When an individual dies, the legal heirs must fulfil certain requirements before they can claim ownership of the deceased’s assets, such as real estate, bank funds, insurance, or shares. Both legal heirs and succession contracts are common documents used to demonstrate their rights. Although they are assessed as interchangeable, they actually serve different purposes, are issued by different authorities and are covered by different legal provisions.
This blog will explain the meaning, use, authority and procedure for both contracts, highlighting the major differences, and direct you to the type of contract you need depending on the potential assets.
What is a Legal Heir Certificate?
A Legal Heir Certificate is a document issued by the local revenue department that verifies the legal heirs of a deceased person. It shows the relationship of the deceased with the remaining family members, but does not automatically transfer the property of the deceased.
Purpose of a Legal Heir Certificate
This certificate is intended generally for administrative purposes, including –
- Applying for a family pension or gratuity from the government.
- Shifting electricity, water, or telephone connections.
- Updating records in property tax or revenue documents.
- Releasing salary arrears, provident fund or insurance claims of a deceased employee.
- Establishing the identity of a legal heir in government records.
Who Can Apply?
Legal heirs such as –
- Spouse (widow or widower),
- Children (sons and daughters),
- Parents, and
- Siblings (in the absence of the above).
They can apply for the certificate by submitting the application along with supporting documents to the local authority.
Documents Required
- Death certificate of the deceased.
- Identity proof of the applicant, like Aadhaar, PAN, etc.
- Provide proof of the deceased and the applicant.
- Family members’ details with relationships.
- Affidavit or self-declaration of relationship.
Once verified, the Tehsildar or municipal authority issues the certificate listing all recognized legal heirs.
What is a Succession Certificate?
A Succession Certificate is the document issued by a Civil Court under Section 372 of the Indian Succession Act, 1925. It authorizes the legal heirs to collect debts and securities of the deceased, such as –
- Bank deposits,
- Shares and mutual funds,
- Insurance amounts, or
- Bonds and other financial instruments.
Unlike a Legal Heir Certificate, a Succession Certificate has legal force and gives the holder the authority to manage and claim movable assets belonging to the deceased.
Purpose of a Succession Certificate
This certificate is mainly required for –
- Claiming movable assets like bank balances, fixed deposits, or mutual funds.
- Recovering debts owed to the deceased.
- Transferring or selling the financial assets of the deceased.
- Settling disputes related to movable property.
Who Can Apply?
Any legal heir or group of legal heirs of the deceased can apply by filing a petition in the District Court within whose jurisdiction the deceased last resided.
Documents Required
- Death certificate of the deceased.
- Identity and address proofs of the applicant.
- Details of all legal heirs.
- Details of the debts and securities for which a certificate is sought.
- Court fee and affidavit.
Once the court verifies all details and ensures no objections from other heirs or creditors, it issues the Succession Certificate to the applicant.
When Do You Need a Legal Heir Certificate?
A Legal Heir Certificate is required when –
- You need to update government records, such as pension, utility bills, or service benefits.
- You want to transfer ownership of property or vehicles.
- The deceased was a government employee, and you want to claim service-related dues.
- The process involves non-judicial or administrative verification rather than asset transfer through courts.
Essentially, it is the first step to establish heirship before approaching courts or financial institutions.
When Do You Need a Succession Certificate?
A Succession Certificate is mandatory when –
- The deceased held financial assets like deposits, bonds, or shares.
- You need to withdraw money or transfer investments held in the deceased’s name.
- There are multiple claimants to the same asset, and clarity is needed on rightful ownership.
- Financial institutions specifically demand court-issued authority for asset release.
In other words, the Succession Certificate provides the legal right to operate, transfer, or claim the deceased’s financial assets.
Can Both Certificates Be Required?
Yes, in some cases, both certificates may be needed.
For instance –
- A Legal Heir Certificate may be used to prove a relationship with the deceased, while
- A Succession Certificate is required to legally claim financial assets.
Thus, both documents often complement each other; one establishes identity, and the other grants ownership rights.
Validity and Limitations
- Both certificates are valid indefinitely unless cancelled or superseded by a court order.
- However, a Succession Certificate is valid only for the specific debts and securities mentioned in it.
- A Legal Heir Certificate does not automatically confer rights of inheritance; it is primarily for procedural recognition.
Conclusion
Both the Legal Heir Certificate and the Succession Certificate play crucial roles in succession planning and asset transfer after someone’s death, but they serve different purposes.
The Legal Heir Certificate is an administrative document used to establish family relationships and claim benefits like pensions or service dues, while the Succession Certificate is a court-issued document that gives heirs the legal right to claim movable assets.
In simple terms, for government or administrative purposes, use a Legal Heir Certificate. And for financial or legal asset claims, apply for a Succession Certificate through the court.
Understanding the difference helps avoid unnecessary delays, confusion, and legal complications during an already difficult time.
