A Legal Heir Certificate is a document that establishes the relationship between the deceased and their legal heirs. It is necessary to transfer the ownership of the deceased’s assets.
Districts
Certificates
confidentiality
families supported
Application Submission
Submit application with sub divisional magistrate
Document Attachment
Attach all the documents required in the application
Verification Process
The sub divisional office verifies the documents and legal heirs
Spouse, children
or parents are considered legal heirs
Apply to
deceased ordinary residence district
Revoked If
defective or fraudulent
Protected from
lender’s claim
Power of
attorney allowed for some districts
Death certificate
is must
Issued
by Tehsildar
Income Tax not
applicable on transfer of assets to trust
Tax efficient
structure for inheritance planning
Stamp duty
applicable on transfer of assets to trust
Proabte
not required
Protection from
forced heirship
Well drafted
trust deed often cannot be challenged in court
Trustee to be
appointed for asset distribution
Flexibility to settlor
to control the assets till their life
FEMA/RBI rules
apply in case of Non resident trust
SEBI Approval
required for share transfers of listed company
| Situation | Legal Heir Certificate | Succession Certificate |
|---|---|---|
| Inheritance of Property in India |
|
|
| Accessing Bank Accounts |
|
|
| Claiming Life Insurance Benefits |
|
|
| Transferring Shares or Investments |
|
|
| Inheriting Debts or Liabilities |
|
|
| Property Sale or Transfer |
|
|
| Succession Planning | ||
| Nomination or Will Execution |
|
|
| CApplying for Government Benefits |
|
|
| Settling Legal Disputes |
|
|
| Requires Witnesses? |
|
No (Witnesses may not be required, but advisable for certain types of trusts) |
| Can Distribute Assets Immediately? |
|
|
| Guardianship | Can be desginated |
Can include provision for Minor care |
| Legal challenges | More susceptible |
Less suspectible |
| Court intervention ? |
|
| Legal Heir Certificate | Succession Certificate | Probate | Letter of Administration | |
|---|---|---|---|---|
| Definition | Establishes relationship with deceased |
Grants authority to successors |
Validates and executes will |
Appoints administrators |
| Purpose | Applicable for more than only financial matters |
Relevant to financial matters only |
Execute will, transfer property |
Distribute assets |
| Usage | To access pensions, transfer assets |
Transfer properties, claim debts |
Execute will, transfer property |
Distribute assets |
| Applying Authority | Local government authority |
Court having jurisdiction |
Court having jurisdiction |
Court having jurisdiction |
| Documentation Required | Relationship proof, death certificate |
Death certificate, other documents |
Will, death certificate |
Death certificate, application |
| Validity | Indefinite |
Limited (typically 6 months - 1 year) |
Indefinite |
Limited (until administration) |
| Scope of Authority | Establish relationship with deceased |
Transfer or claim assets |
Execute will, distribute assets |
Distribute assets |
| Process | Apply to relevant authority |
Apply to court |
Apply to court |
Apply to court |
| Examples of Usage | Pension claims, property transfer |
Debt claims, property transfer |
Will execution, property transfer |
Asset distribution |
| Effective after grantor's death |
|
|||
| Bypasses probate |
|
|
|
Depends on the terms |
| Offers asset protection | Limited |
|
Limited |
|
| Management of assets | Grantor retains control |
Trustee manages |
Trustee manages |
Depends on the terms |
| Can designate beneficiaries |
|
|
|
|
| Offers privacy |
|
|
|
Depends on the terms |
| Can hold specific assets |
|
|
|
|
