The Act defines the order in which heirs will inherit the property. The property of a Hindu dying intestate is divided into the following classes of heirs:
Class I Heirs: This includes the direct descendants such as the son, daughter, widow, mother, and more who are the first to inherit the property.
Class II Heirs: This includes relatives like the father, brothers, sisters, nieces, nephews, and other extended family members but only if no Class I heirs are present.
Agnates and Cognates: If no Class I or Class II heirs exist, the property is distributed among agnates (relatives through the male line) or cognates (relatives through the female line).
The Hindu Succession (Amendment) Act, of 2005 granted daughters equal rights as sons in the ancestral property. Section 6 of the Act (as amended) provides that daughters shall have the same rights and liabilities in the ancestral property as sons, meaning that a daughter, just like a son, can inherit ancestral property. This marked a major shift in Hindu succession laws, promoting gender equality in the context of inheritance.
In the absence of a will, the heirs need a succession certificate from a civil court to claim the deceased’s assets (bank accounts, investments, etc.). This document identifies the legal heirs. The assets belong to the heirs. However, in the absence of a will, it takes time to transfer property rights or access funds. At the same time, in case of family disputes (for example, regarding business shares), the contenders of the property may have to go to the courts.
It is advisable to write a will specifying the shares of the property and its proper distribution among the heirs. This legal document gives one the authority to decide who they want to inherit their property and assets, including their family, friends or any charitable organisation.
Writing a will is easier nowadays. One can prepare an online will. Although, it is advisable to have a will prepared by a lawyer to avoid any disputes within the family over assets in the future. Also, it is essential to keep the nominee details up to date in bank accounts, investments and insurance policies.