Civil courts issue succession certificate in Pakistan for the deceased’s legal heirs. The main purpose of a this certificate typically pertains to any tangible properties belonging to them, such as cars, bank accounts, and jewelry that remain after they pass away; sometimes, this process becomes more complex when competing claimants make competing demands on similar properties and assets that must then be decided upon by courts. We invite you to seek advice as our experienced team has extensive knowledge regarding succession certificates & how best to get them issued for our clients.
| Law of Succession 1925, or Succession Act 1925, governs all procedures associated with succession certificates in Pakistan. |
A succession Certificate is necessary to transfer the deceased’s property to their legal heirs, such as insurance claims, money in bank account(s), stocks, prize bonds, Stock exchange shares, etc.
What is the purpose of a Succession Certificate?
In Pakistan, issuing a succession certificate by a civil court plays a crucial role in facilitating the transfer of assets to the legal heirs of a deceased person. This legal document serves as proof of the rightful inheritors and grants them the authority to manage and transfer the assets.
Establishing Succession Certificate Legal Heirship
One of the primary purposes of this certificate is to establish the legal heirship of individuals entitled to inherit the assets of a deceased person. The certification ensures that the rightful heirs are officially recognized and have the legal authority to claim and manage the deceased’s assets.
Facilitating Asset Transfer
These certificates are beneficial when transferring assets, such as bank accounts, stocks, and properties, from the deceased to the legal heirs. Banks, financial institutions, and other entities often require a succession certificate as proof of legal authority to process such transfers. This document eliminates confusion and dispute, providing a secure and efficient mechanism for asset distribution.
Resolving Inheritance Disputes
Inheritance disputes can arise when multiple claimants believe they are entitled to a deceased person’s assets. In such cases, a succession certification serves as an essential tool for resolving conflicts and establishing a fair distribution of assets. The certification helps prevent legal battles and ensures a transparent process by verifying the rightful heirs.
Accessing Deceased’s Financial Accounts
Upon the demise of an individual, their financial accounts are often frozen until the legal heirs are determined. Banks require a succession certification to access such reports to ensure the person claiming the inheritance is the rightful heir. This certificate enables the legal heirs to manage the deceased’s finances, including withdrawing or transferring funds.
Administering the Estate According to Law
Obtaining a succession certification is often a necessary step in administering the estate of a deceased individual by Pakistani law. By proving heirship, the certification allows the legal heirs to execute the will’s provisions, settle outstanding debts, and distribute assets as per the applicable inheritance laws.
How To File An Application For Succession Certificate?
There Are Two Methods Available to Apply for a Succession Certification:
- Legal Heirs may file a joint application in court with consent from other heirs to petition for succession certificate issuance to one legal heir only, who then distributes property among themselves and any potential legal Heirs. The court then rules in favor of that particular legal heir, who then passes on any proceeds of this application back out among themselves as property is divided among each legal heir.
- The second method to obtain a succession certificate involves all legal heirs applying to get one, with the court issuing certificates according to each heir’s share in property ownership.
Note: If you want to know how the application process works, go to our blog “How To Obtain A Succession Certificate?”
Wrap Up!
In Pakistan, a succession certificate holds significant importance in simplifying the process of transferring assets to deserving legal heirs. It establishes the rightful inheritors, resolves disputes, and ensures a fair distribution of assets. By acquiring this legal document, the concerned parties gain the authority to access and manage the deceased’s financial resources, facilitating the administration of the estate in compliance with the law. Understanding the purpose and significance of succession certification is crucial for anyone dealing with inheritance matters in Pakistan.