When a family member passes away leaving behind financial assets like shares, claimants are often confused by the terminology used by banks and companies. Two common documents requested are the **Legal Heir Certificate** and the **Succession Certificate**. They are NOT the same.

1. Legal Heir Certificate

A **Legal Heir Certificate** is primarily issued by revenue officers (like Tahsildars) to identify the living heirs of a deceased person.

  • Purpose: Generally used for claiming gratuity, pension, PF, or transferring utilities (electricity, phone).
  • Limitations: It is usually NOT accepted by courts or for transferring immovable property or significant financial assets like shares, especially if there is a dispute or high value.

2. Succession Certificate

A **Succession Certificate** is a document issued by a competent Civil Court.

  • Purpose: It grants the holder the authority to represent the deceased for the purpose of collecting debts and securities (like shares, mutual funds, bank deposits).
  • Legal Weight: It provides full indemnity to the company transferring the shares. This means once a company transfers shares based on this certificate, they are legally protected from future claims.

Which one do you need for Shares?

For transmission of shares, SEBI guidelines typically specify:

  • If the value of shares is **below ₹5 Lakhs** (per company), a Legal Heir Certificate *might* suffice along with an Indemnity Bond, depending on the company's policy.
  • If the value exceeds the threshold (often ₹5 Lakhs, but varies), a **Succession Certificate** (or Probate of Will) is mandatory.
Expert Tip: Obtaining a Succession Certificate can take 6-12 months legally. It is crucial to consolidate all assets (shares across all companies) into one petition to save time and court fees.

Choosing the wrong path can waste months. Always assess the total valuation of the portfolio before filing for any legal document.