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What Is Indian Succession Act And How Does It Apply In Estate Planning?

The Indian Succession Act of 1925 governs inheritance, will, and succession rules. Learn more

May 20, 2024
May 20, 2024
What is Indian Succession Act 1925?

What is Indian Succession Act 1925?

The Indian Succession Act, 1925, deals with intestate and testamentary succession. The former applies when there is no will, and the assets must be divided based on religious laws, while the latter applies if the deceased person has left a written will. The Act provides guidelines about how these laws can be used to distribute and manage assets.

Also Read: Why Is Nominee Important In Any Investment?

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What Are Testamentary Laws Under the Indian Succession Act?

The testamentary law applies when the deceased person has left a will recording his wishes regarding the distribution of his assets after death. Sections 57 to 191 under the Indian Succession Act 1925 deal with wills. It states that anyone of sound mind, whether married, deaf, dumb or blind, can dispose of their property via a will. It also stresses that when creating the will the person must be of sound mind, not intoxicated or have suffered from major illnesses.

Also Read: Can A Power Of Attorney Be Revoked? What Power Does A POA Wield?

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The testamentary laws apply to people of all faiths in the same way as the Indian Succession Act. Here’s how they apply to Hindus, Muslims, Sikhs, Christians, and Jains.

Hindus: The Indian Succession Act states that testamentary succession rules will apply to Hindus. In the case of intestate succession, the Hindu Succession Act of 1956 governing Hindu Undivided Family, or HUF, will apply. The Indian Succession Act does not apply to Hindus.

Muslims: Testamentary or intestate successions do not apply to Muslims. The Quran and other texts serve as the foundation for succession. The authoritative work on wills for Muslims is Hedaya or Fatawa Alamgiri. So, the deceased’s assets are settled by Islamic law. For instance, the deceased’s assets will be used to settle the following debts as per the Islamic law:

  1. Funeral and death-bed fees.
    2. Expenses related to succession certificates, letters of administration, or probates.
    3. Payment of salaries to domestic help, labourers, artisans, etc., due three months prior to death.
    4. Settlement of the deceased’s outstanding debts.
    5. A third of what’s left after all the payments made may be left as legacies.
    6. In the case of intestacy, the remaining two thirds will be given to the heirs.

Sikhs: For Sikhs, regulations related to testamentary succession are governed by the Indian Succession Act. In the event of intestate succession, the Hindu Succession Act will apply.

Christians: For Christians, both testamentary and intestate successions are covered under the Indian Succession Act of 1925.

Jains: Jains are covered under the Indian Succession Act, the same as Hindus. The intestate succession rules will apply to Jains under the Hindu Succession Act of 1956. On the other hand, testamentary succession will apply under the Indian Succession Act of 1925.

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