What Is The Difference Between Will And Succession Certificate?

In matters of inheritance and property distribution after a person’s death, two key legal documents often come into play: a will and a succession certificate. While both serve as tools for distributing a deceased person’s assets, they have distinct purposes, procedures, and legal implications. A will is a document in which a person outlines their wishes regarding the distribution of their property, whereas a succession certificate is a legal document issued by the court to the legal heirs when a person dies intestate (without a will). Let’s explore the differences between these two important legal instruments.

Difference Between Will and Succession Certificate:

Definition:

Will: A will is a legal document created by a person (the testator) that specifies how their assets and property should be distributed after their death. It can also name an executor to carry out the testator’s wishes.

Succession Certificate: A succession certificate is a court-issued document given to the legal heirs of a deceased person, confirming their right to inherit the deceased's assets, particularly debts and securities, when the person has died intestate (without leaving a will).

Purpose:

Will: The main purpose of a will is to express the testator’s intentions regarding how their property, wealth, and other assets should be distributed upon their death. A will allows the testator to decide who inherits their estate, and it can also specify guardianship for children, charitable donations, etc.

Succession Certificate: A succession certificate is primarily used to claim or transfer debts or securities such as bank accounts, insurance policies, bonds, shares, and similar financial assets of the deceased. It does not cover the physical assets such as property, land, or personal belongings.

Creation Process:

Will: A will is created by the testator during their lifetime. It is usually prepared with the assistance of a lawyer and must be signed by the testator in the presence of witnesses to make it legally valid. The will can be changed or revoked by the testator at any time.

Succession Certificate: A succession certificate is obtained by filing an application in the district court where the deceased last resided. The legal heirs must submit necessary documents such as the death certificate, proof of relationship, and the deceased’s asset details. The court issues the succession certificate after verifying the claim and resolving any objections.

Requirement for Obtaining the Document:

Will: A will is typically valid without court involvement, unless there is a dispute or if it requires probate (formal validation by a court, which is required for certain types of wills, such as those of Hindus in some cases). The executor named in the will can directly manage the estate.

Succession Certificate: A succession certificate is required when a person dies intestate (without a will). Legal heirs need to approach the court to obtain the certificate, especially when dealing with the deceased’s financial assets like bank accounts, government bonds, or insurance claims.

Authority to Act:

Will: The executor named in the will has the authority to administer the estate and distribute assets according to the deceased's wishes. If no executor is named, the court may appoint one.

Succession Certificate: The legal heirs, once granted the succession certificate, can claim the deceased’s debts and securities, and transfer the deceased's assets into their name. The certificate does not grant authority to distribute the deceased’s property other than debts and securities.

Court Involvement:

Will: If a valid will exists, there may be no immediate need for court intervention, except in cases where probate is required. Probate validates the will and allows the executor to execute the testator’s instructions.

Succession Certificate: A succession certificate requires court involvement. Legal heirs must file an application in court, which will issue the certificate after reviewing the necessary documentation. If there are objections or disputes, the court will resolve them before issuing the certificate.

Legal Effect:

Will: A will has immediate effect after the death of the testator, and the executor is authorized to act in accordance with its terms. If the will is challenged in court, it may delay the process of distributing the estate.

Succession Certificate: A succession certificate has limited effect in that it only allows the legal heirs to access and manage certain financial assets like debts, insurance claims, and bonds. It is not applicable for other types of property such as real estate or personal belongings unless there is no will and a proper inheritance process is followed.

Time Frame:

Will: The distribution of assets through a will can be done relatively quickly, depending on the complexity of the estate and whether probate is needed. If no issues arise, it can be completed in a few months.

Succession Certificate: Obtaining a succession certificate can take several months, sometimes even longer, especially if there are objections or if the court needs additional time to process the application and verify the documents.

Scope of Assets:

Will: A will can cover all types of assets, including immovable property (like land or a house), movable property (bank accounts, shares, etc.), and specific personal belongings.

Succession Certificate: A succession certificate primarily applies to debts and securities of the deceased, such as bank balances, insurance policies, and other financial assets. It does not cover physical assets like land or personal items unless they are part of the deceased’s financial holdings.

Example

Case 1:

Mr. Sharma leaves a will specifying that his son will inherit his house, his daughter will get his jewelry, and his wife will receive his savings account balance. After his death, the son, daughter, and wife are able to claim their shares directly, following the instructions in the will, with the help of an executor. If there was no will and Mr. Sharma passed away intestate, his legal heirs would need to apply for a succession certificate to access his financial assets, such as his savings account.

Case 2:

Mrs. Gupta passed away, and there is no will. Her children apply for a succession certificate to claim her bank accounts, insurance policy, and investments. Once the court grants the certificate, they can access the funds in her bank accounts and transfer them to their names. However, the real estate property that she owned will require the legal heirs to follow other procedures for transfer.

Conclusion

The key difference between a will and a succession certificate lies in their function, legal process, and the types of assets they cover. A will is a document expressing the deceased’s wishes and is used to distribute both movable and immovable assets, whereas a succession certificate is specifically used for transferring financial assets like bank balances, bonds, or insurance policies in cases of intestacy. While a will may not always require court involvement unless probate is needed, a succession certificate necessitates court intervention, especially when the deceased has died without a will.