What is a Succession Certificate? Its Importance
Do you know what a Succession Certificate is? What is its purpose of it? What is a property’s Succession Certificate? Don’t be concerned. We’ll go through all you need to know about it, just as we did in this blog. When we try to comprehend legal issues, they may be rather intimidating. Even more so when there isn’t a rule set in place to condense the information and show them all at once.
A succession certificate is issued to a deceased person’s successor who has not drafted a will in order to verify the successor’s legitimacy. The bearer of a succession certificate also has power over the dead person’s obligations and assets. The certificate holder has the authority to settle the deceased person’s debts and to transfer the deceased person’s securities.
Obtaining a Succession Certificate
A petition must be written and presented in the appropriate district court to receive a succession certificate.
The district court’s jurisdiction over a petition for a succession certificate would be determined by where the dead individual customarily resided at the time of his death. If no such location is known, the appropriate jurisdiction would be where any deceased person’s property might be discovered.
Obtaining a Succession Certificate Procedure
The following is the legal procedure for obtaining a succession certificate:
Step 1: Petition Drafting
After paying the relevant court fees, the applicant will draught a petition, verify and sign it, and submit it to the district judge in the proper authority.
Step 2: Presenting your case to the court
The district court judge will convene a pretrial hearing on the petition submitted by the candidate, and if the plea is approved, he will establish a date for the final hearing and notify everyone he thinks suitable of the hearing.
Step 3: Bond submission
The applicant may also be required to submit a deposit with one or more guarantees or get any other measure of security to cover any possible loss arising from the use or exploitation of the certificate by the district court.
Note that the district court has the authority to grant an extension for any debt or security that was not mentioned in the original application.
Specifics of the Succession Certificate Petition
The applicant must sign and verify the petition for the succession certificate before submitting it to the district court, and it must include the following information:
- The date and time of the deceased’s death.
- The deceased’s usual abode at the time of death; and, if that is not possible, the specifics of the property that falls within the supervision of the district judge to whom the claim is made.
- The deceased’s family or other close relatives, as well as their respective houses.
- The petitioner’s legal rights (applicant).
- There are no grounds to invalidate the certificate’s grant.
- The debts and securities that are the subject of the filing for such a certificate.
Affidavit of Succession Validity
The succession certificate is recognised across India. However, if a certificate is issued in a foreign nation by an Indian representative (as chosen by the government) accredited to that state, the certificate will only be recognised in India provided it is duly stamped in line with the Court Fees Act, 1870.
The Succession Certificate’s Impact
The certificate holder also has the authority to receive any income or dividends on the securities, as well as to negotiate or transfer the securities specified in the certificate. As a result, any payments made on behalf of the dead individual to and by the certificate holder will be legally lawful.
How much does a Succession Certificate cost?
When a petition is submitted, a particular sum must be paid in the form of judicial stamps, according to The Court Fees Act of 1870. The court imposes a set proportion of the value of the estate as the charge for a succession certificate. This proportion fluctuates from one state to the next across India. It usually amounts to 2% to 3% of the total estate value.
What Documents Are Necessary for a Succession Certificate?
The court must legally verify the petitioner’s claim to ownership before issuing a succession certificate. The court requires a certain set of papers to be attached and validated before the petition may be inspected.
The following are the documents required to get a Succession Certificate:
- The date and time of the dead person’s death.
- The dead person’s address at the time of death.
- Details about the dead person’s possessions.
- Complete information on the dead person’s family.
- Complete information about all of the dead person’s lawful heirs.
- The individual requesting a succession certificate has certain rights.
- Lists of the dead person’s assets, debts, and securities.
Succession Certificate and a Legal Heir Certificate Differences Listed Below:
The purpose of a succession certificate is to grant the holder the authority to do business on behalf of the dead individual. It guarantees that the person who receives the certificate will be able to take over the dead individual’s assets or securities and pay any outstanding obligations. The legal heir certificate, on the other hand, recognises the bearer as the dead person’s legal heir.
- Issuing authority — A district court judge issues a succession certificate, although the legal heir certificate can be issued by the municipality or the Tehsildars.
- Specifications – The list of assets, obligations, and securities, as well as the petitioner’s link to the dead individual, are included in the Succession Certificate. Only the lawful inheritors of a deceased individual are listed on a legal heir certificate.
- Effect – While the legal heir certificate bearer is entitled to inherit the estate, the Succession Certificate does not ensure that the holder is the eventual recipient of the estate.
- The amount of time necessary — A succession certificate requires at least 45 days to be formally given, but a legal heir certificate takes only 15-20 days.
- Assets – While succession certificates only mention moveable possessions, legal heir certificates can list any type of property.
According to the laws of succession, the individual is then allowed to compensate the assets. For claiming all types of immovable and moveable assets, such as bank balances, fixed deposits, investments, and so on, a succession certificate is required.