Definition
Intestate Succession
Intestate succession is the distribution of a deceased person's assets according to statutory law when they die without leaving a valid will.
If there is no will, the deceased's property is divided among heirs as prescribed by the personal law applicable to them — for example, the Hindu Succession Act for Hindus or relevant laws for other communities — which sets a fixed order of heirs and shares. The deceased's own wishes carry no weight; the statute decides.
Intestacy often produces outcomes the person might not have wanted, can disadvantage certain dependants, and frequently leads to delays and family disputes. Heirs may need a succession certificate or legal heir certificate to claim assets. The simplest way to avoid intestate succession is to make a valid will.
Related terms
- Will (Testament)A will is a legal document in which a person states how their assets should be distributed after death and who should carry out those wishes.
- Legal Heir vs NomineeA nominee is the person you authorise to receive an asset after your death, but a legal heir is the person actually entitled to inherit it — and the two are not always the same.
- Succession CertificateA succession certificate is a document issued by a civil court that authorises the legal heirs of a person who died without a will to collect debts and securities owed to the deceased.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.