.
Differences Between Legal Heir Certificate and Succession Certificate
- Purpose:
- Legal Heir Certificate: Used for transferring connections (electricity, telephone), tax purposes, bank accounts, and government benefits.
- Succession Certificate: Required for inheriting property and movable assets under property laws.
- Issuing Authority:
- Legal Heir Certificate: Issued by the Tahsildar.
- Succession Certificate: Issued by the court.
- Eligibility to Apply:
- Legal Heir Certificate: Can be applied for by the son, daughter, husband, wife, or parents of the deceased.
- Succession Certificate: Only legal heirs can apply.
- Documents Required:
- Legal Heir Certificate: Death certificate, identity card, ration card, family member details, affidavit.
- Succession Certificate: Death certificate, details of death, names of all legal heirs, relation with the deceased.
- Fee and Time:
- Legal Heir Certificate: Minimal fees, issued in 15-30 days.
- Succession Certificate: 3% of the property value, takes 5-7 months with a 45-day newspaper notice.
- Usage:
- Legal Heir Certificate: For benefits like gratuity, pension, insurance.
- Succession Certificate: For possession and transfer of property, paying debts, and collecting securities.
Obtaining a Succession Certificate
To obtain a succession certificate, a petition must be filed with the District Judge in the jurisdiction where the deceased resided. The petition must include:
- Time and place of death.
- Details of the deceased’s residence or properties.
- Family and relatives’ details.
- Petitioner’s rights.
- Absence of impediments to granting the certificate.
If satisfied, the District Judge will issue a certificate after hearing all parties involved. The certificate will specify the debts and securities to which the holder is entitled.
Revocation of Succession Certificate
Under Section 383, a succession certificate can be revoked if:
- The process was defective.
- It was obtained fraudulently.
- It becomes useless due to circumstances.
- Another competent court’s order renders it proper to revoke the certificate.
Conclusion
A succession certificate is crucial for claiming movable properties of a deceased person. It validates the legal heirs and allows them to manage the deceased’s assets. While sufficient for movable properties, a letter of administration might be needed for immovable properties, following a similar procedure. Proper legal advice is essential in these matters.