Succession certificate and legal heir certificate

It has been observed over the years and is a hard fact that when the NRI’s need to access their inherited moveable assets in India, they have to face lots of problems and difficulties when it comes to releasing the funds of deceased persons to its legal heirs. Strict policies of the banks in India, non-acquaintance with the prevalent  laws and procedures, and mis information acquired from misinformed individuals and consultants pose a tough situation for an NRI to access their assets back.

As per the present Banking norms and rules in India, a succession certificate is now mandatory for accessing any type of movable assets, whether they maybe funds locked up in bank accounts or investments held in the form of equites, Government bonds, mutual funds, funds held in post offices or any such financial instruments with the Banking or RBI regulated bodies in India.

Succession Certificate is a Legal document which is issued by the Civil Court to validate the rights of a legal heir for making a claim for the movable assets by the successors of the deceased person. The succession certificate is a valid Legal document that establishes the legitimacy of the heirs and gives them the authority to access such assets. It is governed by the Indian Succession Act, 1925 and ensures  proper inheritance of financial Assets. It is issued by the appropriate civil courts in India under the relevant laws of inheritance on an application filed by the beneficiaries in a court of applicable jurisdiction for issuance of such a succession certificate.

Process of Obtaining a Succession Certificate in India

  • Eligibility: Legal Heirs mentioned in the Will or Family members of the deceased can apply.
  • The beneficiary must file a petition within the applicable jurisdiction to procure a certificate in a court of law.
  • The certificate may be issued by a District Judge under whose jurisdiction the movable assets in question are located, or by a Judge under whose authority the deceased lived.
  • The petition must specify the name of the beneficiary, his/her relationship with deceased, names of all other Class 1 Legal heirs.
  • The Application petition must be supported with the death certificate of the deceased person whose assets are being asked for by the legal heirs along with relationship proof and court fees.
  • The court will then notify the parties concerned and provide a time frame within which anyone might raise an objection. If no objection is raised, then the court issues a succession certificate to the beneficiary. If the objection is raised, then the due process of law is followed to check the veracity of the objections, and accordingly the decision is done.
  • In the event of multiple beneficiaries, a Joint certificate is issued.

Under Indian laws, a Legal Heir Certificate is an administrative document used to simply identify the rightful successors of a deceased person. A Succession Certificate, however, is a formal judicial document issued by a civil court under the Indian Succession Act, specifically granting the legal authority to claim and manage movable assets, debts, and securities.

Legal Heir Certificate:

A Legal heir certificate is a document issued by the local authorities, the District Collector Office, to identify the rightful heirs of a deceased individual.

How to Obtain a Legal Heir Certificate:

Eligibility: Immediate family members such as the spouse, children, or parents of the deceased are eligible to apply.

Documentation: Application, Death Certificate of deceased, Identity Proof, Address Proof.

Process: Application to be submitted at the District Collector Office along with required documents.

Generally, it takes 15-30 days to get the Certificate issued.

NRI Global Services provides comprehensive services for the Indians living overseas to apply for and obtain such Succession certificates/Legal Certificate from the Judicial Courts/ Civil Authorities so that they can access the money invested by their parents into movable assets and inherit other assets. We deliver complete end to end service, from initiation to issuance, without the need for our clients having to travel to India.

How to Get Succession Certificate in India

What is Succession Certificate?

Succession Certificate is a legal document awarded by the Courts in India to the legal heirs of a person dying intestate leaving mortgages and securities. An individual is said to have passed away intestate when he/she does not leave a proper Will.

It authorizes the holder to make payment of a debt or transfer the security to the owner of a certificate without having to determine the legal heir designated to it.

It provides reimbursement to all persons owing such debts or liable on such securities on all amounts made to, or dealings had in good faith with a person to whom it was given. Hence, many organization and person request for the document before settling the debts or securities of the deceased in favour of the individual claiming such obligations.

Procedure for Obtaining Succession Certificate

To attain this instrument a petition to the District Judge must be filed. This petition should be filed in the jurisdiction where the late person ordinarily resided at the time of his or her demise or if at that point he or she had no firm place of residence, the District Judge within whose command any part of the property of the deceased may be detected.

As per some eminent Property management lawyers following are the steps to attain the document:

  1. Petition for the Certificate

A petition for obtaining the instrument must include the following mentioned facts:

  • Time of death of the deceased;
  • Residence or details of properties of the dead at the time of
  • the death and the judge and his/her jurisdiction under which it falls;
  • Details of family or other near kin;
  • The rights of the applicant;
  • Absence of any obstacle to the grant of certificate;
  1. Grant of Certificate

On making the petition, if the District Judge is satisfied as to the ground of making the appeal, he/she can award an opportunity of hearing to persons who, in his/her opinion, should be heard.

After listening to all individuals, the Judge can decide the right of the applicant to be awarded the instrument. The Judge would then pass an application for the grant of instrument designating the debts and securities outlined in the application permitting the individual to receive interest or dividend or to negotiate or transfer or do both.

  1. Restriction on the document

A court can sometimes need a bond with one or more surety or sureties for providing an account of debts and securities received by the petitioner of the document for reimbursing the persons who may be entitled to any part of the debtor securities.

  1. Validity of Succession Certificate

This instrument has validity throughout India. If a license is granted in a foreign country by an Indian representation credited to that State, it should be stamped by the Court Fees Act 1870 to have the same effect in India as a document awarded in India.

 

Frequently Asked Question

  • Can the beneficiary claim immovable properties under petition for Succession Certificate?
    Answer is No. Petition for Succession Certificate is filed only to claim movable assets like funds lying in Savings Accounts, FDRs, Pension money, Mutual Funds etc.
  • What documents are required for filing petition for Succession Certificate?
    We require original bank related documents to produce in the Court. If the original documents are not in possession of the claimant, the original record can be summoned in Court from concerned Banks. Alongwith this, Original death certificate of the person whose assets are being claimed is required to be attached with the petition. If the assets are being claimed on the basis of Will, original Will is required.
  • Why do you require a Succession Certificate?
    The Banks and financial institutions do not permit the legal heirs to operate the bank accounts of a deceased person without any proper court order to circumvent any discrepancy. Hence, the Petition for Succession Certificate is filed to obtain order in this respect.
  • Is there any time limitation to file for Succession Certificate?
    There is no time limitation to apply for Succession Certificate. It can be applied anytime.
  • What are the basis for filing petition for Succession Certificate?
    Succession Certificate can be claimed on the basis of a Will or natural succession.
  • Can daughters claim movable assets of deceased father/mother?
    Yes, unless there is a Will in place in which the testator has exclusively excluded his/her daughters from inheritance of his/her properties which were his/her self acquired properties.
  • After filing petition for Succession Certificate How much time it takes to conclude this case?
    It depends upon case to case. However, the minimum time is approximately one year.
  • What are the expenses to obtain Succession Certificate apart from lawyer’s fee ?
    As per the Indian Succession Act, Court Fee has to be paid upon the total amount being claimed under petition for Succession Certificate. It is a mandatory requirement and the amount of Court fee varies from State to State.
  • Who all are made parties in the Petition of Succession Certificate?
    The first party is always ‘General Public’. As per the Court order, publication is made in order to invite objections from the general public as prescribed under Indian Law. All the legal heirs of deceased who are not claiming anything from the assets of the deceased are also made parties to the suit. Banks can also be impleaded as parties, in case the original bank documents are not with the claimant.
  • When the Court passes favourable order, what are the next steps?
    The Court 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. After furnishing the Surety, the Court grants Succession Certificate. On the basis of Succession Certificate assets can be claimed.
  • What is the difference between Legal heir Certificate and Succession Certificate?
    A legal heir certificate is to recognize the lawful living successors of a deceased person. On the other hand, the succession certificate is to first recognize the lawful living successors of a deceased person and thereafter, authorize them to claim movable assets of deceased person.