Know the difference between succession certificate and legal heir certificate

What is a succession certificate?

Asuccession certificate, issued by a civil court underthe Indian Succession Act, 1925 (Part X, Sections 370–390), authorises the holder to collect and managemovable financial assets like bank accounts, shares, or bonds when the deceased leaves no will or executor. It’s vital for contested cases or high-value assets, offeringjudicially enforceable authority to settle debts and securities.

In a 2022 Madras high court case, P. Venkatachalam vs The Tahsildar (2022 LiveLaw (Mad) 265), petitioners challenged the authority of tahsildars to issue legal heir certificates for Class-II heirs (e.g., paternal relatives) in intestate succession. The court clarified that a legal heir certificate only confirms the relationship between the deceased and their heirs.

It cannot replace a succession certificate, which is mandatory for claiming debts or securities under the Indian Succession Act. The court also struck down a 2019 Tamil Nadu circular limiting legal heir certificates to Class-I heirs, calling it illogical, and ordered revised guidelines. This ruling highlights the critical role of a legal heir certificate in financial asset disputes.

What is a legal heir certificate?

Alegal heir certificate, issued by revenue authorities like tahsildars or municipal officers, identifies the deceased’s legitimate heirs. Used inuncontested scenarios, it facilitates administrative tasks such as transferring property titles, claiming pensions, or updating utilities. Governed by state-specific rules, it’s faster and cheaper but holdslimited legal weight in disputes compared to the Indian Succession Act.

A senior citizen’s daughter once approached our office after her father’s passing. He had no Will, but had left behind multiple fixed deposits and mutual funds. The bank refused to release the funds based on a legal heir certificate alone. They required a succession certificate, especially since another family member had also claimed entitlement. Without the correct certificate, she spent over five months in legal back-and-forth.

Choosing the wrong certificate can be costly. One client assumed a legal heir certificate would unlock her late spouse’s demat account. Due to the portfolio’s value and a minor objection from a relative, the registrar required a succession certificate. The process took six months, delaying funds and causing distress. Early consultation with an advisor could have streamlined the process.

Debunking myths

A common misconception, particularly in states like Karnataka, is that legal heir certificates are exclusively for families of government employees. While Karnataka’s 2025 policy imposes restrictions on pension-related cases, most states permit broader use for private asset claims, such as property transfers or insurance, when uncontested.

Courts, as seen in P Venkatachalam vs The Tahsildar, have intervened to ensure revenue authorities issue legal heir certificates appropriately, reinforcing their utility in straightforward inheritance matters.

Practical guidance

• Choose wisely: Use a succession certificate for movable financial assets, especially in disputed or high-value cases. Opt for alegal heir certificate for routine, uncontested tasks.
• Consult experts: Inheritance laws vary by state. A lawyer can recommend the right document based on the estate’s specifics.
• Plan ahead: A well-drafted Will can eliminate the need for either certificate, saving your heirs time and effort.

Distinguishing between a succession certificate and a legal heir certificate is essential for seamless inheritance in India. Real-life cases like Venkatachalam and others highlight how the wrong choice can trigger delays or disputes. By selecting the appropriate documents, heirs can efficiently access assets, minimise legal hurdles, and honour the deceased’s legacy in a hassle-free manner.

Shraddha Nileshwar, head – will & estate planning at 1 Finance. Views are personal