Tag: Askwakeel

Procedure and Requirements of Succession Certificate

Basically, succession certificate is registered document which is required when person dies leaving behind money in bank account, bonds or shares in company.

Once legal heirs get this certificate they can withdraw money from deceased account in Pakistan. But without having succession certificate for bank account from competent court, the banks do not allow legal hairs to get money.

It is a mandatory requirement of financial institution, that legal heirs must have succession certificate in Pakistan.

In order to get this certificate a proper case has to file in civil court. This succession certificate establishes the right of heirs and determines their share in the property. It also gives them the authority to withdraw the money or securities and transferred them in their own name.

The relevant law applicable in this process is Succession Act 1925. Sections 370 to 390 of Succession Act 1925 deal with this process.

Succession Certificate Requirements:

These documents required for succession certificate in Pakistan and are attached at the time of initiating this civil suit.

1. Death certificate of the deceased
2. CNIC (Identity Card) of the deceased
3. CNIC (Identity Card) of the heirs
4. Notices and public advertisement
5. Statement of the all heirs or any one of them
6. One independent witness

Procedure of Succession Certificate

The Procedure for getting certificate is quite simple.

Usually a readymade form is available in courts, which is used to get money from deceased account. The heirs have to fill them while mentioning the description of all movable properties which they want to withdraw.

If that form is not available then a plaint has to be filed explaining all the facts which led the heir to file this suit.

(1) On first hearing the court will order for the notices in the public newspaper as an advertisement.

(2) On second hearing the copy of advertisement is submitted in the court and further order of recording of evidence are passed.

(3) On third hearing the statement of one heir and his independent witness (who is well acquainted with the facts of the case) are recorded.

(4) Fourth hearing is fixed to hear the arguments and after that the order for granting the succession certificate are passed, only if the court is satisfied.

This whole process takes about 1 to 2 month.

When the certificate is received the heirs can take the original copy to the concerned institution and can withdraw the asses or transfer them in their own name.

Gift Deed and its Registration Process

A Gift Deed is a legal document that records the transfer of ownership of the property from a donor to a donee. It also specifies that the transfer was made voluntarily without any exchange of money between the two parties. Unlike executing a sales deed, there is no financial transaction involved in the process of gifting a property.

Although it is also not mandatory for a donor to declare a gift in writing, as it can be done orally as well, gift deeds for property transfer are solely executed for the purpose of creating a valid record. 

However, it is important to register a gift deed for it to be valid – especially when it comes to transferring the ownership rights of immovable property.

There is no set gift deed format in Pakistan. 

Generally, when someone bequeaths their property to a loved one, the deed mentions that the gift was made voluntarily and without any coercion. It also clarifies the donor is not bankrupt and won’t ever ask for the gift to be returned. 

Not to mention, you cannot register a gift deed in Pakistan if it does not have the signatures of both the donor and the donee.

In case of a gift deed for cash and prize bonds, the document usually mentions the total amount that was transferred as well as the mode of transfer (via cash or check etc.). If one is giving away their jewellery, they may mention the type, weight and current valuation for an estimate.

On the other hand,one may have to submit a few documents to prove their ownership rights while executing a gift deed for real estate.

Whether you are gifting a parcel of land or a house to your relative, friend or acquaintance, here are some of the documents required for gift deeds.

  • Attested copies of donor’s CNIC 
  • Attested copies of donee’s CNIC 
  • Original allotment letter
  • Property tax clearance certificate
  • No-objection certificate from the local building control authority
  • Bank draft of PKR 3,000 or 5,000 (the amount varies with each case)
  • Statement recorded before the concerned Deputy Director 
  • The official seal of the concerned Deputy Director 

HOW TO REGISTER A GIFT DEED IN PAKISTAN 

For gift deed registration in Pakistan, the aforementioned details must be put down on a stamp paper along with the names of the donor and the donee. Even though there is no monetary exchange involved, the deed must be attested by at least two witnesses before being registered in the concerned sub-registrar. 

For immovable properties, the title cannot be legally transferred to the gift recipient’s name unless both parties have registered the gift deed and paid the property tax. 

TAX ON GIFTED PROPERTY IN PAKISTAN

This is one of the most important aspects of gift deed registration in Pakistan.

Property transferred as a gift is liable to taxation as it falls under Capital Value Tax. The amount to be paid is determined according to the overall value of the gift. However, a property gifted by parents, grandparents, siblings, spouse or children is exempt from taxation.