When someone dies without leaving a will in India, the distribution of assets is determined by law rather than personal wishes. According to Varghese Thomas, Partner at JSA Advocates & Solicitors, 'intestate' means having passed away without a will, which automatically means that it is the law which dictates how the asset is to be transferred. The applicable law depends on the community to which the deceased belonged. Hindus, Buddhists and Jains are governed by the Hindu Succession Act, Christians and Parsis fall under the Indian Succession Act, while Muslims follow their personal laws. For a Hindu male, assets are distributed equally among the widow, mother and children, with each entitled to 25 rupees from a hypothetical ₹100 estate.
The inheritance rules vary significantly across different religious communities. For Christians governed by the Indian Succession Act, the spouse generally receives one-third of the estate, while the remaining portion is divided equally among the children. If there are no children, the spouse's share increases to 50% and the balance is then divided amongst the kindred, starting with the father of the deceased, then the mother and then the siblings. Thomas notes that the system may eventually evolve if more states adopt a Uniform Civil Code similar to Uttarakhand's framework, which would end personal laws as far as succession is concerned. This could simplify the current complex system of multiple succession laws.
Proving inheritance rights requires obtaining a legal heirship certificate, which identifies the lawful heirs of the deceased. As reported by JSA Advocates & Solicitors, the certificate can typically be obtained through state government portals by submitting the death certificate and relationship documents. Thomas explains that most banks or depositories would ask for an heirship certificate so they know who it has to be transferred to. This document becomes the key requirement for transferring property, bank accounts, fixed deposits and investments, making it essential for asset distribution processes.
Many investors assume that nominees named in bank accounts, mutual funds or demat accounts automatically become asset owners after death. However, according to JSA Advocates & Solicitors, 'the legal position is that the nominee is not the one who is entitled to it simply because he or she is the nominee'. Instead, the nominee acts as a temporary holder until the legal heirs establish their rights. Thomas clarifies that 'they're guardians till such time as the actual successor steps in and then you do the transfer'. This misconception often leads to confusion during asset transfer processes.
When multiple heirs inherit a single property and want to sell and divide proceeds, an heir may need to approach the court for a Letter of Administration. As explained by JSA Advocates & Solicitors, 'it's a process through the court which finally issues a Letter of Administration to one of the heirs'. This process authorises an heir to administer the estate, sell the asset and distribute proceeds among beneficiaries. The process can take between eight, twelve, fifteen months depending on which court you are in, making it a time-consuming procedure for asset division among heirs.
