Introduction: Delving into the complexities of posthumous property distribution, this article navigates the distinctions between Legal Heir and Succession Certificates. Originating from the Indian Succession Act of 1925, these certificates play pivotal roles in recognizing rightful heirs and empowering successors. Unravel the multifaceted layers of purpose, authority, documentation, and applicability associated with these legal instruments.
SHORT SUMMARY: The author will cover the “Difference between Succession Certificate and Legal heir Certificate” in this column.
In 1925, the Indian Succession Act was enacted, which outlines the regulations and procedures that pertain to the property, whether it be moveable or immovable property, of any individual who has passed away. There are two different types of certificates that are established by the Act. These are the Succession Certificate and the Legal Heirs Certificate. The possession of these Certificates is essential and required in order to acquire the assets of the deceased individual. Not only do these certificates demonstrate who is the rightful heir to the deceased person’s property, but they also establish who is the rightful claimant to the property of the deceased person.
The legal heir certificates and the succession certificates are two separate legal documents that serve different functions. This straightforward explanation will assist you in gaining a better understanding of the meaning of these terminologies in a speedy manner.
| Aspect | Legal Heir Certificate | Succession Certificate |
|---|---|---|
| 1. Purpose | Establishes the rightful heirs of a deceased person. | Grants authority to the person entitled to inherit and execute the properties and assets of the deceased. |
| The primary purpose of a Legal Heir Certificate is to officially recognize and document the legal heirs of a deceased individual. This certificate is often required to establish the inheritance rights of family members, allowing them to claim benefits, assets, and other entitlements left behind by the deceased. It serves as proof of relationship and heirship. | The Succession Certificate, on the other hand, goes beyond just identifying the heirs. It provides legal authority to the person entitled to inherit the assets and properties of the deceased. This certificate is essential when the deceased person has not left a will or when the will is not legally valid. It empowers the successor to settle debts, transfer or sell properties, and manage other financial matters on behalf of the deceased. | |
| 2. Issuing Authority | Issued by the local revenue authorities or municipal authorities. | Issued by a civil court having jurisdiction over the deceased person’s residence or the location of the assets. |
| 3. Scope | Primarily used for claiming assets, benefits, and rights of the deceased. | Gives broader authority to the successor to manage and distribute all assets and liabilities of the deceased. |
| It is primarily utilized to establish and prove the rightful heirs of a deceased person. Its main purpose is to facilitate the claiming of assets, benefits, and other entitlements by the legal heirs. | It grants legal authority to the successor to manage and distribute all the assets and liabilities of the deceased. This includes immovable properties, bank accounts, outstanding debts, and other financial matters. | |
| 4. Documentation Required | Typically requires documents like death certificate, relationship proof, and an application to the local authorities. | Requires a detailed application, death certificate, legal heirs’ details, details of assets, and any other documents the court may demand. |
| 5. Time Frame for Issuance | Generally issued faster than a succession certificate. | May take a longer time to obtain due to the legal process involved in court proceedings. |
| Since the process is typically handled by local revenue or municipal authorities, it may be more streamlined and less formal, resulting in a faster turnaround time. | Obtaining a Succession Certificate involves a legal process that includes court proceedings. The court needs to examine the evidence provided by the applicant, notify interested parties, and ensure that the succession is granted to the rightful heir. | |
| 6. Authority Over Assets | Limited authority, often specific to certain assets or benefits. | Comprehensive authority over all movable and immovable properties, debts, and other assets of the deceased. |
| 7. Use in Property Transactions | Limited to certain property transactions, such as transferring bank accounts or minor assets. | Essential for transferring or selling immovable properties like land and buildings. |
| A Legal Heir Certificate is often used for relatively simpler property transactions, such as transferring bank accounts, claiming minor assets, or dealing with less complex financial matters. However, it may have limitations when dealing with more substantial and complex immovable properties like land and buildings. | The Succession Certificate is crucial for property transactions involving immovable properties such as land and buildings. It provides legal authority to the successor to transfer, sell, or manage such properties on behalf of the deceased. | |
| 8. Applicability in Financial Matters | Primarily used for financial claims and benefits like insurance, provident fund, etc. | More comprehensive, covering all financial matters and assets, including bank accounts, debts, and properties. |
| This includes processing insurance claims, accessing provident funds, and handling other financial matters where the deceased had financial holdings. | The Succession Certificate has a broader applicability in financial matters. It covers all aspects of the deceased person’s financial estate, including bank accounts, outstanding debts, and various types of assets. | |
| 9. Litigation Involvement | Generally involves less legal formalities and court intervention. | Involves a legal process, with court hearings and notices to interested parties, making it a more formal and extensive legal document. |
| The process is generally more straightforward and may not require extensive court hearings or notices to interested parties. | The court process adds a layer of formality and may involve legal representation, making it a more extensive and legally binding document. |
Conclusion: After a person dies, their legal heirs and successors can be established with the help of a succession certificate or a legal heir certificate. While a legal heir certificate has a narrower purpose and is usually easier to get, a succession certificate is a more all-encompassing legal document with extensive jurisdiction over the estate of the deceased. Consider the specific needs of the individual and the nature of the assets and liabilities at play when making your choice between the two.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).
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