- 07-Jun-2025
- Cyber and Technology Law
When a person passes away, their bank accounts are typically frozen until the legal heirs are able to claim the funds. The process for transferring a deceased person's bank account to their heirs can vary depending on whether a succession certificate is needed. A succession certificate is often required when there is no will, but in certain cases, a bank account can be transferred without it. Understanding when this can occur and what the legal process involves is important for heirs navigating this situation.
A succession certificate is a legal document issued by the court that certifies the identity of the legal heirs and their entitlement to the deceased person's assets. Generally, banks require a succession certificate when the deceased person did not leave behind a will, especially in cases where the amount in the account is substantial.
One of the simplest ways to transfer a bank account without needing a succession certificate is if the account holder has designated a nominee. According to the Indian Succession Act, 1925, the nominee is typically entitled to the funds in the account after the account holder's death, provided the account type allows for it. In such cases, the bank may transfer the funds to the nominee directly, without the need for a succession certificate.
Many banks allow the transfer of small balances (usually below a certain threshold, such as Rs. 1 lakh) without the need for a succession certificate. The exact amount can vary by bank, and the bank may only require proof of death (such as a death certificate) and identification of the legal heirs, provided there is no dispute.
If the bank account is a joint account with a surviving account holder, the bank may allow the surviving account holder to take control of the account after presenting the death certificate of the deceased. This typically applies to accounts held jointly with rights of survivorship, where the surviving account holder automatically becomes the sole owner of the account upon the death of the other.
Even without a succession certificate, banks may require the following:
A certified copy of the deceased person's death certificate to prove the account holder has passed away.
This certificate is issued by the local authorities or the court and identifies the legal heirs of the deceased. This may sometimes suffice instead of a succession certificate.
Some banks require an affidavit from the legal heirs stating their relationship with the deceased person and that they have a right to inherit the deceased's assets.
A succession certificate is typically required in the following situations:
If the deceased person did not name a nominee for their account and the account balance is substantial, banks generally require a succession certificate to transfer the account to the legal heirs.
If there are multiple claimants to the estate or if there is a dispute over who the rightful heirs are, the bank may require a succession certificate to establish the rightful claimants.
In cases where the account is not joint and no nominee has been designated, and the amount is above the permissible limit, the bank will ask for a succession certificate before transferring the funds.
Mrs. Kapoor passes away and her bank account is in her name only. She has named her daughter, Priya, as a nominee. When Mrs. Kapoor’s family approaches the bank with the death certificate, the bank transfers the balance in the account to Priya without requiring a succession certificate, since she is the nominee. However, if Priya had not been named as the nominee, and the account balance was substantial, the bank would have required a succession certificate to proceed with the transfer.
Mr. Sharma’s father passes away, and Mr. Sharma is the sole legal heir. The bank where his father held an account requires a succession certificate due to the substantial balance in the account and the absence of a nominee. After applying to the court and obtaining the succession certificate, Mr. Sharma is able to transfer the account balance to his name.
If a legal heir certificate is available, it may sometimes be sufficient for smaller amounts or when there is no dispute over who the heirs are. A succession certificate, however, is a more formal court-issued document and may be required in more complex cases, especially when the account balance is significant or there are disputes among heirs.
If there is a dispute regarding who the legal heirs are or if someone contests the nominee’s right, the bank may require a succession certificate to ensure that the correct person receives the funds. In such cases, the heirs can approach the court for a determination of legal entitlement.
The procedure to transfer a bank account without a succession certificate generally involves submitting the death certificate, legal heir certificate, or affidavit along with identification proof. However, it is important to check with the bank for specific requirements, as they may vary between institutions.
Yes, bank accounts can be transferred without a succession certificate in certain cases, such as when there is a nominee, the amount is small, or the account is a joint account. However, if the account balance is large, there is no nominee, or there are disputes among heirs, a succession certificate will typically be required to legally transfer the account. It is important for heirs to understand the specific requirements of the bank and the legal options available to them.
Answer By Law4u Team
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