What Role Do Succession Certificates Play In Inheritance Disputes?

A succession certificate is a legal document issued by a court to the legal heirs of a deceased person. It serves as proof of the heirs’ right to inherit the deceased’s movable property (such as bank balances, debts, and securities) and helps in resolving inheritance disputes. Here’s how it plays a role:

Role of Succession Certificates in Inheritance Disputes:

Establishing Legal Heirs:

A succession certificate provides a formal declaration of the legal heirs of the deceased. This helps to avoid disputes among potential claimants by clearly identifying the individuals who are legally entitled to inherit the deceased's property.

Clarifying Property Rights:

The certificate serves as proof that the holders are the rightful claimants to the deceased's estate, particularly for movable assets. This prevents unauthorized persons from claiming or misappropriating the deceased’s property, and it helps establish clear rights for inheritance.

Facilitating Financial Transactions:

The succession certificate is often required when the legal heirs want to claim the deceased’s debts, securities, or insurance policies. It helps the heirs receive payments from banks, insurance companies, or other institutions holding assets in the name of the deceased.

Resolving Disputes:

In cases where there are multiple claimants or challenges regarding the rightful heirs, the succession certificate can act as a solution by legally identifying who the true heirs are. This reduces the chances of prolonged disputes over the inheritance.

It acts as a legal instrument to resolve disputes where other documentation (like a will or probate) may be missing, incomplete, or unclear.

Court Proceedings:

To obtain a succession certificate, the heirs must file a petition in a civil court. This process involves presenting evidence to the court regarding the death of the deceased, the identity of the heirs, and their entitlement to the deceased's property.

If the legal heirs are not in agreement, the court can intervene to determine the rightful distribution of the estate.

Validity and Use:

The succession certificate is typically valid for the deceased person’s movable assets such as cash, stocks, bonds, or debts. It does not apply to immovable property, which requires a different legal process such as a probate or letter of administration.

Once issued, it helps the heirs to directly manage, transfer, or dispose of the movable assets, facilitating smoother inheritance.

Legal Framework for Succession Certificates:

Under the Indian Succession Act, 1925, a succession certificate is issued after a legal process where the heirs apply to the court. The court assesses the heirs' claims and issues the certificate if the petition is found valid.

The court considers various factors such as whether the deceased had a will (or not), the claims of potential heirs, and the presence of any contesting parties.

Example:

Suppose a person dies without a will, and there is a dispute over the inheritance of their bank account, which contains a large sum of money. The legal heirs (say, the spouse and children) apply for a succession certificate from the court. If no objections are raised, the court issues the certificate, granting the heirs the legal right to claim the funds in the bank account.

Conclusion:

A succession certificate is a crucial legal tool in resolving inheritance disputes, particularly when the deceased’s property is movable, and no will exists. It helps establish the rights of the heirs, provides legal clarity, and ensures that the deceased's assets are distributed fairly and according to law. In inheritance disputes, it can provide a formal resolution, reducing the potential for long, drawn-out conflicts.