Legal Heir Certificate vs Succession Certificate

For the surviving family members, handling the financial and legal matters of a deceased family member may be a challenging and complex task. Among the numerous legal obligations to be fulfilled is getting the proper papers in order to administer the deceased's estate. The two primary documents that are pertinent in this instance are the Succession Certificate and the Legal Heir Certificate. Even though each has a distinct purpose, use, and legal implications, a lot of individuals commonly confuse them or use them interchangeably.

A legal heir certificate is used to establish a link between the departed and their legitimate heirs. However, when a deceased person leaves behind assets and obligations without a will, a succession certificate—issued under the Indian Succession Act—becomes essential.

To navigate the legal system and ensure a smooth transfer of the deceased's estate, it is imperative that the legal heirs understand the key differences between a succession certificate and a legal heir certificate.

What is a Legal Heir Certificate?

A legal heir certificate is a crucial record to have when a family member passes away. It creates the legal heirs' relationship with the departed individual. Parents, children, and spouses are a deceased person's legal heirs. To claim ownership of the deceased person's assets, the legal heirs must apply for and get the legal heir certificate. For more information on the process, you can read about How to obtain a legal heir certificate in India? 

To assert their claim to the deceased person's assets and debts, a legal heir certificate can be acquired from the municipality or company following the acquisition of the death certificate.To explore more, read more about Legal Heir Certificate.

What is a Succession Certificate?

An essential legal document issued under the Indian Succession Act is a succession certificate. It is given to the surviving legal heirs of a deceased individual whose will was not left. The bearer of a succession certificate is entitled to collect the debts and securities of the dead. It does not, however, grant them the legal right to be the properties' owners. The only assets owned by the holders of succession certificates are their transportable property, such as their bank accounts and other securities.

Key Differences Between Legal Heir Certificate And Succession Certificate

Before diving into the differences between legal heir certificates and succession certificates, one should understand the difference between an heir and a successor. Successors are the people who truly inherit a deceased person's property, whereas heirs are the people who have the legal right to do so. Stated differently, not every heir is a successor, but every successor is an heir.

Scroll through to know all the key differences:

Objective

A Legal Heir Certificate is issued by tax authorities or regional municipal organizations and is primarily used for non-financial purposes, such as identifying the legal heirs of a deceased person. It is also referred to by various names like family tree certificate, inheritance certificate, pedghinama, or varisu certificate in different regions. On the other hand, the Succession Certificate aims to facilitate heirs in managing the deceased's debts and transferring movable property.

Scope and Situations: When and Where to Use These Certificates

The Legal Heir Certificate is usually required to claim pensions, provident funds, insurance, gratuity, and other benefits accrued by the deceased. It can also be used in property-related matters, such as transferring or mutating immovable property. In contrast, a Succession Certificate is typically necessary to transfer debts, securities, bank account balances, or other financial assets when a person dies intestate (without a formal Will).

Application Areas: Real Estate vs. Financial Assets

The Legal Heir Certificate is used to receive benefits and transfer real estate. In contrast, the Succession Certificate is necessary for inheriting stocks, bonds, bank accounts, and other financial assets.

Examples in Practice: Usage of Legal Heir and Succession Certificates

Legal Heir Certificates are commonly used for claiming family pensions, insurance claims, unpaid salary arrears, and property transfers. Succession Certificates are used for managing bank accounts, securities, debts, and other financial assets of the deceased.

Eligibility: Who is Entitled to Apply?

Anyone who is a son, daughter, spouse, or parent of the deceased can apply for a Legal Heir Certificate. However, only a legal heir can apply for a Succession Certificate.

Legal Standing: Governing Laws and Validity

The Legal Heir Certificate is essential for collecting the deceased's entitlements but does not have the authority to transfer movable property. It is governed by local and state-specific legislation, not federal law. In contrast, the Succession Certificate is required for transferring movable assets and is governed by the Indian Succession Act of 1925.

Issuing Authorities: Who Grants These Certificates?

The Legal Heir Certificate is issued by local authorities such as tehsildars, talukdars, district revenue officers, or municipal administrative officers. In contrast, the Succession Certificate is issued by a District Judge under Section 381 of the Indian Succession Act, 1925.

Importance: Why These Certificates Matter

Legal Heirs, including parents, spouses, children, and siblings of the deceased, are eligible to obtain a Legal Heir Certificate. However, only the heirs of the deceased, typically children or grandchildren, can obtain a Succession Certificate from the relevant court.

Importance

Legal Heir Certificates are crucial for obtaining retirement claims, insurance, PF, gratuities, pensions, and similar benefits. In contrast, the Succession Certificate is used to transfer or take control of property, pay debts, secure assets on behalf of the deceased, or collect assets or debts on their behalf.

Verification and Approval: Understanding the Processes

To obtain a Legal Heir Certificate, one must apply to the local government or the deceased's employer with the required documentation, such as the death certificate and proof of relationship. The authorities may conduct an investigation and verify the claim, which usually takes a few weeks. For a Succession Certificate, a petition must be filed in a civil court, providing details of the deceased, legal heirs, and the assets involved. The court reviews objections and conducts hearings, a process that can take several months before issuing the certificate.

Fees and Costs: Comparing the Financial Aspects

The fee for issuing a Legal Heir Certificate is Rs. 2 for a stamp and Rs. 20 for stamp paper for the affidavit. For a Succession Certificate, a fee of three percent of the property's total value is assessed.

Timeframes: How Long Each Certificate Takes to Obtain

A Legal Heir Certificate typically takes 15 to 30 days to be issued. In contrast, obtaining a Succession Certificate can take five to seven months due to the mandatory 45-day newspaper notice period and potential objections.

Acquisition Process: Steps to Obtain Each Certificate

To obtain a Legal Heir Certificate, one must apply to the appropriate local municipality or regional administrative officer. The certificate is issued by authorities like the tehsildar or talukdar. For a Succession Certificate, a petition must be filed in the competent court of the deceased's hometown, and the court issues the certificate after all necessary verifications and public notice.

Validity and Limitations: Key Differences in Longevity and Use

The Legal Heir Certificate is valid indefinitely unless there are disputes or changes in heirs, but it is limited to specific uses like claiming insurance and pensions. It does not grant legal authority to sell or manage real estate. The Succession Certificate is valid unless annulled by a competent court and applies only to the debts and securities listed in the certificate. It does not grant ownership rights over real estate.

Term of Allotment: Timeline for Issuing Each Certificate

The Legal Heir Certificate is usually issued within ten to fifteen days. In contrast, the Succession Certificate may take up to two months to be allocated due to the mandatory public notice period.

Conclusive Evidence: Requirements for Legal Heir vs. Succession Certificates

No conclusive evidence is required for issuing a Legal Heir Certificate. However, a Succession Certificate is issued in accordance with the Indian Succession Act of 1925, which requires affirmative conclusive evidence.

Required Documents: What You Need to Apply

To obtain a Legal Heir Certificate, the original death certificate, identity card, ration card, names and relationships of family members, and an affidavit worth Rs. 20 on stamp paper are required. For a Succession Certificate, the death certificate, relationship details, time and location of death, and names of all legitimate heirs are necessary.

Subsidiary Documents: Additional Legal Considerations

A Legal Heir Certificate serves as a supplemental document in property transactions to assert legal heirship. The Succession Certificate is a court order that must be adhered to in the transfer or inheritance of movable property.

FAQ

Q1.What is the difference between heirs and successors

Heirs are individuals entitled to inherit a deceased person’s property as per the laws of inheritance. Successors, on the other hand, are individuals who succeed to the rights and titles of the deceased, which may include heirs and others such as nominees or executors.

Q2.Is legal heir certificate mandatory for property transfer

Yes, a legal heir certificate is typically required for property transfer to establish the legal heirs of the deceased and ensure rightful ownership. Without this document, transferring property might not be legally recognized.

Q3.Is a succession certificate important?

Yes, a succession certificate is crucial for the transfer of movable assets like bank accounts, securities, or debts of the deceased. It serves as proof of the rightful claimant’s authority to inherit the deceased's assets.

Q4.What is the alternative to a succession certificate?

The alternative to a succession certificate is a legal heir certificate, which identifies the legal heirs of the deceased. However, a legal heir certificate is usually applicable for immovable properties, whereas a succession certificate is needed for movable assets.

Q5.What is the validity of a legal heir certificate?

A legal heir certificate does not have a specific expiration date and remains valid as long as there are no disputes or changes in the legal heirs. However, it may need to be updated if any legal changes occur.

Q6.Can property be transferred without a legal heir certificate?

Property transfer without a legal heir certificate is challenging, as it may not be legally recognized. The legal heir certificate is necessary to establish rightful ownership and prevent potential disputes.

About The Author:

Adv. Pushkar Sapre serves as an Additional Public Prosecutor, bringing over 18 years of legal experience to the Shivaji Nagar Court, where he has been practicing since 2005-06. Specializing in Criminal, Family, and Corporate Law, Adv. Sapre holds a B.Com LL.B degree and has successfully handled numerous high-profile and sensitive cases on behalf of the Government of Maharashtra. His expertise extends to environmental law, having represented clients before the National Green Tribunal.