Succession Certificate is defined as a legally binding certificate granted by the Courts to the legal heirs of a person dying intestate leaving securities and debts. A succession certificate is given to the successor/heir of a deceased person who has not prepared a will in order to establish the authenticity of the successor and also to give the certificate holder an authority over the deceased person’s movable assets such as bank account, shares, fixed deposits debts and securities etc. Succession certificate gives security to all persons who are liable on such securities or owing debts with regards to all payments made to or dealings in good faith with a person to whom a succession certificate granted. It is necessary for claiming assets such as bank balance, shares, mutual funds investments, fixed deposits, etc. Banks and financial institutions ask for a succession certificate when releasing funds to a certain nominee who might not be registered as the legal beneficiary. In such circumstances, arguments and fights are bound to arise, and it is here that the certificate holds the most value. The document once assessed leads to the resolution of such disputes by legally deciding to whom the money must go to in situations like these. Similarly, it comes handy, when a large inheritance allowance is to be issued, and the heir’s legitimacy has to be validated.
Procedures for procuring a succession certificate:
- Application – The applicant must prepare a petition in the prescribed format and to be filed in the competent Civil Court. The petition must be filed by the legal heir of the deceased within whose jurisdiction the asset of the deceased is situated for claiming the asset. The petition must contain names of all heirs, place and date of death should be mentioned in the application. A copy of the death certificate also has to be produced.
- Notice in newspaper – Once the petition filed in the competent court, the court issues a notice to the concerned parties along with the public notice in newspapers and publicises a time frame of 45 days by which any one might be raised the objections along with the necessary documentation proof.
- Granting of certificate – After expiration of specific time period. If no objection is raised by anyone, then court issues a certificate in the favour of beneficiary. In the case of multiple beneficiaries, a joint certificate is issued. Multiple certificates for property will not have legally binding.
- Court Fee – Courts levy a fixed value of the estate as a court fee for issuance of the succession certificate. The court fee has to be paid in the form of judicial stamp papers, after which the certificate shall be duly signed and delivered to the legal heir of the deceased.
- Validity of Succession Certificate – A succession certificate has valid all over India. In case where a succession certificate is granted to a person who is resident of foreign country by an Indian representative accredited to that foreign country, it should be stamped in accordance with the Court Fees Act so that will stand valid in India.