You might have heard about the succession certificate but do not know the meaning of a succession certificate. This article will clear all your doubts. We assure you that by the end of this article, you will have a better vision of succession certificates.
The succession certificate is issued when a person dies without making a will of his property. According to the law, the whole property will be in the name of his son/daughter. When someone applies for the claims, then they need the succession certificate. There is much more you should know about it. Let’s understand them.
Did you know?
It has been shown that when a lot of succession certificates are submitted, judges need to identify which certificate to issue first. Do you know how they choose the applicants? The judges show more interest in the applicants who have more activity and concern.
What is a Succession Certificate?
The succession certificate is issued to claim the wealth of a dead person to transfer it to his legal heir. This process takes place under the Indian succession law 1925 in civil court. The need for the succession certificate came when the person died without making the will of his legal heir. After the application in the civil court, the legal heirs are identified first, and then the process starts. The wealth can be any mutual fund or insurance. The pension or bank balance comes under the possession of the person.
The holder of the succession certificate will be the legal owner of the deceased's goods, and he is responsible for paying all debts and securities.
Also Read: What Are National Saving Certificate and NSC Interest Rates in 2023?
Obtaining a Succession Certificate
The need for a succession certificate takes place when a person dies without declaring his legal heir and appointing a nominee. When the term nominee comes, it is simply related to the bank account or mutual funds. This certificate establishes the authenticity of the deceased’s legal heir and gives accessibility to take over the assets and debts as well. It is obtained for both movable and immovable properties.
Now here, you need to understand what is not obtained by the succession certificate. It does not authorise the legal heir as the title of the grantee. It only appoints him to collect the debts with authority. For the debtors, this is beneficial. He gets back his payments without any risks. Here you need to remember that the succession certificate is different from the heir certificate.
Procedure to Obtain a Succession Certificate
There are a few steps you need to follow, and there are also certain procedures. The person who has made the petition needs to be present in court. The whole process takes place under a civil court. Courts are decided based on the location of the applicant.
Step 1: Making the Petition for the Succession Certificate
On the petition, there must be some necessary details-
- The time of the death of the person.
- Residential or the property details of the deceased person at the time of death. this also falls under the judge’s jurisdiction.
- Other family members' details.
- All the details of the right of the petitioner with the deceased person’s assets.
- The certificate was not invalidated for any reason.
- In order to apply for such a certificate, one must identify the debts and securities involved.
To make a petition, these things need to be filled in. This is the work that should be done from the petitioner’s side. Here the judge of the court starts working. If he feels to interrogate the petitioner, he can. In that case, the judge can summon the petitioner and ask about the right of the deceased person with him. This can also establish the petitioner’s right as an oral submission. After that, the petitioner needs to wait for the judgement. On the specific hearing day, the judge declares his opinion. Checking all the documents, a judge decides the petitioner‘s grant in the succession certificate. Here the judge passes the order of the grant in the certificate and also makes it specific all about the deceased’s debts and security. It allows the applicant to receive the interest or negotiate. However, there are options to do both.
Step 2: Affidavit for The Succession Certificate
An affidavit is important for the petitioner. The legal heir of the dead person needs to file the affidavit to claim the assets or the property. This process takes place under the district or the high court. Here, the petitioner needs to submit some details again. The ration card is important here; along with that, some details need to be filled in.
- Name of the applicant
- The occupation
- The residential address of the applicant.
This affidavit is an essential part that needs to be done correctly. This affidavit is also a document that will declare the kin of the deceased. If the petitioner does not want to be the legal heir of the deceased, that also should be mentioned in this affidavit. When the petitioner files it at the court, the court will send the applicant’s notice to all the relatives of the kin of the deceased person. Not only that, the court will make a notice in the national daily to make it public. Within a certain period, if the court sees no complications are coming regarding the matter, it will issue the certificate. The normal period is approx 5-7 months from the date of application.
Step 3: Atonement Of Bond
After grants are done, there is a bond that needs to be signed. This is called the indemnity bond.
Validation of The Succession Certificate
If you have got the succession certificate, it will be valid anywhere within India. Though in a foreign country, there are some different rules. If an Indian representative who is appointed by the Indian Government is granted any certificate in a foreign country, the certificate will get validation when it is stamped with the court fees Act,1870. This is necessary to get the validation like a valid certificate in India.
What are the Effects?
The succession certificate is made with some real purpose. Any legal work can be done without any complacency with the certificate. It gives protection to both parties who are paying and also receiving debts. If the deceased was holding any kind of securities or mutual fund, after granting the certificate, it made clear how to receive the interest and dividend. The necessity of the certificate is clear here. One can legally operate all the financial work with legal validation.
Here is one thing you must know. The succession certificate holder can be or can not be the owner of the securities or legal heir. A legal heir certificate is different from a succession certificate.
Also Read: How to Get Income Certificate Online – Procedure & Format
Rules Of Succession Certificate
There are certain rules regarding the succession certificate based on the religion of the deceased.
The Hindu Male
- Hindu males come under all the Hindus, including the Buddhists, Jains and Sikhs.
- At first, the property will be passed on to the kin of the deceased. It will come under class 1.
- If the deceased person does not have any class 1 kins, it will pass on to the class 2 category relatives.
- If there are no class 2 relatives, the next focus will be the agnates. It can be the adopted child.
- If there are no agents, cognates will get the chance.
Female Hindu
- The first legal heirs will be the son or the daughters as well as the husband of the deceased.
- If they are not available, it will fall upon the husband’s heirs.
- Also, if there are no heirs available, it will go to the parents.
- First, it will go to the father; if the father is not available, it will go to the mother.
Christian
- In Christianity, one-third of the property will be given to the wife, and the rest will be divided among the children.
- If the wife is not available, the whole property will be divided among children.
- If children or wives are not available, the next heirs will be the relatives of the husband or wife.
- If anyone among them is not available, it will be divided into the deceased father or mother.
What is a Legal Heir Certificate?
The legal certificate and the succussion certificate both are very confusing. The difference needs to be clear so that you can understand what your requirement is. Having said that, a legal heir certificate is a documentation where all the information is given according to the legal heir; on the other hand, the succession certificate establishes the validity of the legal heir.
Conclusion
The succession certificate is needed when a person dies without having a will. In that case, to find the legal heir, one needs to apply for a succession certificate. To acquire this certificate, one needs to go through some procedures. In this article, we have discussed all the procedures and how one can make the petition. Here, we share various articles related to business ideas and hacks.
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