SUCCESSION CERTIFICATE
When it comes to accessing inherited moveable assets in India, non-resident as well as resident Indians encounter numerous challenges. Stringent regulations of banks for releasing the wealth of deceased people throw legal heirs into turmoil since they are unfamiliar with the laws and processes for accessing these assets
Succession certificate gives authority to living heirs to inherit debts, securities and other assets that the deceased left behind it also grants the certificate holder the right to represent the deceased in the recovery of debts and securities owed to him or payable on his behalf under the Indian Succession Act, 1925.
A succession certificate is always required for accessing any type of movable asset, whether it be money locked up in bank accounts or investments of deceased persons in different investment instruments such as equities, government bonds, mutual funds, funds deposited in Indian post offices.
A succession certificate is different from a legal heirship certificate which is issued to identify the living heirs of a deceased person whereas a succession certificate is issued to establish the authenticity of the heirs.
Succession Certificate is issued in accordance with the Indian Succession Act 1925 after an application is submitted by a beneficiary in a court of competent jurisdiction. According to Section 380 of the Indian Succession Act of 1925, a succession certificate is valid all over India. A succession certificate is conclusive as against the person/persons liable to whom complete indemnification is provided for payments made, according to sections 381 and 386 of the Act.
The principle of Succession Certificate is restricted to obligations and securities such as provident fund, insurance, bank deposits, shares, or any other security of the Central Government or State Government to which the deceased was entitled.
A succession certificate can be utilized when banks, financial institutions, and private entities deliver funds to the nominee and the nominee refuses to cooperate in distributing the asset to the legal beneficiary. In terms of the obligations and securities covered by the succession certificate, a succession certificate does not influence adjudication of title of the deceased far less than that of the holder. Similarly, where the inheritance amount is substantial, a succession certificate may be useful to prove the claimant’s genuineness.
Petition for grant of succession certificate should be filed in the court of the District Judge under whose jurisdiction the deceased person used to reside at the time of death. In case the deceased did not have a fixed place of residence, a petition for grant of succession certificate can be filed in the court of the District Judge under whose jurisdiction any portion of the property owned by the deceased person is located. Application can only be brought by a person of sound mind who is not a minor and has an interest in the estate of the deceased person. A widow of the deceased, or another individual having a beneficial interest in the debt, may be entitled to interest. A succession certificate can also be issued to a minor through a guardian. The following information must be included in the petition for a certificate of succession:
- Time of death of the deceased
- Residence or details of the deceased’s property at the time of death under which the judge’s jurisdiction falls
- Details of the petitioner’s family or other close relatives
- No impediment to the issue of the certificate and a Copy of the death certificate.
After examining and verifying the petition, the court issues a notice to all parties involved and establishes a time limit during which any person who has an objection can address it. If no one objects to the notice are raised and the court is satisfied, the applicant will be granted the succession certificate. If there is more than one petitioner, the court may award them a certificate jointly, but for a single asset, the court will not grant more than one certificate. A court may sometimes require a bond with one or more securities, surety, or other protection to account for the debts and securities obtained by the succession certificate petitioner in order to indemnify those who may be entitled to a portion of the debt or securities.
Section 370 of the Indian Succession Act, 1925 specifically provides that a Succession Certificate should not be granted with respect to any debt or security in cases where a right to such property is required to be established by obtaining letters of administration or a probate however still in certain states, a probate and a succession certificate are compulsory to transfer the title of an immovable property.
The Succession Certificate serves as an authentic document that certifies that the person receiving the Succession Certificate is the rightful owner of the deceased person’s property. It also protects the successor against the loss of a debt or security owed to the deceased by transferring such to the legal heir with the help of Succession Certificate.
Consultation and Case Evaluation
- Initial Consultation: Provide detailed consultations to assess the eligibility and need for a Succession Certificate based on the specific assets involved.
- Legal Guidance: Explain the entire legal process under the Indian Succession Act, 1925, and address any questions the client may have about their rights and the inheritance process.
Power of Attorney (PoA) and Authorization
- Drafting PoA: Assist clients in drafting a Special Power of Attorney (PoA) to authorize the firm to act on their behalf in the Indian court system.
- Notarization and Apostille: Coordinate the notarization and apostille (or consular attestation) of the PoA in the NRI’s country of residence.
- Registration of PoA in India: Ensure the PoA is registered in India to make it legally valid for court procedures.
Preparation and Filing of Succession Certificate Application
- Document Collection: Guide clients to gather all required documents such as:
- Death certificate of the deceased
- Identity and address proof of the petitioner
- Proof of relationship with the deceased (e.g., birth certificate, marriage certificate)
- Details of the deceased’s movable assets (bank accounts, investments, insurance, etc.)
- Drafting the Petition: Prepare a detailed petition for the grant of the Succession Certificate for submission to the court of competent jurisdiction.
Representation in Court
- Filing in the Court: File the Succession Certificate petition with the District Judge in the jurisdiction where the deceased person lived or owned property.
- Court Appearances: Represent the NRI client during all court proceedings, ensuring timely submission of documents, appearance at hearings, and response to any court queries.
- Dealing with Objections: If any objections arise from other potential heirs or claimants, the firm will respond appropriately to defend the client’s application.
Issuance of Succession Certificate
- Notice and Publication: The firm will handle the publication of notices as required by the court and manage the process of hearing objections from other interested parties.
- Obtaining the Succession Certificate: Once the court is satisfied and no objections are raised, the firm will obtain the Succession Certificate from the court.
Asset Transfer and Distribution
- Coordinating with Banks and Financial Institutions: Once the Succession Certificate is granted, the firm will assist the client in presenting the certificate to banks, post offices, mutual funds, or other financial institutions to claim the deceased’s assets.
- Coordination with Nominees: In cases where nominees refuse to release the assets, the firm will act as the legal representative to ensure that the rightful legal heir receives the inheritance.
- Transfer of Ownership: Help with transferring ownership of movable assets such as bank accounts, insurance policies, and investments to the legal heir.
Additional Legal Support
- Advisory on Probate and Administration: If required, the firm can provide guidance on obtaining a Probate or Letters of Administration for immovable property, especially if there is any overlap between the need for a Succession Certificate and a Probate.
- Family Disputes Resolution: In case of disputes among heirs, the firm can offer mediation services or represent clients in legal proceedings to settle inheritance disputes.
We are here to help you for understanding more on Succession Certificate. Contact us now.