Table of Contents
Abstract
A succession certificate grants authority to the legal heirs to inherit debts and securities, while a legal heir certificate identifies the rightful heirs of a deceased person. Obtaining these involves different processes and jurisdictions, essential for transferring assets and settling claims. Their issuance depends on the specific legal and financial circumstances.[1]
Introduction
A Succession Certificate allows heirs to collect debts and securities of the deceased without a will, protecting debtors who pay them but doesn’t confer ownership. A Legal Heir Certificate identifies rightful heirs who are entitled to inherit the estate. Succession Certificates are issued by District Courts, while Legal Heir Certificates are from municipal or revenue authorities, each with different stamp duties and fees. Knowing which certificate to obtain is crucial for managing estates and ensuring legal inheritance in India.[2]
Succession Certificate
A Succession Certificate from an Indian District Court allows legal heirs of a deceased person, in the absence of a will, to collect debts, transfer assets, and receive interest/dividends on securities. It grants authority but not ownership of the deceased’s estate.[3]
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Legal Heir Certificate
A legal heir certificate is an official government document that certifies the relationship between a deceased person and their legal heirs, facilitating the transmission of real estate and financial claims. It prevents disputes among heirs by verifying their entitlement to the deceased’s assets. Issued by the tax department or local government, these certificates validate inheritance and succession claims, ensuring compliance with legal requirements for property transfer and entitlements.
Key Differences between succession certificate and Legal heir certificate
- Scope and Applicability: The succession certificate is sought by heirs like children or grandchildren for handling financial matters of the deceased, while legal heir certificate is applied for by parents, spouse, children, or siblings to determine rightful inheritance shares.
- Issuing Authorities: A legal heir certificate is issued by municipal authorities to identify heirs for property and insurance claims, while a succession certificate from court verifies rightful heirs and allocates assets in the absence of a will.
- Legal Validity and cases: The Indian Succession Act of 1925 validates succession certificates for settling debts, distributing assets, and transferring securities. Legal heir certificates facilitate inheritance claims for both movable and immovable properties, easing asset transfer and financial management related to the deceased’s estate.[4]
Process for obtaining a succession certificate
Step-by-step guide to applying for a Succession Certificate :
Step 1: To File A Petition
A petition is required by a deceased person’s legitimate heirs to assert ownership of their assets. The form must be approved and submitted to a civil court. It should include the deceased’s death date, time, place, information about the heirs, a summary of the deceased’s possessions, the petitioner’s rights, any documents preventing certificate granted, and an additional legal heir’s No Objection Certificate.
Step 2: To Submit the fees
In accordance with The Court Fees Act, 1870, the court exacts a certain proportion of the estate’s value. This amount must be paid by the petitioner in judicial stamps.
Step 3: Publishing Notice in the Newspaper
After reviewing the petition, the court publishes it in a major publication. Any objections from the public may be voiced. The court also notifies the remaining respondents and heirs. Anyone can object to the petition within the 45-day timeframe specified in the notification. To substantiate such a claim, the petition must be filed with the necessary supporting documentation.
Step 4: To receive a Certificate
The court awards the petitioner the succession certificate to validate the established claim if, after 45 days, no one challenges who is the rightful owner of the deceased person’s belongings. In the event that there are many petitioners, the court provides a joint succession certificate. For a single asset, the court only gives a single certificate, though.
Step 5: Signing the Indemnity Bond
The petitioner may be required by the court to sign an indemnity bond in order to avoid misuse of the granted certificate.
Required documents and information
The death certificate of the deceased, their date and location of death, the names of all legitimate heirs, and relation with the dead person.[5]
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Judicial Process
A succession certificate, issued by Indian courts to intestate heirs, requires a petition to the District Judge. It typically takes several months due to the notification period for objections and costs 3% of the property’s value. A legal heir certificate is provided within 15 to 30 days.[6]
Process for obtaining a Legal Heir Certificate
Step-by-step guide to applying for a Legal Heir Certificate
STEP 1: The Taluk or Tahasildar office must be visited by the petitioner.
STEP 2 : An Application form must be given to the applicant by a Tahsildar Official .
STEP 3 : It is the applicant’s duty to accurately and completely fill out the application.
STEP 4 : An applicant must complete the application form and attach all required papers after entering the details.
STEP 5 : The applicant needs to attach ₹2 stamp to the application form.
STEP 6 : The application form must be turned in by the applicant to the Tahasildar’s office authorised officer.
STEP 7 : The application is verified by revenue inspectors and village administrative officers.
STEP 8 : Once the verification process is over, the appropriate official will issue a certificate listing all of the deceased’s lawful heirs .
Required Documents and Information
Original death certificate, identity card, ration card, family member names and relationships, and an affidavit.To apply to be recognised as a legal heir, the following details about the dead must be known. Name of deceased,family members of the deceased, signature of applicant, applicant’s date of application, address of residence.[7]
Administrative Process
Overview of the administrative process involved –Legal heirship certificates can be obtained from revenue officers in taluks, despite the Indian Succession Act, 1925 not specifying how to do so. In disagreements, heirs should file a civil lawsuit.
Typical Timelines and Costs
It takes 15 to 30 days to issue a legal heir certificate. The cost of obtaining a legal heir certificate in India varies by state and is regulated by specific laws and policies. In Maharashtra, the fee for a legal heir certificate is generally around. Rs. 2 for a stamp and Rs. 20 for a stamp paper.[8]
Which Certificate to obtain?
Criteria for Choosing the Appropriate Certificate
A Succession Certificate is needed when claiming a deceased individual’s bank accounts and property, or for government employee’s spouse to access pension benefits.[9] On the other hand, a Legal Heir Certificate is necessary when there are government-related benefits or services involved, especially for proving entitlement to pension benefits of a deceased government employee.[10]
Example : Scenario for Succession Certificate: Mr. Kumar died away without a will. He had savings in a bank account and a city flat. Need: A succession certificate is required in order to give his legal heirs ownership of the flat and to access the money in his bank account. [11]
Scenario for Legal Heir Certificate: A government employee named Ms. Rao passed away. Her spouse is interested in obtaining her pension payments. Need: A legal heir certificate is necessary to prove her husband’s inheritance and eligibility for her pension benefits.[12]
Judicial Precedents
The Madras High Court ruled that Revenue authorities must file complaints under Section 200 Cr.P.C. to prosecute those providing fraudulent information to obtain Legal Heirship Certificates. This step aims to combat the widespread issue of false claims and concealment of facts in property transfers and revenue record changes.[13]
In Sarbati Devi v. Usha Devi case, it was clarified that a legal heir certificate confirms the relationship with the deceased but does not prove ownership of property. In contrast, a succession certificate serves as definitive proof of the right to inherit the deceased’s property, highlighting the distinct roles of these certificates in inheritance matters.[14]
In the case of Venkatachalam vs tehsildar it was decided that the certificate issued by the Tahsildar does not affect the legal right of any party and has no bearing on the status of a legal heir which is conferred on an individual under his/her personal law.[15]
In the case of Rampali v. State Govt. Of NCT of Delhi ,the Delhi High Court held that the Succession Certificate can only be granted to legal heirs of a person dying intestate.
Conclusion
A succession certificate is a document issued by a civil court of competent jurisdiction attesting to the rightful heir of a deceased person. This document gives the successor(s) permission to take ownership of the deceased person’s stocks and obligations. Legal heirship certificates are used to identify surviving heirs of a deceased person, proving their kinship to the deceased and allowing transfer of assets, including pensions, provident fund, etc.
This article is authored by Mr. Arman Shaikh, student at AKK New Law Academy, Pune.
[1]https://www.ezylegal.in/blogs/understanding-the-difference-between-legal-heir-certificate-and-succession-certificate
[2]https://www.bankbazaar.com/govt-utility/succession-certificate.html
[3]https://cleartax.in/s/succession-certificate-format
[4]https://districts.ecourts.gov.in/sites/default/files/jcj%20rajamwrkshop1.pdf
[5]https://cleartax.in/s/succession-certificate-format
[6]https://www.bajajfinserv.in/succession-certificate
[7]https://getyellow.in/resources/how-to-get-a-legal-heir-certificate-in-maharashtra
[8]https://cleartax.in/s/legal-heir-certificate-format-download
[9]https://cleartax.in/s/succession-certificate-format
[10]https://districts.ecourts.gov.in/sites/default/files/jcj%20rajamwrkshop1.pdf
[11]https://www.bajajfinserv.in/succession-certificate
[12]https://cleartax.in/s/succession-certificate-format
[13]https://lawbeat.in/news-updates/madras-high-court-orders-criminal-prosecution-false-legal-heirship-certificates-seekers-issuers
[14]https://www.scconline.com/blog/post/2017/05/06/succession-certificate-can-only-be-granted-to-legal-heirs-of-a-person-dying-intestate/
[15]https://indiankanoon.org/doc/15934312/
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