Understanding the Letter of Administration : Purpose and Key Roles

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.

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.

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.