Succession Certificate vs Legal Heir Certificate for NRIs: Which One Do You Actually Need?

When a parent dies leaving bank accounts, mutual fund units, shares, and a flat in Kolkata, most NRI heirs do one of two things: they either apply for a succession certificate for everything (and discover halfway through that it does not cover the flat) or they apply for a legal heir certificate for everything (and get turned away by every bank and demat account provider who asks for a court order).

The confusion is understandable. The two documents sound similar, are often confused by banks and revenue authorities themselves, and the process for obtaining each is entirely different.

This guide explains exactly which document covers which asset, how to obtain each without travelling to India, and the specific West Bengal rules that differ from the rest of the country.

The Core Distinction

The legal heir certificate tells the world who the deceased's heirs are. The succession certificate authorises those heirs to collect specific financial assets. They are different instruments serving different purposes.

For a property in Kolkata, you need neither of these — you need either probate (if there is a Will) or a legal heir certificate followed by mutation at the BL&LRO (if there is no Will).

Legal Heir Certificate: What It Is and How to Get It

A legal heir certificate is issued under state-specific laws by the local revenue authority — the Tahsildar in South India, the Sub-Divisional Magistrate (SDM) in North India and Bengal.

What it does: It records the names of the deceased's legal heirs and their relationship to the deceased. It does not authorise anyone to collect money or transfer assets. It is a statement of family identity.

Where it is used:

• Updating mutation records (transferring property name in revenue records from deceased to heirs)
• Claiming pension, gratuity, or provident fund from an employer
• Claiming insurance where no nomination was filed
• Transferring utility connections
• Establishing heirship before various government departments

Process in West Bengal:

Application to the SDM of the sub-division where the deceased last resided or where the property is located. Documents required: death certificate, proof of relationship (birth certificates, marriage certificate), identity proof of applicants, proof of residence of deceased.

The SDM conducts a basic verification and issues the certificate. The process takes 15-30 days in most districts. An NRI's Power of Attorney holder can apply on their behalf.

Succession Certificate: What It Is and How to Get It

A succession certificate is issued under Sections 370-390 of the Indian Succession Act 1925 by the civil court having jurisdiction. It is a court order authorising the holder to collect or receive payment of debts and securities of the deceased.

What it does NOT cover: Immovable property (land and buildings).

Where it is required:

• Claiming a deceased parent's bank account balance
• Transferring demat account holdings (shares, bonds, ETFs)
• Redemption of mutual fund units where no nomination was filed
• Claiming provident fund, small savings, or insurance proceeds where the insurer insists on a court order

The Court Process for Succession Certificate

Step 1: Drafting and filing the petition

The petition must state: the name, date of death, and last address of the deceased; the relationship of the petitioner to the deceased; the names of all other persons who have or may have interest in the estate; and a schedule of the specific assets for which the certificate is sought.

Step 2: Court fee

Court fee in succession certificate proceedings is ad valorem — calculated as a percentage of the value of the estate covered by the certificate. The rate is typically 2-3% of the stated value in most states.

Step 3: Notice and publication

The court issues notices to all legal heirs named in the petition. In many courts, the judge also directs publication of the petition in a local newspaper.

Step 4: Hearing and issuance

For uncontested matters, the judge hears the petitioner's evidence and passes an order granting the certificate. The certificate is issued in the petitioner's name and lists all the assets for which it is granted.

Can an NRI Obtain a Succession Certificate Without Travelling to India?

Yes. The entire succession certificate process can be completed by an advocate in India under a registered Power of Attorney from the NRI. The POA must specifically authorise the advocate to file and pursue the succession certificate proceeding, sign all documents, and receive the certificate on the NRI's behalf.

Probate: The Third Document NRIs in West Bengal Cannot Avoid

West Bengal is unique: Probate is mandatory in West Bengal for Wills dealing with immovable property. Even after the Repealing and Amending Act 2025 (which removed mandatory probate in most other states from December 2025), West Bengal continues to require probate for immovable property.

An NRI whose parent died leaving a Will for Kolkata property cannot sell, transfer, or mortgage that property until probate is obtained from the Calcutta High Court.

For intestate (no Will) estates in West Bengal: If there is no Will, probate is not required. The heirs establish their rights through a legal heir certificate and proceed to mutation at the BL&LRO.

The Dayabhaga Dimension for Bengali NRIs

West Bengal follows the Dayabhaga school of Hindu law, not the Mitakshara school followed in the rest of India.

Under Dayabhaga:

• A son has no birthright or coparcenary interest in the father's property during the father's lifetime
• The father has complete testamentary freedom — he can leave his entire property to any person by Will
• There are no automatic coparcenary rights that a son can claim against the Will

For NRIs inheriting under a Bengali Hindu father's Will, this is actually protective — the Will has full legal force and cannot be successfully challenged by other heirs on the basis of coparcenary rights (as might be possible in Mitakshara states).

What Happens to a Nominee's Claim vs Legal Heir's Claim?

A nominee in a bank account, demat account, insurance policy, or mutual fund can claim and receive the assets after the account holder's death. The institution is legally discharged when it pays out to the nominee.

However, a nominee is a trustee — not the legal owner — of those assets. The legal heirs can recover the assets from the nominee through civil proceedings supported by a succession certificate.

The Supreme Court has consistently held that a nominee's rights are not superior to legal heir rights.