Summary of this article
Most Indians lack wills and estate plans
Inheritance disputes frequently involve residential properties
Legal documents help establish rightful ownership claims
The Indian housing market is often one of the most talked-about markets, in terms of affordability, property prices, trends and urban expansion. Yet, beneath all of these, there are visible challenges that gather much less attention. Family disputes in Indian households are one of the most common reasons why inheritance remains an issue in the Indian markets. Most Indians consider real estate to be a major form of accumulated wealth. Unclear inheritance creates rifts among family members.
For many Indian families, property is the most valuable asset they possess. Property is not just a financial investment but also a symbol of security, legacy, and social status.
A recent research by 1 Finance Magazine highlights this problem. The research is based on a survey where 1,218 respondents across 20+ Indian cities were asked about their stance on having wills and dividing their assets for their future generations. The study has found that 84.8 per cent of respondents do not have a will, while 62.5 per cent have no plans to create a will. Nearly half of those who were surveyed never discussed estate planning or inheritance with their families. This reluctance in planning asset management leaves plenty of room for confusion when the assets are left behind after the passing of the owner.
The consequences are visible of this. As per the same study, 30.5 per cent of the respondents have reported that they themselves have experienced some form of inheritance dispute in their families. These numbers reveal that the majority of disagreements revolve around residential properties, ancestral homes and land holdings of jointly owned assets.
Disputes like this have disputes beyond just property ownership; family ties are severed, which affects generations. Properties that are entangled in legal conflicts remain vacant, underutilised, or unsold for years to come. They need a clearance from the court or a settlement among family members, for the property to be sold or rented out.
What To Do If One Inherits A Property With No Clear Share-Title?
“In order to effect the transfer process in cases of inheritance, one first needs to obtain a legal heir certificate/surviving member certificate from the district magistrate / concerned revenue authority to show that one is a legal heir to the deceased. Thereafter, the next step entails obtaining a succession certificate from the district court based on the legal heir certificate,” adds Mayank Arora, Partner, Chambers Of Bharat Chugh.
Next is the proof of ownership in the name of the deceased. This can include a registered sale deed, allotment letter or registration papers.
If the deceased had left behind a will, the process becomes simpler and more straightforward. While registration of a will is not mandatory under Indian law, a registered will holds value as proof and reduces the scope for disputes in the future.
Identity and address proof of all legal heirs is also a requirement. KYC documents like Aadhaar card, PAN card, passport, or voter ID are also required of both parties.
Legal Heir Certificate and Succession Certificate
Two documents mentioned in inheritance matters are the legal heir certificate and the succession certificate; while they sound similar, they have very different purposes.
A legal heir certificate is a document that is issued by the local revenue authority. It identifies the lawful heirs of the deceased. It is used for the property mutation. The process for this is simple; it requires submitting the death certificate, identity proof, and family details.
Inherited property in India is not just a transfer on the basis of kinship; legal owners are recognised only after proper documentation, certification and records are submitted.
