Here’s a number that should stop you mid-scroll: over ₹50,000 crore worth of assets in India remain unclaimed because families didn’t know about them or lacked proper succession documentation. And the average probate process in India takes 12–18 months — longer if there’s no will, if heirs are abroad, or if anyone contests the claim.
If you’re an NRI with assets in India — a flat in Mumbai, mutual fund holdings, fixed deposits, an ancestral property, even a bank account — and you haven’t done estate planning, your family could spend years and lakhs trying to access what’s rightfully theirs.
This guide covers everything you need to get right: wills, succession laws, nominees, executors, Power of Attorney, and what happens to your Indian assets when you’re no longer around to manage them.
Why NRIs Need a Separate Estate Plan for India
This is the first and most important point: a will drafted in your country of residence does not automatically work for your Indian assets.
Under the Indian Succession Act, 1925, succession to immovable property in India is governed by Indian law — regardless of where you live, what citizenship you hold, or what your foreign will says. A US-drafted will, for example, is not automatically valid for Indian immovable property. Probate is mandatory in Mumbai, Chennai, and Kolkata courts and is increasingly required by banks and registration authorities in other cities too.
A single will trying to cover assets in both countries often creates more problems than it solves. It can trigger conflicting probate proceedings in two jurisdictions, create ambiguity about which assets fall under which legal system, and in some cases, a new foreign will can inadvertently revoke an earlier Indian will (or vice versa) if the revocation clause is not carefully drafted.
The practical solution: two separate wills — one for Indian assets governed by Indian succession law, and one for assets in your country of residence governed by that country’s law. Each will must explicitly state that it applies only to assets in that jurisdiction and does not revoke the other.
Indian Succession Laws: What Applies to You
If you die without a will (intestate), Indian law doesn’t follow a one-size-fits-all approach. Your religion determines which succession law applies to your Indian assets:
Hindus, Sikhs, Jains, and Buddhists are governed by the Hindu Succession Act, 1956. Class I heirs — spouse, children, and mother — inherit equally. If there are no Class I heirs, Class II heirs (father, siblings) inherit. The 2005 amendment gave daughters equal coparcenary rights in ancestral property.
Muslims follow Muslim Personal Law (Shariat). A Muslim can bequeath only one-third of their estate by will; the remaining two-thirds is distributed among legal heirs according to fixed shares under Shariat law. This is a critical distinction — testamentary freedom is limited.
Christians and Parsis are governed by the Indian Succession Act, 1925. The spouse and children inherit in defined proportions, with the spouse entitled to one-third and children sharing the remaining two-thirds equally.
The key takeaway: if you don’t write a will, Indian law distributes your Indian assets based on your religion — which may not align with what you actually want. A will gives you testamentary freedom (for Hindus, Christians, and Parsis — with the one-third limitation for Muslims) to direct your assets to whoever you choose.
The Six Pillars of NRI Estate Planning
1. An India-Specific Will
Your Indian will should cover all Indian assets: immovable property (flats, land, houses), bank accounts (NRE, NRO, FCNR), mutual fund holdings, shares and demat accounts, insurance policies, gold and jewellery held in India, and any business interests.
Key requirements for a valid Indian will: it must be signed by you (the testator) in the presence of two witnesses who also sign. It does not need to be on stamp paper or registered — though registration with the Sub-Registrar’s office adds legal weight and makes it harder to contest. NRIs can execute a will abroad; it will be valid in India if it complies with Indian law requirements.
Critical drafting point: include a clause that explicitly states this will covers only Indian assets and does not revoke any will made in another jurisdiction. Without this, your foreign will could accidentally revoke your Indian will.
2. A Resident Indian Executor
The executor is the person responsible for carrying out your will’s instructions — filing for probate, dealing with banks and registrars, paying debts, and distributing assets. For NRIs, this is where plans often fall apart.
An NRI executor faces practical problems: probate courts may require physical presence, banks typically require in-person verification, and property registration offices need someone on the ground. Appointing a trusted resident Indian — a sibling, adult child living in India, or a professional trust company — as executor is essential.
You can appoint joint executors (one NRI and one resident Indian) for oversight, but at least one must be able to act in India when needed.
3. Updated Nominations on Every Account
This is critical and widely misunderstood: nominations and wills serve different legal purposes, and nominations often override your will in practice.
When you nominate someone on a bank account, mutual fund folio, or insurance policy, the nominee receives the funds directly — without waiting for probate or succession proceedings. The nominee acts as a trustee and is legally expected to distribute to the rightful heirs, but in practice, the nominee controls the funds immediately.
If your nominee is outdated (you named your father 10 years ago, but you now have a spouse and children), the wrong person receives your assets first, potentially creating disputes and delays.
Action: review and update nominees on every Indian account — bank accounts, fixed deposits, mutual funds, demat accounts, insurance policies, PPF. SEBI mandated nominee registration for mutual fund holdings from March 2025, making this non-negotiable for investment accounts.
4. Power of Attorney (PoA) for Indian Affairs
A Power of Attorney allows a trusted person in India to manage your assets on your behalf while you’re alive — signing property documents, operating bank accounts, handling tax filings, or managing rental property.
For NRIs, this is especially important because you can’t always be in India when decisions need to be made. A PoA must be executed on appropriate stamp paper, notarised, and apostilled (or attested by the Indian embassy/consulate in your country of residence) to be valid in India.
Important limitation: a PoA ceases to be valid upon the death of the person who granted it. This is why a PoA is not a substitute for a will — it handles management during your lifetime, while a will handles succession after death.
5. A Complete Asset Inventory
This sounds basic, but it’s one of the biggest reasons assets go unclaimed. Your family needs to know what exists: every bank account, every FD, every mutual fund folio, every property, every insurance policy, every locker.
Create a single document listing all Indian assets with account numbers, folio numbers, property details, insurer names, and policy numbers. Store it securely and ensure your executor, spouse, or a trusted family member knows where to find it. Update it annually.
Without this, your family is left searching — and assets they don’t know about simply stay unclaimed.
6. Understanding What Your Heirs Will Face
No inheritance tax in India. India does not levy any tax on inheritance — whether the heir is a resident or an NRI. The receipt of assets through a will or inheritance is explicitly exempt under Section 56(2)(x) of the Income Tax Act.
However, income from inherited assets is taxable. Rental income from inherited property, dividends from inherited shares, and interest from inherited deposits are all taxable in the hands of the heir. And when inherited assets are sold, capital gains tax applies — calculated using the original owner’s purchase cost (not the value at the time of inheritance), with indexation available for long-term gains.
Repatriation of inherited assets: If your heirs are NRIs, they can repatriate sale proceeds of inherited Indian assets up to USD 1 million per financial year through their NRO account, after payment of applicable taxes and submission of documentation (death certificate, probate/succession certificate, CA certificate).
What Happens Without Estate Planning: A Real Scenario
An NRI in the UK passes away without an Indian will. He has a flat in Pune (₹80 lakh), mutual funds (₹25 lakh), and NRO FDs (₹15 lakh). His wife is in the UK. His mother is in Pune.
Without a will, the wife needs a succession certificate from an Indian court to access the bank accounts and mutual funds. This requires filing a petition, publishing a public notice, and waiting for objections — a process that typically takes 6–18 months and costs ₹10–20 lakh in legal fees (including court fees that can be up to 3% of asset value in some states). For the flat, she needs to establish herself as a legal heir through a separate process, potentially requiring transfer of property records.
During this entire period, the NRO FDs may mature and not get renewed, the mutual fund portfolio sits unmanaged, and the flat is vulnerable to encroachment — especially in cities where vacant properties are targeted.
All of this could have been avoided with a simple Indian will, an updated nominee list, and a resident Indian executor. Total cost of setting it up: a fraction of what the family will spend fighting to access what’s already theirs.
Start Here: Your Estate Planning Checklist
If you haven’t started, here’s the sequence that matters most:
- First: Make an asset inventory. Write down every Indian asset, account, and policy you hold.
- Second: Draft a separate Indian will covering all Indian assets. Appoint a resident Indian executor. Include the non-revocation clause for your foreign will.
- Third: Update nominees on every account — bank, mutual fund, demat, insurance, PPF.
- Fourth: Execute a Power of Attorney for a trusted person in India to manage your affairs during your lifetime.
- Fifth: Share the asset inventory and will location with your executor and spouse. A will nobody can find is the same as no will at all.
If this feels like a lot, it doesn’t have to be. Our team helps NRIs across the US, UK, UAE, Canada, Australia, and Singapore structure their estate planning alongside their investment portfolio — because building wealth in India only matters if your family can access it when they need to.
Frequently Asked Questions
Does India have inheritance tax?
No. India abolished estate duty in 1985 and does not levy any inheritance tax. Assets received through a will or inheritance are exempt from income tax under Section 56(2)(x) of the Income Tax Act. However, any income generated from inherited assets (rental income, dividends, interest) is taxable, and capital gains tax applies when inherited assets are sold.
Can an NRI make a will for Indian assets from abroad?
Yes. An NRI can execute a will abroad that covers Indian assets. The will should be signed by the testator in the presence of two witnesses. It does not need to be on stamp paper, but registration with the Indian Sub-Registrar adds legal weight. The will should explicitly state it covers only Indian assets and does not revoke any will made in another country.
Why do NRIs need a separate will for Indian assets?
Because succession to immovable property in India is governed by Indian law, regardless of your country of residence. A foreign will may not be recognised or may require lengthy re-sealing by Indian courts. Having a separate Indian will simplifies probate, avoids conflict with foreign estate laws, and ensures your Indian executor can act efficiently under Indian legal procedures.
What happens to an NRI's Indian assets if they die without a will?
Without a will, assets are distributed according to intestate succession laws based on the deceased’s religion — Hindu Succession Act for Hindus/Sikhs/Jains/Buddhists, Muslim Personal Law for Muslims, or the Indian Succession Act for Christians and Parsis. Heirs must obtain a succession certificate from an Indian court, a process that typically takes 6–18 months and involves significant legal costs.
Can NRI heirs repatriate inherited assets from India?
Yes. NRI heirs can repatriate sale proceeds of inherited Indian assets up to USD 1 million per financial year through their NRO account, after payment of applicable taxes. Documentation required includes the death certificate, probate or succession certificate, and a certificate from a Chartered Accountant confirming tax compliance. The inheritance itself does not require RBI approval — FEMA permits unrestricted transmission by inheritance.
Disclaimer: This blog is for informational purposes only and does not constitute legal, financial, or tax advice. Estate planning involves complex legal considerations that vary by religion, jurisdiction, and individual circumstances. Succession laws, tax rules, and FEMA regulations are subject to change. Please consult a qualified legal professional for will drafting and a financial advisor for estate planning decisions. We specialise in Indian financial planning; for legal and tax implications in your country of residence, please consult local professionals.
