What's the difference between a succession cerificate & a letter of administration?
Raddhi
(Querist) 11 June 2012
This query is : Resolved
Hi,
My father has a DEMAT account for which there is no nomination. He passed away & is survived by wife & two children. We want to get the DEMAT assets transferred to my mother, & the bank is expecting us to provide Succession Certificate & Letter of Administration. Are both one at the same? If not, what's the procedure to get them in Bangalore?
Any guidance is appreciated.
Thanks,
Raddhi
K.K.Ganguly
(Expert) 11 June 2012
No, both are not same. Succession certificate is to be obtained by the successor/s when the owner of the property has demised intestate. Whereas Letter of Administration is applied when the owner of the property had demised leaving a Will without an executor.
Shonee Kapoor
(Expert) 12 June 2012
Agreed.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
J K Agrawal
(Expert) 12 June 2012
When a person dies some body required to manage all his property and to give it to proper persons in proper ratio. To pay to creditors and to recover money from debtors. If each heir will do it, it would be big issue of further disputs. So in case one dies without a will, the Court issues a letter of administration to any body most suitable (not necessary that he should be one of his heirs). If he dies leaving a will, then the court will grant probate to person preferably to a person appointed in the Will or to any other suitable person.
Succession certificate is totally different thing.
When any body like bank debtor or creditor in under confuse that to whom he should pay the amount payable to the deceased because there may be so many known or unknown successors. He do not want to take any risk and want a final and valid discharge so he says that he will pay to any body to whom the Court authorize for this. (it does not make any difference that one died intestate or left a testament)
Now the Court grant a Succession Certificate (to any body most suitable, not necessary that he should be his successor) and payment to him is a valid discharge against all the heirs.
Here, most of the Lawyers and even Courts are confused. Some points are to be noted about the Succession certificate that
That it does declare the person to whom it is granted that he is owner of the property
That the status of certificate holder is as of manager or trustee of the heirs of the deceased. He is to distribute the amount to them.
The succession certificate is not a document to declare that who is successor of the property and in which ratio he will get his share. For this, he has to file a civil suit to declare his share.
The purpose of succession certificate is not to establish the shares of successors but to assure the debtor that if he pays the money to Mr X it will be deemed that he has paid to every successor and no body will be entitle to ask again saying that he got nothing from him. All the successors then will take account from mr X.
The succession certificate is the document which is misused most. How funny it is that to provide compassionate service the Government ask for a succession certificate? It should ask only bond or a declaration of successors and consent for one from a Court.
Raddhi
(Querist) 16 June 2012
Thanks all for the information.
My father has not left a will. The bank is ready to accept with Succession certificate or Letter of Certificate. If this is the case, what do suggest is the less cumbersome method, considering the court procedure and the fees involved.
