If the employer already knows the legal heirs he can release the same on ground of indemnity bond only.
My unmarried brother died without any existing nominee or any will ,
Legal heir certificate has been obtained by sisters and the brother .His employer is insisting on Succession certificate to pay his terminal dues like PF . Gratuity etc which would involves a non refundable deposit of 7.5 % in the court . Is this the provision in law or the employer is playing around ?
Asked 5 years ago in Property Law
Religion: Hindu
25 Answers
Since your brother died intestate leaving movable assets you need to apply for succession certificate to claim terminal dues
2) mere legal heir certificate is not sufficient to claim brother terminal dues
The father and mother are deceased . The legal heir certificate has been honoured by deceased brother’s bank and insurance companies . But not by his employer headquarter in Delhi which he served for 25 years .
Asked 5 years ago
Yes the succession certificate is needed for money or financial certificates wherein you have to show that you are one of the heirs.
1. Yes .... it is true that for all types of immovable and movable property claims, a "succession certificate" or a "letter of administration" from a Court is compulsorily required. This becomes necessary to avoid any futuristic disputes /claims from any legal heirs.
Advisable to obtain succession certificate as brother died intestate
Hello,
- The employer can not insist on succession certificate for the release of PF,gratuity and other benefits accrued to your deceased brother, when the legal heir certificate is a valid document for all purposes.
- You can also attach the copies of the death certificates of the parents to clarify to the employer about the nonexistence of any other legal heirs and execute affidavits undertaking responsibility for your statements.
- If the employer still insist on Succession certificate, you must get a legal notice issued to him.
Employer can demand SC. If nominee is appointed than nominee can collect the PF and gratuity.
Approch civil court for directions to release PF And gratuity on the basis of LHC.
1. Legal heirs certificate issued by the Government is an authenticated one and has to be honoured by your deceased brother's employer.
2. The employer can't insist only for Succession Certificate, when legal heirship certificate can suffice.
3. Send a legal notice to your deceased brother's employer to settle the matter based on the legal heirship certificate that's available and not to insist for Succession Certificate.
1. Yes since the terminal cu retiral benefit is a valid debt which would be discharged by the employer on making such payments to he legal heirs the demand for succession certificate is lawful.
2. In other words the legal heirs under statutory obligation to apply for successive certificate.
3. So apply for the same which doesn't tak more ha 7-8 months.
You can send them a legal notice and if not adhered can file a case in court for the needful.
For movable assets that is bank deposits, pf, gratuity a succession certificate is required so the employer is asking as per the provision of law.
See for banks there are RBI guidelines accordingly they on legal heir certificate released the find though succession certificate is a requirement as per law so the employer cannot be held accountable for it as he is legally right, you may request him to release funds on indemnity bond though in case he does not agree you have to apply for the certificate.
Yes the succession Certificate is necessary
7.5% is not fixed.
This fee depends on the amount and value of property for which the succession Certificate is required
- As per law, a Legal heir certificate is required for the following purpose:
1. For transferring properties and assets of the demised person to his successors
2. For claiming insurance
3. For sanctioning and processing family pension of the deceased employee
4. To receive dues such as provident fund, gratuity etc from the Government
5. To receive salary arrears of the deceased, state or central Government employee.
- However, a Succession Certificate establishes who the legal heirs are and the authenticity of the successor.
- It is a Certificate given to the successor of a deceased person who dies without leaving a will.
- It also indicates the relation of the certificate holder with the deceased , and the information about the time, date and place of death of the deceased.
- Hence, this Certificate holder has authority over the deceased person’s assets , and this assets may include Insurance, Mutual Funds, Pension/in Employees Provident Fund , Retirement Benefits or any other service benefits.
- Further , in the absence of nomination and a WILL of the deceased , it is adopted by some department as per their rules and procedure.
- Mostly banks are also required this certificate as well , depends on the amount and rules applied therein.
The class I legal heir to your unmarried brother who is reported to have died intestate is your mother.
If your mother is not living then the class II legal heirs are eligible to succeed to the estates left behind by him which includes his terminal benefits and other liquid assets.
The class II legal heirship certificate cannot be given by the revenue department, you may have to get either a succession certificate from court of law or get a declaration of successors by filing a declaration suit before the civil court.
You have to abide by the law and follow the legal procedures that has been envisaged in law for this purpose, you cannot claim exemption on this.
If a court fee or stamp duty to be paid then you may have comply with the same, however you may inquire the applicable rate for the stamp duty to be paid in this regard from a different lawyer in the local instead of depending on only one laywer alone.
If the employer is insisting on production of the succession certificate from the court competent, you cannot dispute or object to the legal requirement.
The legal heirship certificate issue by the revenue department is not legally valid because they are not authorised to issue class II legal heirs, the court only is the competent authority to declare the class II legal heirs, however the bank may use its discretion to disburse the money or the claim in respect of the amount belonging to the deceased account holder, however his employer is not bound by the decision taken by the bank in this regard.
The employer is strictly enforcing the law in this regard to avoid future legal complications that may arise due to this illegal act.
Hence you cannot put pressure on the employer to settle the same to class II legal heirs based on the certificate in your possession.
There is no legal infirmity in the employer's insistence on production of the succession certificate, so you may decide wisely instead of unnecessarily agitating over this petty issue.
Dear Sir,
You may obtain the succession certificate from the SDM of your area and then you may submit the same.
Respected sir/mam...
If his employer is not paying the PF and the existing money then send him Legal notice and warn him to sue him in the court of law..you can also get succession certificate from decree from court...it will take around 6 months ...so choice is upto you what you will do and decide...
Thank you
You have to obtain a succession certificate from court for immovable properties and for movable properties legal heir certificate.
And produce in the Bank and Employer plus Insurance company if your brother had taken any policy.
apply for succession certificate. To obtain succession certificate, a petition has to be filed before the District Judge within whose jurisdiction the deceased person ordinarily resided at the time of his death.
1. Succession Certificate is required to realise the liquid assets if there is no nomination made by the deceased.
2. The legal heirs will have to file a petition for Succession Certificate in the court of District Judge.
File an application before the district court for succession certificate.
This is the provision in law to claim movable assets of deceased as you have to prove your relationship with the deceased person before claiming his assets.
1. Legal heir certificate is required for claiming title of immovable properties of a deceased person.
2. Whereas Succession Certificate is required for movable properties like FD, PF amount etc.
3. So, you shall have to apply for Succession Certificate before the Court claiming succession for all his movable properties which you shall have to list out in the said application.
4. Maximum amount of Court fee to be paid for obtaining Succession Certificate is Rs.50k.
1. For a limited amount of money Banks and LIC accepts legal heir certificates or even affidavits.
2. For larger amounts from office and also Mutual Fund amount, FD etc., Succession Certificate issued by the Court will be required.