Difference Between Succession Certificate & Letter Of Administration
The modern world is socioeconomically structured such that the debts and securities of an individual form an essential aspect of their lives. Post the death of the individual, this measure of his assets is bequeathed upon a legally appointed successor. Succession Certificates and Letters of Administration are two necessary constituents of the legal framework concerned with the nuances of property succession.
Succession Certificates
In the event of an individual dying intestate, a Succession Certificate is legally necessary for their successors to stake claims over the assets of the deceased. This pertains to the debts and securities of the deceased.
Following the Indian Succession Act, 1925, a Succession Certificate is a document that affords, to its holder, the power to represent the deceased for the purpose of collection (or payment) of debts and securities that are pertinent to the deceased individual.
The Relevant Formalities:
● The grant of a Succession Certificate requires the filing of a petition under the District or High Court under whose territorial jurisdiction the assets under consideration are located.
● The court, post examination of the petition, issue a notice to all concerned person(s) — legal heirs and close relatives. The notice is advertised in a newspaper as well.
● The court specifies a period of time within which any of the concerned individuals can raise their possible objections against the grant of a Succession Certificate to the application in question.
● Post expiry of this period, in the absence of any objections, the court can grant the certificate to the applicant. The procedure usually takes anywhere between five to seven months.
The format of a Succession Certificate usually sports the following constituents -
● Details of the deceased and the appointed successor
● Details of the relation between the concerned individuals
● Details of the death of the deceased
● Details of the debts and securities of the deceased
● Declaration of the intestate death of the deceased
● The grant of authority to the successor.
In certain scenarios, as in the presence of a will, a succession certificate can not be issued. Such a situation requires a letter of probate or a Letter of Administration for the purpose of management of the estate of the deceased.
What is a Letter of Administration?
A Letter of Administration is a document issued by a relevant authority (probate court), appointing an administrator for the purpose of management, and settlement, of the estate of a deceased, in accordance with the pertinent laws guiding such a transfer of assets.
A Letter of Administration is issued in the following scenarios -
1. In the event of intestate death of the individual prior to the appointment of an Executor.
2. In the event of renunciation of the Executorship, on the part of the Executor.
3. In the event of inability, on the part of the Executor, to cater to the administration of the estate. The reason behind such inability might be the death of the Executor prior to administration of the will of the deceased, mental insolvency, etc.
How to get a Letter of Administration?
In the presence of an Executor named in the will of the deceased, a Letter of Probate is granted to the Executor. In the absence of any such appointed executor, the heirs and close relatives of the deceased can apply to the relevant probate courts for getting a Letter of Administration. The petitioner who is granted the Letter of Administration is afforded the same rights as an Executor.
To receive the grant of a Letter of Administration an application has to be made to the District Judge of the court having jurisdiction over the area where the deceased last resided, or where the assets under consideration are located.
The court, post assurance that the will has been properly executed, can grant a Letter of Administration to the applicant. The application for a Letter of Administration is contained in Schedule VII of the Indian Succession Act, 1925.
An application for a Letter of Administration can only be made by a petitioner after fourteen days from the death of the deceased.
In a scenario where no concerned individual has petitioned for a Letter of Administration, the court can grant the same to a creditor of the deceased. The court can grant Letters of Administration to more than one individual if multiple applications have been made for the same.
The Application for a Letter of Administration format incorporates the following constituents -
1. Details regarding the death of the deceased.
2. Enlistment of surviving heirs and beneficiaries of the deceased.
3. The right to petition on the part of the application for the Letter of Administration.
4. Summarisation of assets under consideration.
5. Affixture of documents such as Death Certificate, Proof of Relationship, Property papers, and the like.
6. Other documents the court might deem necessary.
The Difference Between Succession Certificate and Letter of Administration.
A Succession Certificate is not granted in a scenario where a petition for a Letter of Administration might be deemed necessary by the relevant authority. If the estate of the deceased is constituted solely of movable assets, a Succession Certificate is considered necessary for the administration of the estate. In the event of the estate consisting of both movable and immovable assets, or only immovable assets, an application has to be made for getting a Letter of Administration.
In the event of the death of a deceased without the presence of a will, given that there is sufficient reason to believe in the existence of one, the District Judge can grant transient Letters of Administration, applicable till the procurement of the original will, or an authenticated copy of the same.