Succession Certificate: Legal Importance and Acquisition Process

In India, laws of succession are governed by the Indian Succession Act,1925. The said Act empowers and provides succession rights to the rightful legal heirs in cases where there is an absence of will. Through this article, we will understand the concept and process of procuring a Succession Certificate in India.

Meaning of Succession Certificate

A Succession Certificate is a legal document which is issued by a Competent Court to the beneficiaries of the deceased in cases where there is no will made or in place. Generally, all the assets as well as liabilities of the deceased are passed onto the beneficiaries.

In simple terms, when a person dies without making a will, all his/her assets (tangible or intangible) and liabilities (debts/loans) are transferred to the beneficiaries comprising of son/daughter/ wife/ parents of the deceased.

Purpose of a Succession Certificate

The purpose of the Succession Certificate is to make the process simple for the beneficiaries to claim their share in movable and immovable properties of the deceased. With the procurement of such certificate, the beneficiaries can avoid potential legal disputes arising in the absence of a will and further can sought relief from the court with the help of this Certificate.

Circumstances in which a Succession Certificate is Required

Succession Certificate serves as a vital document for the beneficiary in order to claim the assets and settle the liabilities of their deceased parents. This document is required under the following circumstances:

• In order to acquire Movable Properties of the deceased: Generally, to claim the monies present in the bank account of the deceased, the beneficiary is required to obtain this document. Banks in India are a bit stringent in releasing/ transferring the funds to the beneficiary in cases where such document is not submitted by the beneficiaries of the deceased. Therefore, Succession certificate is considered as one of the important documents to be submitted by the beneficiary to get a hold of the monies present in the bank account of the deceased.

• In order to acquire Immovable Properties of the deceased: With the help of the Succession Certificate, the beneficiary can acquire the immovable property of their deceased parent. This document will aid the beneficiary in getting the property mutated / transferred to their name without any hassle. The beneficiary will be required to submit this document at the Land Revenue Department/ Municipal office to claim the assets of their deceased parent.

Why A Succession Certificate is Preferred in India

Succession Certificate is preferred in cases, where there is no will in place. When an individual dies intestate, leaving behind the assets and liabilities for his/her beneficiaries. So, to claim such assets and liabilities of the deceased, the beneficiaries are required to obtain such document from the competent court.

Why Succession Certificate is Considered as an Important Document in India

A Succession Certificate is considered as one of the important documents which a beneficiary is required to procure in cases where there is no will. In order to legally acquire their parents’ assets and liabilities, they are required to obtain this document. With the help of this document in hand, they will be in a position to acquire the monies as well as the investments/properties of their parent(s) and further will be able to settle their debts. Additionally, in case of any legal battle, this document will serve as valid proof of their successorship.

For instance, if a person has made several investments in the form of mutual funds, Fixed deposits etc. and also possess some debts. Upon his death, in case, where there is no will, his/her beneficiaries will be required to obtain a succession certificate in order to claim the assets as well as settle the remaining debts. claim monies from bank accounts of the deceased, the rightful heirs are required to provide a succession certificate to get the money transferred from deceased’s account to their account.

What are the Documents that A Beneficiary must have with Him/Her in Order to Procure a Succession Certificate in India

Following are the Documents that a beneficiary must arrange in order to apply for a Succession Certificate:

• Deceased person’s Death Certificate

• Legal Heir Certificate: A certificate issued by a competent Authority specifying the heirs of the deceased.

• Identity and Address Proof of the Beneficiary (Applicant)

• No objection Certificate needs to be obtained from the other family members/ heirs)

• Affidavit from Beneficiary: Beneficiary is required to provide a statement of claim by way of an Affidavit on Rs 20 stamp paper. In simple terms, he/ she is required to mention that he/she is a bona fide legal heir and is entitled to claim the assets/ liabilities of the deceased on a Rs 20 stamp paper.

Process of Obtaining a Succession Certificate

• The first and foremost step is to file an application with the help of an Advocate at a Competent Court. Briefly, the beneficiary is required to file an application by way of a petition seeking Succession Certificate at the District Court. There are two ways of determining where to file the petition:

• Upon filing the Petition, the Hon’ble court will conduct a preliminary hearing for the application for Succession Certificate. Further the Hon’ble Court shall examine all the information as well as check that all the documents are in place or not.

• Thereafter, if the Court is satisfied with the application and the documentation, the Court will issue a Notice to the other beneficiaries inviting objections if any in relation to the application filed for seeking Succession Certificate. In case of no objections, the Hon’ble Court will issue a Public Notice inviting objections if any. Generally, 30-45 days are given to the parties having any kind objection to file their reply in relation to the application.

• If a party raises an objection to the application, the Court will examine whether the objection raised is valid or not. If the Hon’ble Court feels that the objection raised is valid and should be considered, a series of hearings will be conducted until the court is satisfied.

• In case, where there is no objection raised by any party within the allocated time frame, the Hon’ble Court shall pass an order by way of issuing a succession certificate in favor of the applicant/ beneficiary.

• Generally, it takes 7-8 months to procure a succession certificate depending upon the court process/circumstances of the case.

• 2-3% of the fees are levied as a stamp duty by the Court to be paid by the beneficiaries in obtaining a Succession Certificate.

How is Succession Certificate Different from a Legal Heir Certificate

• The key difference between the former and the latter is that the former is issued in case where there is an absence of a will, and the latter is issued to prove familial relations with the deceased.

• A Legal Heir certificate is issued by the Revenue Department or a Municipal Corporation whereas a Succession Certificate is issued by the District Court.

• It takes almost 30 days to procure a legal heir certificate whereas to procure a succession certificate, it takes several months to obtain depending upon the court process.

Can a Succession Certificate Issued by the Hon’ble Court be Challenged and Revoked?

A succession certificate can be challenged and revoked in India under the following grounds:

• Succession Certificate obtained by committing fraud: In cases, where it is found that the beneficiaries have obtained the succession certificate through fraudulent means, the Hon’ble Court has been empowered to cancel the certificate issued to them.

• The Hon’ble Court has the power to revoke the succession certificate in cases of dispute between legal heirs and where one of the party disputing is able to prove that succession certificate granted by the Hon’ble Court has been wrongly issued. In such circumstances, the court may revoke the succession certified earlier issued.

• In case, if there is any discrepancy found in the Succession Certificate pertaining to any incorrect information in the succession certificate, then the Court may cancel such certificate.

• In case of any procedural/compliance error committed by the beneficiary or the Court, the Hon’ble Court may revoke such Succession Certificate issued earlier.

Conclusion

The legal representatives of the deceased must be aware that in case of an absence will, they have right over the assets as well as the debts owed by the deceased. In order to claim and settle the same, a succession certificate is the key document which can be procured with the help of an advocate who is well versed with laws of succession.