What is a succession certificate? How to obtain it? What is the purpose of this certificate? These were some of the questions that Surendra Mishra, one of our readers, asked us on Facebook. Since it was a legal matter, we spoke to our legal expert and got some commonly asked questions on succession certificate answered.
Here are the excerpts.
What is succession certificate?
A succession certificate is a document given to the legal heir or the successor of a deceased person who has not prepared a will. It establishes the relation of the petitioner with the deceased.
In the absence of a will, it is a crucial document that lists the details about the debts, securities, and assets of the deceased. The succession certificate gives the certificate holder the authority over the deceased person’s assets such as a pension, mutual funds, and insurance, among others. As per the Indian Succession Act, 1925, the successor will also inherit any debts/loans to be paid.
Which authority issues this certificate?
A succession certificate is issued by a district judge of the area, where the deceased person resided. Where no such place is available, the jurisdiction within which any property belonging to the deceased may be found.
What is the process to apply?
The legal heir of the deceased should file an affidavit, petitioning their claim to the assets, to the District Judge. The petition must include details, such as:
- A copy of the death certificate
- Name, address, and occupation of the petitioners
- No Objection Certificate from the other legal heirs
- The debts and securities for which the certificate is being applied for
After reviewing the application, the judge will make it public by issuing a notice in the national newspapers. The notice calls for objections, if any, to issue a succession certificate. For this, a period of 45 days is provided, after which a date for the hearing will be fixed. If no one contests the petition within the stipulated time, then the judge will issue the succession certificate to the petitioner. This whole process could take about four to seven months.
Is there any fee?
Yes. According to the Court Fees Act, 1870, the petitioner has to pay a specific percentage of the value of the asset as a court fee. However, this varies from state to state. This fee is paid in the form of judicial stamp papers of the sufficient amount, after which the certificate is typed, attested, and delivered to the petitioner.
What if there is more than one applicant?
If there is more than one applicant, then the judge will decide whom to issue the succession certificate based on the interests and documents presented by the applicants.
What about the validity?
A succession certificate is valid throughout the country. However, where a certificate has been granted to a resident of a foreign country by an Indian representative (as appointed by the government) of such foreign country, the certificate will stand valid only if properly stamped.
Can a succession certificate be revoked?
Yes, but under certain circumstances, including:
- If the certificate was obtained fraudulently
- If the process of obtaining the certificate was defective
- If the certificate becomes useless and inoperative due to circumstances
- Decree or order of other competent courts in dealing with the debts and securities of the same deceased person renders it proper that the certificate is revoked
Can a person inherit immovable assets with a succession certificate?
No. The purpose of a succession certificate is to affirm:
- The legal heirs of the deceased, and
- That there is no will
For immovable properties, a letter of administration from the court is needed that will grant a person the authority to administer the property of a person who has died intestate.
What is the difference between succession certificate and legal heir certificate?
The legal heir, who is directly related to the deceased, is eligible to apply for the succession certificate to gain authority over the debts and securities of the deceased. The holder may not be the ultimate beneficiary of the estate of the deceased. However, the legal heir certificate is used to stake a claim as a rightful heir to the estate of the deceased. The holder of this certificate is entitled to inherit the estate.