Succession Certificate and the procedure to acquire it

One of the major issues at the time of death of an individual is regarding his/her successor of property. This pertains to who will take care of the property, who will pay off his debts, who will accept money due to him etc.

If a person makes a Will, the property gets distributed as per the tenor of the Will. The executor of the Will takes care of the responsibilities and liabilities of the deceased. 

If a person dies intestate, the family members have to obtain a succession certificate. 

This certificate is not issued if there is a Will, but some states require both probated Will and a succession certificate.

Succession Certificate and its need:

• The primary purpose of this certificate is to facilitate the collection of debts and to provide protection to the parties paying the debts. 

• It is not granted for immovable property.

• It verifies the authenticity of a legal heir. 

• This certificate is mainly granted for taking care of debts and securities of the deceased dying intestate.

• is merely a representative of the deceased

• gets the right to claim the property of the deceased

• gets the right to collect all dues payable and a duty to pay off the debts

Who can apply for the succession certificate?Where to apply?

• Death certificate 

• Details of debts and securities for which this certificate is applied for

• Name and address of the Legal heirs / Family members 

• Name, address and occupation of the person applying 

• A ‘No Objection Certificate’ from the legal heirs other than the applicant

• The applicant has to show the absence of any reason to grant him the certificate.

• Right of the applicant

1. The application is filed in the relevant Court.

1. Appropriate Court fee is paid in the form of judicial stamp papers (as per the value of assets which varies from place to place). 

1. A notice is sent to :

• All the persons named in the application as respondents (the opposite party)

• To any person, the Court may consider necessary

• A notice is published in the newspaper 

• The judge may ask the applicant to provide an Indemnity bond with any surety or security to ensure that there is no possible loss by use or misuse of this certificate.

Authority of the holder:

• to pay off the debts

• to receive any interest on the securities

• to transfer and negotiate the securities

• to receive other financial benefits on the securities 

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It is a legal document providing authority to the holder to manage the assets and liabilities of the deceased.

The holder of the certificate: 

A person who has an interest in the estate of the deceased can apply for the certificate. The interest may be as a relative or as a beneficiary of the security. 

The application is filed in the prescribed format in the Court within whose jurisdiction the deceased person had his residence or within whose jurisdiction the property of the deceased lies. 

Necessary particulars to be given while applying for Succession certificate:

Procedure:

The notice is sent to invite the objections to the grant of this certificate. 45 days period is given to file objections in the Court. When the said period is over, a date is fixed for hearing of the case.

4.     On the date of the hearing, all the parties are heard, and the certificate is granted.

Once the certificate is granted, the holder of the document gets the authority:

The debts and securities are mentioned in the certificate. 

This certificate is valid throughout India. If it is granted to a resident of a foreign country by an Indian representative accredited to that State, it will be valid if it is stamped according to the Court Fee Act 1870.

Financial institutions generally require this certificate for releasing bank deposits, provident fund, share money and loans.