In our previous posts, we have comprehensively discussed about two of the most important documents required after a person's demise- the Legal Heir Certificate and the Succession Certificate.
Despite their apparent similarity, they are gained through different processes and have different legal objectives. This thorough guide seeks to dispel the mystery surrounding these records by outlining their distinctions.
LEGAL HEIR CERTIFICATE
MEANING AND PURPOSE
An essential legal document that certifies a deceased person's legitimate heirs is a Legal Heir Certificate. It acts as a proof of the departed person's legitimate heirs and their allotted portions of the property. This document is frequently needed when transferring property, making an insurance claim, or gaining access to additional assets that the dead person left behind. Information such as the names of the legal heirs and their relation to the deceased, as well as their corresponding inheritance shares is generally mentioned in a Legal Heir Certificate.
ISSUING AUTHORITY
Local government agencies such as the Municipal Corporation or the Revenue Department are the ones who issue this certificate. The process involves verifying the relationship between the deceased and the legal heirs.
SCOPE AND USE
A Legal Heir Certificate is essential for various legal and financial transactions, including:
Property transfer: Required for transferring the deceased person's property to the legal heirs.
Bank transactions: Facilitates accessing the deceased's bank accounts and other financial assets.
Insurance claims: Necessary for claiming life insurance benefits.
Pension claims: Required for claiming the pension of the deceased individual.
Legal proceedings: Used as evidence of the legal heirs in case of disputes or legal matters.
PROCEDURE TO OBTAIN
The process of obtaining a Legal Heir Certificate involves the following steps:
(i) Application submission: Submit a duly filled application form to the local revenue or municipal office.
(ii) Verification: The authorities will verify the details provided in the application and may conduct inquiries if necessary.
(iii) Issuance: Upon successful verification, the Legal Heir Certificate will be issued by the competent authority.
SUCCESSION CERTIFICATE
MEANING AND PURPOSE
A Succession Certificate is an official document granted to the surviving family member of a deceased individual in the absence of a will. The holder of the certificate may also settle the debts of the deceased and transfer the deceased's securities.
ISSUING AUTHORITY
The District Judge of the applicable jurisdiction issues a Succession Certificate. A petition needs to be written and submitted to the appropriate District Court in order to receive a Succession Certificate.
SCOPE AND USE
This primary aim of the certificate is to safeguard all parties making debt payments in cases when they are done so in good faith. Additionally, the certificate holder has the authority to negotiate or transfer the securities as specified in the certificate, as well as to receive any interest or dividend on the securities. As a result, all payments made on behalf of the deceased to and by the certificate holder will be recognized by law.
This does not imply, however, that the holder of the certificate is the legitimate successor or owner of the securities.
PROCEDURE TO OBTAIN
The process of obtaining a Succession Certificate involves the following steps:
(i) Petition preparation: The applicant will prepare a petition, verify and sign the same and submit it to the District Judge in the appropriate jurisdiction after paying the applicable court fees.
(ii) Court hearing: The District Judge will give an opportunity for the preliminary hearing of the petition filed by the applicant and if the petition is admitted, he shall fix a day for the final hearing in respect of the same and also send notice of the hearing to whomsoever he thinks fit.
(iii) Grant of Certificate: After hearing all the concerned parties, the Judge will decide if the applicant is within his right to apply for the Succession Certificate and shall grant the Succession Certificate to him if satisfied.
DIFFERENCE BETWEEN LEGAL HEIR CERTIFICATE AND SUCCESSION CERTIFICATE
The following are the points of difference between the Legal Heir Certificate and the Succession Certificate:
POINT OF DIFFERENCE | LEGAL HEIR CERTIFICATE | SUCCESSION CERTIFICATE |
Purpose | To stake a claim as a rightful heir to the estate of the deceased. | To gain authority to obtain the debts and securities of the deceased where a will has not been drawn up. |
Usage | Identifies and establishes the living heirs of a deceased person. | Establishes authority of certificate holder to inherit debts and securities of the deceased and provides protection to parties paying debts. |
Issuing Authority | Issued by local government bodies like Revenue Department or Municipal Corporation. | Issued by District Court. |
Required Documents | Application to local authority, Death certificate and Proof of relationship. | Petition to District Court, Death Certificate and Advertisement inviting objections. |
Time Required For Issuance | 15-20 days. | Several months due to mandatory objection period and Court process. |
Comprehending the differences between a Legal Heir Certificate and a Succession Certificate is essential for ensuring a seamless transfer of assets and meeting legal requirements following a person's demise. The Succession Certificate deals with the legal entitlement to financial assets, whereas the Legal Heir Certificate focuses more on creating a relationship with the deceased.
For a detailed guide on the Legal Heir Certificate, click here.
For a detailed guide on the Succession Certificate, click here.
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