Succession Certificate
What is Succession Certificate ?
In accordance with the Indian Succession Act of 1925, a succession certificate holds legal validity as a document issued by a civil court. Its primary purpose is to bestow authorization upon the legitimate heir of a deceased individual, enabling them to lawfully inherit and transfer the assets and property left behind.
The necessity for obtaining a succession certificate arises when the deceased person has not executed a valid will. By facilitating the streamlined progression of the inheritance process, the succession certificate affords the heir legal protection and guarantees a seamless transfer of ownership.
CMS Team of Experts will Guide you -
To ensure accuracy and reliability in documenting the deceased’s shareholding, it is recommended to reconfirm share ownership with the company or its designated Registrar and Transfer Agents (RTAs). This involves obtaining updated information and verifying the deceased individual’s ownership of the shares. Once confirmed, the necessary supporting documents can be generated or prepared accordingly. This meticulous approach streamlines the handling of relevant processes and ensures a smooth and efficient execution.
Contact the legal professionals, provide a comprehensive explanation of the situation, and facilitate direct communication between them and the client, who are the rightful legal heirs.
- The attorney files the application in the prescribed format with the relevant civil court, typically in the jurisdiction where the deceased individual resided.
- All petitioners, who are the legal heirs, are required to attend the scheduled court hearings as specified in the court order.
- The attorney will manage the necessary steps involved in obtaining the inheritance certificate, which encompass handling the application, court procedures, and attending the two to three scheduled hearings.
- As part of the process, the court and attorney levy a predetermined percentage of the estate’s value as both court fees and attorney fees.
Modifying a Succession Certificate Altering the Official Document
As per the regulatory guidelines set by the Securities Exchange Board of India (SEBI), the esteemed capital market regulator, in the case of securities held in physical form, it is mandatory to transfer securities with a market value exceeding Rs. 200,000 which were invested by the deceased in a specific company, solely to the legal heir. This transfer can only occur upon the submission of the inheritance certificate as supporting documentation.
In the case of securities held in dematerialized form, wherein the market value of the beneficiary’s (deceased) account surpasses Rs. 500,000, the transfer of such securities to the rightful heir is contingent upon the submission of an inheritance certificate.
In situations where the legal heirs have already obtained the succession certificate, but certain securities’ details have been partially or incompletely included in the certificate, it becomes necessary to revise the certificate.
In such instances, it is the responsibility of the company or the Registrar and Transfer Agent (RTA) to formally request the inclusion of the remaining information.
The process for making changes to the succession certificate follows the same procedure as that of applying for a new inheritance certificate.
Upon completion of the processing, a new entry is appended to the existing inheritance certificate.
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