Managing the assets and liabilities of a deceased individual can be a complex task. To ensure a smooth transfer of property and protect the rights of beneficiaries, a succession certificate plays a vital role. This article aims to provide a comprehensive guide to succession certificates, covering essential aspects such as their definition, eligibility criteria, required documents, the complete procedure for obtaining one, and the associated costs. By understanding these key points, individuals can navigate the process more effectively and secure their rightful claims.
Table of Contents
What is a Succession Certificate?
A succession certificate is a legal document issued under the Indian Succession Act, 1925. It serves as evidence of the rightful claimants and authorises them to inherit the assets, debts, and securities of a deceased individual. While it does not determine the right, title, and interest to specific properties, it establishes the entitlement of successors to inherit the property of an intestate deceased person.
Usage of Succession Certificate :
- Establishes Authenticity: It establishes the legal heirs’ eligibility to receive the debts, securities, and assets of a deceased person as well as their validity.
- Inherits Debts and Securities: Legal heirs have the right to inherit the debts and securities that the deceased had, including provident funds, insurance policies, bank accounts, shares, and government securities.
- Collects Debts: The succession certificate makes it easier to collect debts related to succession. It guarantees that parties owing money of the deceased must pay it to legitimate representatives or beneficiaries.
- Transfer of Securities: The bearer of a succession certificate has the power to deal with or transfer securities owned by the decedent, as well as to accept interest or dividend payments and perform related tasks.
- Resolves Disputes: In cases where a nominee refuses to cooperate in distributing assets to the legal beneficiary, then a succession certificate helps to resolve the disputes and ensures rightful distribution among family members.
- Conclusive Proof: The grant of this certificate is conclusive against the debtor, providing assurance to parties paying debts to the representatives of the deceased.
- Valid Nationwide :A succession certificate is recognised and enforceable throughout India and is valid throughout the entire nation.
- Transfers of Immovable Property: In some states, transferring the title of immovable property from the decedent to the lawful heirs requires both a succession certificate and a probate.
- Establishes Genuineness: In cases of large inherited sums, this certificate aids in demonstrating the legitimacy of the claimant’s claim to the assets.
Who is Eligible to Apply for a Succession Certificate?
Several individuals are eligible to apply for a succession certificate:
- Sound-minded persons who have attained adulthood.
- Individuals who have an interest in the estate of the deceased.
- The Secretary of State.
- Persons with a beneficial interest in the debts or securities of the deceased.
Which family members are eligible for a Succession certificate ?
In general, following person are eligible for the succession certificate:
- Wife of the deceased.
- The youngster of the deceased.
- Parents and siblings of the deceased.
Documents Required to Obtain a Succession Certificate:
To apply for a succession certificate, the following documents are typically required:
- Application form obtained from the respective court.
- Death certificate of the deceased.
- Proof of residence of the deceased.
- Identity proof of the applicant(s) and the deceased.
- Copy of the will (if applicable).
- Details of family members and their residences.
- Affidavit stating the relationship of the applicant with the deceased.
- Details of the debts and securities for which the certificate is being sought.
- Any additional documents requested by the court.
How to Obtain a Succession Certificate: A Step-by-Step Procedure:
The procedure for obtaining a succession certificate involves the following steps:
- Prepare the application: Complete the application form accurately, providing information about the deceased, family members, debts, and securities.
- Attach the required documents: Gather all necessary documents, including the death certificate, identity proofs, will (if applicable), and supporting affidavits.
- Submit the application: File the application along with the supporting documents at the District Judge’s office within the jurisdiction where the deceased resided or where the property is located.
- Verification and publication: The court will verify the application and may request additional documents or information. The application will be published in the Official Gazette and a local newspaper to allow interested parties to raise objections.
- Court proceedings: The court will conduct hearings to consider objections, if any, and assess the eligibility of the applicants. The court will also determine the preferential claim if multiple individuals apply.
- Grant of the Succession Certificate: Upon satisfaction with the application and resolution of any objections, the court will grant the succession certificate, empowering the holder to collect debts, transfer securities, and undertake other necessary transactions.
Costs to Obtain a Succession Certificate:
The court usually charges a fee for granting a succession certificate, which is based on a fixed percentage of the estate’s value. The specific fee structure is outlined in the Court-fees Act, 1870 (7 of 1870). To pay this fee, judicial stamp papers of the corresponding amount need to be obtained.
Also the additional cost for a succession certificate may vary based on factors such as legal representation (if required), Lawyer Fees and any additional expenses incurred during the process. It is advisable to consult with a legal professional to determine the precise costs involved in your specific case.
FAQ – Comprehensive Guide to Succession Certificates
What is a Succession Certificate?
A succession certificate is a legal document issued under the Indian Succession Act, 1925. It establishes the entitlement of legal heirs to inherit the assets, debts, and securities of a deceased person.
What is the Purpose of a Succession Certificate?
The certificate serves multiple purposes, including establishing authenticity, inheriting debts and securities, resolving disputes, and providing conclusive proof for the rightful distribution of assets.
Who is Eligible to Apply for a Succession Certificate?
Eligible individuals include sound-minded adults, those with an interest in the deceased’s estate, the Secretary of State, and persons with a beneficial interest in the debts or securities of the deceased.
Which Family Members are Eligible for a Succession Certificate?
Generally, the wife, children, and parents or siblings of the deceased are eligible to apply for a succession certificate.
What Documents are Required to Obtain a Succession Certificate?
Required documents typically include the application form, death certificate of the deceased, proof of residence, identity proof of the applicant and deceased, copy of the will (if applicable), details of family members, affidavit stating relationship, and details of debts and securities.
What is the Procedure for Obtaining a Succession Certificate?
The procedure involves preparing the application, attaching required documents, submitting the application to the District Judge’s office, verification and publication, court proceedings, and finally, the grant of the succession certificate.
What Costs are Involved in Obtaining a Succession Certificate?
The court charges a fee based on a percentage of the estate’s value, as outlined in the Court-fees Act, 1870. Additional costs may include legal representation fees and other expenses incurred during the process.
Is a Succession Certificate Valid Nationwide?
Yes, a succession certificate is recognized and enforceable throughout India, providing a valid claim to assets across the nation.
Can a Succession Certificate be Used for Immovable Property?
In some states, transferring the title of immovable property may require both a succession certificate and a probate.
Why is a Succession Certificate Important in Resolving Disputes?
It helps resolve disputes when a nominee refuses to cooperate in distributing assets, ensuring rightful distribution among family members.
Related Article : Death Claim : Your complete guide to deceased claim settlement in India
Legal Heir Certificate : Everything you need to know about Legal Heir Certificate.