A succession certificate, under the Indian Succession Act, is a document that gives authority to the person who obtains it, to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. Generally, a Succession Certificate is a key in the non-attendance of a will, it will be the main document through which the heirs can stake a claim to the assets of a deceased relative.
When the deceased person has left a validly executed Will, then in such case Succession Certificate cannot be granted. For a succession certificate, one should need to apply to a magistrate or a high court. Usually, courts have a separate cell that issues succession certificates. When it comes to immovable property, there are other documents, like, for instance, a gift deed, that can help. This certificate authorizes successor(s) to realize debts and securities of the deceased person.
The right to apply for a Succession Certificate is only given to the Legal Heirs of the deceased. On making the petition, if the District Judge is satisfied as to the ground of making the petition, may pass an order for grant of certificate specifying the debts and securities set forth in the application empowering the person to receive interest or dividend or to arrange or transfer or do both.
It is significant, and proper advice should be sought while making and implementing these. Mostly Banks don’t release funds or FDs without a document of this type granted to the successor. It is applied for movable assets like bank deposits, stocks and securities, mutual funds, post office schemes, provident funds, gold and jewelry, insurance maturity benefits, vehicles and any other personal property.
DIFFERENCE BETWEEN SUCCESSION CERTIFICATE AND HEIRSHIP CERTIFICATE:
|Particulars||Succession Certificate||Legal Heir Certificate|
|Applicability||To gain authority to obtain the debts and securities of the deceased where a will has not been drawn up.||To stake a claim as a rightful heir to the estate of the deceased.|
|Contents||Relationship of the applicant to the deceased and the list of debts and securities sought.||Lists all the legal heirs of the deceased.|
|Function||Establishes authority of certificate holder to inherit debts and securities of the deceased and provides protection to parties paying debts.||Identifies and establishes the authority of living heirs of a deceased person.|
|Effect||The holder may not be the ultimate beneficiary of the estate of the deceased.||The holder is entitled to inherit the estate.|