Succession Certificates: What They Are and How to Get One

When there is no valid will, the distribution of a deceased person’s assets in India falls under the Indian Succession Act, 1925. In such cases, two important documents are involved: the legal heir certificate and the succession certificate. Although they may appear alike, each serves a different legal function and requires separate procedures for obtaining them.

What is a succession certificate?

A succession certificate is a legal document provided by the court to the legal heirs of a deceased individual, authorising them to inherit the deceased's movable assets, such as bank balances, securities, and debts. It acts as definitive proof of the successor, enabling the legal heir to manage and transfer the deceased's assets and liabilities.

Key aspects of a succession certificate

• Issuing authority: Granted by a District Judge under Section 381 of the Indian Succession Act, 1925.

• Purpose: Assists in the transfer of movable assets and helps heirs handle the deceased's debts.

• Applicability: Required for inheriting bank accounts, securities, bonds, and other financial assets.

• Legal necessity: Compulsory for transferring movable assets in the absence of a will or nomination.

Legal heir certificate vs. succession certificate

While both legal heir certificates and succession certificates serve the purpose of facilitating inheritance, they differ in several key aspects.

Criteria	Legal heir certificate	Succession certificate
Issuing authority	District revenue officer, municipality administrative officer, Tehsildar, Talukdar	Issued by the District Judge
Purpose	Used to claim benefits like pensions, insurance, and to transfer immovable assets	Allows transfer of movable property, and management of the deceased’s debts and securities
Applicability	For legal heirs such as parents, spouse, children, or siblings of the deceased	Applicable to the deceased's heirs, including children or grandchildren
Conclusive evidence	No, this does not serve as conclusive proof	Yes, provides conclusive proof as per the Indian Succession Act, 1925
Processing time	Usually issued within 10-15 days	May take up to 2 months, including the public notice period
Required for	Claiming benefits and transferring immovable assets	Necessary for transferring movable assets, managing debts, and securities
Legal requirement	Needed for claiming benefits but not mandatory for movable assets	Mandatory when transferring movable property without a will or nomination
Subsidiary documents	Acts as a supporting document in property transfers	Essential for the transfer of movable assets and inheritance
Process to obtain	Application to regional administrative authorities with required documents	Filing a petition in court, listing heirs and assets, followed by public notice
Common uses	Claiming family pensions, insurance, unpaid salaries, and property transfers	Managing bank accounts, securities, debts, and other financial matters of the deceased
Conclusion	Best suited for immovable asset transfers and benefit claims	Required for movable asset transfers and financial asset management

Components of a succession certificate format

The succession certificate format contains the following important elements:

1. Applicant’s name and relationship to the deceased
2. Details of the deceased
3. List of legal heirs
4. List of assets
5. Court’s authorisation

How to obtain a succession certificate

In India, a succession certificate is issued by the courts to the legal heirs of a person who passes away without a will and has outstanding debts or securities that need to be transferred. This certificate grants the holder the authority to collect debts or transfer securities without having to identify the rightful heir.

It also offers protection to individuals or organisations owing such debts by validating payments made in good faith to the certificate holder. For this reason, many entities require a succession certificate before settling a deceased person's debts or transferring their securities.

Here are the steps to obtain a succession certificate:

1. Prepare the required documents: Gather the necessary documents such as the death certificate of the deceased, proof of relationship with the deceased, and details of the assets or debts to be transferred.

2. File a petition: Submit a petition to the District Judge of the jurisdiction where the deceased lived at the time of death. If the deceased had no fixed residence, file the petition in the district where any part of their property is located.

3. Provide heir information: The petition must include details of the deceased’s legal heirs, their addresses, and their relationship to the deceased.

4. Public notice: The court will issue a public notice, usually in local newspapers, inviting any objections to the granting of the succession certificate. This notice typically lasts for 45 days.

5. Court hearing: If there are no objections, the court will hold a hearing to verify the claims. In case of objections, the court will resolve them before proceeding.

6. Issuance of certificate: Once the court is satisfied with the evidence, it will issue the succession certificate, which will authorise the transfer of the deceased’s movable assets to the legal heirs.

Payment of court fees: The applicant must pay a court fee, which is usually a small percentage of the total value of the deceased’s assets or debts.

By following these steps, the legal heirs can obtain a succession certificate, allowing them to manage and transfer the deceased person’s movable assets such as bank accounts, bonds, and securities.

Succession and home loan

When dealing with succession and a home loan, several important steps and considerations come into play. Here is a breakdown of what typically happens:

1.Identifying the heirs: When the original borrower of a home loan passes away, the legal heirs need to be identified. This is usually done through a succession certificate or a legal heir certificate.

2.Informing the lender: The heirs must inform the lender (bank or financial institution) about the death of the borrower. They need to provide the death certificate and the succession certificate or legal heir certificate.

3.Transferring the loan: The lender will then transfer the home loan to the legal heirs. This process involves verifying the documents and ensuring that the heirs are willing and able to take over the loan.

4.Repayment responsibility: The legal heirs become responsible for repaying the remaining loan amount. They need to continue making the EMI (equated monthly instalments) payments as per the original loan agreement.

5.Loan settlement options: If the heirs are unable or unwilling to continue with the loan, they have a few options:

• Prepayment: They can choose to prepay the outstanding loan amount if they have the financial means.

• Selling the property: They can sell the property to repay the loan. Any remaining amount after settling the loan can be distributed among the heirs.

• Refinancing: They can refinance the loan with another lender if they find better terms.

The succession certificate plays a crucial role when handling movable assets like bank accounts, bonds, and securities. It provides the legal heirs with the authority to manage and transfer these assets while ensuring protection for organisations or individuals holding the debts.

By ensuring that the necessary legal steps are taken, heirs can smoothly navigate the process of managing and transferring the deceased’s financial assets, securing their rightful inheritance while fulfilling any remaining obligations.