Understanding the Letter of Administration : Purpose and Key Roles

Updated on September 07, 2024 05:54:25 PM

Letter of Administration is often confused with terms like Probate and Succession Certificate. Probate in simpler terms is a copy of the will that is certified by the seal of court. Only the executor nominated in the Will can apply for probate. A Succession Certificate is issued for the purpose of movable assets like debts and securities of a deceased person whereas Letter of Administration grants the right to administer the estate of a deceased person.

Still find it difficult to understand then continue reading till the end to understand it in detail.

Letter Of Administration

Letter of administration, will registration, law firm in delhi

What is a Letter of Administration?

LOA (Letter of Administration) is an official court document issued for the purpose of giving authority to a person (it is granted) to administer all the estate of a deceased person. It is issued in case when a person dies intestate (without leaving a Will). Letter of administration gives legal right to the person to administer the estate of a deceased person. In cases when there is not any executor of Will then the beneficiary can apply for a letter of administration in the court.

For instance, there are three types of people attached with inheritance of property: one is the estater (Owner of Will), second is executor (who helps in executing the will), and the third one is a beneficiary.

When to Apply?

Under the following circumstances, a request for a Letter of Administration (LOA) can be made:

  1. When there is no Will;
  2. When Executor declines or fails to accept executorship within the prescribed time period;
  3. When no executive of the will is appointed in the Will;
  4. When executor refuse to act or is legally incapable to do so;
  5. When the executor dies prior to administration of the estate.

Where to Apply?

The District Judge, within whose jurisdiction any property, movable or immovable, is situated or the deceased resided, immediately, before his death, shall be having the jurisdiction to try and entertain the Petition.

What are the Laws that govern this?

Indian Succession Act 1925 governs all the laws related to letter of administration and probate in India. Under the Indian Succession Act, 1925:

  1. Section 234 deals with the grant of administration in cases where no executor, nor residuary legatee, nor representative of such legatee exist or declines, is incapable of acting or cannot be found,then the beneficiary would have been entitled to file an application for the Letter of Administration.
  2. Section 223 deals with the person to whom probate or letter of administration cannot be granted. It cannot be granted to a person who is a minor or is of unsound mind. It cannot be even granted to any associations of individuals unless it is a company which satisfies the conditions prescribed in the rules .
  3. Section 290 deals with the grant of letters of administration when it appears to the district judge or district delegate.
  4. Section 215 deals with grant of probate or letters of administration in respect of an estate shall be deemed to supersede any certificate previously granted under Part X or under the Succession Certificate Act, 1889 (7 of 1889)1, or Bombay Regulation No.VIII of 1827, in respect of any debts or securities included in the estate.

Who Can Apply For A Letter Of Administration

Under the Indian Succession Act, 1925 which deals with laws concerning Letters of Administration in India:

  • Where the deceased was a Hindu, Muslim, Buddhist, Sikh, Jain or an exempted person, the administration of the estate may be granted to any person who would be entitled to the whole or such part of the estate of the deceased as the case may be under the respective laws.
  • If the deceased was not a person belonging to the above-mentioned classes, those connected to them by marriage or blood are entitled to obtain Letters of Administration in the order and according to the rules specified in the Act.

Required Documents for Letter of Administration

While filing the petition for the Letter of Administration, there is certain documents needs to attach along with the petition. All those documents that are required at the time of Letter of Administration are stated below:

  • Death Certificate of the testator/deceased.
  • Aadhar Card of the testator/deceased.
  • Ration Card of testator/deceased.
  • Original Will in case of letter of administration without Will.
  • List of Legal heirs.
  • Documentary proof of the properties testator/deceased. If there is Will then documentary proof of the properties mentioned in the Will.

Court Fees for Applying for a Letter of Administration

The court fees for applying for a Letter of Administration depend on the value of the deceased's property:

  • On the amount exceeding ₹1 lakh and up to ₹ 10 lakh, the court fees are 2.5% of the amount .
  • If the amount claimed is more than ₹10 lakh but less than ₹50 lakh the court fees are 3.25 % of the amount or value.
  • In cases where the amount or value is in excess of ₹50 lakh, the court fees payable are at the rate of 4 % of such amount or value.

Procedure for Letter of Administration

After understanding eligibility, documentation, and fee structure for the letter of administration, you are all set to completely understand its procedure. However, you already would have noticed its importance and how many complications it consists of. That’s why to ease your process, we at Litem provide you with experienced and qualified advocates to handle your case and provide you with a Letter of Administration with as much ease as possible.

  • Petition for Letter of Administration: The foremost step while filing a petition is to know about the documentation it requires and have them with you. We already have discussed the documents you will need while filing the petition. You just need to attach them along with the petition.Additionally, the amount of assets that are likely to come in the petitioner's hand is to be mentioned in the petition as well.
  • Court Fees for LOA: Evaluation of property is done in the next step in the procedure for the grant of a letter of administration. The court fees depend on the amount/value of assets the court is dealing with. Details related to the fees for letter of administration are mentioned above in detail. The estimation of the estate is based on the current market value of the assets.
  • Notification to all Legal Heirs: After receiving the application for a letter of administration, a notification is sent to all the heirs of the property, for objections with the grant of letter of administration. Alternatively the court can issue the notice in the newspaper as well for any objections related to grant of LOA, if any.
  • Grant of Letter of Administration: If no one raises any objection then the court will approve your petition and the court passes the order in favor of the petitioner.

Difference between Succession Certificate and Letter of Administration

While both documents deal with the inheritance of a deceased person's assets, there are significant differences between a Letter of Administration and a Succession Certificate:

Succession Certificate Letter of Administration
Issued by a court to the legal heirs of a deceased person, confirming their entitlement to inherit assets like debts, securities, and other movable properties. Granted by a court when a person dies intestate (without leaving a valid will), authorizing an administrator to manage and distribute the deceased's estate to rightful heirs.
Generally issued when there's no will or when the will doesn't cover all properties. Issued specifically when there's no will or when a will exists but doesn't appoint an executor, or when the named executor refuses to act or is incapable.
Primarily concerns movable assets like bank accounts and securities. Covers both movable and immovable assets, encompassing the entire estate of the deceased.

How to get Letter of Administration in India with Litem?

Rights to the estate of the deceased are granted through probate, letter of administration, and succession certificate documents. It is through probate and letters of administration that administrative rights pertaining to a deceased person's estate are validatedAs compared to the other two documents, the role of the Succession Certificate is very limited.

Succession Certificates can be used to acquire debts and securities, but they cannot be used to acquire rights to movable property or assets of significant value. But filing a petition and acquiring all the documentation related to the letter of administration should be done accurately. Even a small mistake can lead to decline or rejection of a petition by the court.

With experienced advocates and lawyers like Litem, this process can be simplified. All you need to do is just follow these 3 basic and simple steps to have the letter of administration with you.

  • Fill our simple form and receive a call back from our team of experienced advocates (Or You can directly reach us at +91 7409697047 ).
  • Provide us with all necessary details and documents related to your case.
  • Our team of legal experts will handle the case for you.

How can “Litem Legalis” help you?

Litem Legalis offers comprehensive assistance in obtaining a Letter of Administration (LOA), a critical legal document that authorizes an individual to manage the estate of a deceased person who died intestate. Our experienced legal professionals guide clients through the complexities of the application process, ensuring compliance with the Indian Succession Act, 1925. We facilitate the preparation of necessary documentation and provide expert advice tailored to individual circumstances. By choosing Litem Legalis, clients can navigate the challenges of estate administration smoothly and efficiently, ensuring their rights and interests are safeguarded.

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Conclusion

The Letter of Administration (LOA) is a critical document that authorizes an individual to oversee the estate or property of a deceased person who died intestate. With the Indian Succession Act, 1925 governing distribution of assets/lawful heirs and their share in case any one passes away intestate (without a LOA), it is an indispensable document that needs to be issued. There is an application process with special documents and procedural rules that must be followed. As you can appreciate, getting it right is incredibly complex so we always recommend that advice be sought by a legal professional on how to address any challenge thoroughly.

Contact Litem Legalis today for guidance and support in helping you obtain your Letter of Administration smoothly.

Frequently Asked Questions (FAQs)

What is a Letter of Administration?

LOA (Letter of Administration) is an official court document issued for the purpose of giving authority to the person (to whom it is granted) to administer all the estate of the deceased person. It is issued in case when a person dies intestate (without leaving a Will), in that case letter of administration gives legal right to the person to administer the estate of the deceased person.

What is the procedure for getting a Letter of Administration?

A letter of administration is a document that explicitly grants a person the authority to administer the property of a person who has died intestate. The procedure to get this document is the same as the procedure for getting the succession certificate.

What is the Limitation period of Applying for Letters of Administration?

The time within which one can apply for Letters of Administration under the Limitation Act, 1963 is generally recognized to be12 years from the date at when the deceased passed away. Upon expiration of this period, the court is permitted to admit the application but only in case there are convincing grounds for doing so.

Why is it relevant to file within the period of limitation?

This is important to ensure that the process remains unproblematic and uncontested with time. Failing to file within the limitation period can result in legal disputes, time delays and increased court scrutiny that will make it more difficult for you to properly administer the estate.

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