Estate Planning & Will Creation for NRIs with Indian Assets

For NRIs and HNIs, building wealth across countries is an achievement—but protecting it for the next generation is equally important. If you own property, bank accounts, or investments in India, estate planning and a proper will are not optional—they’re essential.

Let’s simplify how NRIs can approach this in a clear, strategic, and legally sound way.

Why Estate Planning Matters for NRIs

If you pass away without a will in India, your assets may go through a lengthy legal process under Indian succession laws.
This can delay access for your family and may even cause disputes. A will ensures your wishes are respected, and your loved ones receive your legacy without hassle.

Key Challenges NRIs Face Without a Will

Family members abroad may struggle to claim Indian assets
Local succession laws (especially for Hindus, Muslims, Christians) apply differently
Courts may appoint administrators, leading to delays and loss of control
Jointly held assets may not pass automatically to intended heirs

What Counts as Indian Assets for NRIs?

As an NRI, your Indian estate may include:

Residential or commercial property
NRE/NRO/FCNR bank accounts
Mutual funds and stocks in Demat form
Pension funds or LIC policies
Jewellery and other movable assets stored in India

Step-by-Step Guide to Creating a Will in India as an NRI

✅ Step 1: Make a List of All Indian Assets

Start with a clear inventory—property, bank accounts, investments, and other valuables.

Example: Amit, an NRI in the UK, owns a flat in Delhi, a PPF account, and mutual funds in India. He listed them all before drafting his will.

✅ Step 2: Decide Who Gets What

Clearly name your beneficiaries and what they will inherit. Use full legal names and relationships.

Tip: Avoid vague phrases like “divide equally among children” unless specified clearly.

✅ Step 3: Draft the Will in Simple Language

Write your will in any Indian language or English. It should include:

Declaration that you are of sound mind
List of assets
Beneficiaries and distribution plan
Executor (person who will carry out your wishes)

✅ Step 4: Sign and Witness

You must sign the will in the presence of two independent witnesses, who must also sign.

Witnesses should not be beneficiaries of the will.

✅ Step 5: Register the Will (Optional but Recommended)

Registration at the local Sub-Registrar’s Office adds legal weight and prevents future disputes.

Even an unregistered will is valid in India, but registration can be a strong proof in contested cases.

Should You Have a Separate Will for Indian Assets?

Yes, especially if you also have assets in your country of residence.

Example: Priya, an NRI in Canada, made a Canadian will for her overseas accounts and a separate Indian will for her Hyderabad flat and bank deposits. This made the legal process easier in both countries.

Tax Implications NRIs Must Consider

✅ No Inheritance Tax in India

India does not levy inheritance tax, but you may need to declare inherited Indian assets in your resident country (e.g., US, UK, Canada) for tax purposes.

✅ Gift and Capital Gains Rules Still Apply

After inheriting assets, selling them may attract capital gains tax in India. NRIs must plan exit strategies wisely.

Common Mistakes NRIs Make in Estate Planning

Not updating the will after buying/selling assets
Naming minors as direct beneficiaries without appointing a guardian
Not informing family members where the will is stored
Assuming one global will works in all jurisdictions

Pro Tips for Smooth Estate Planning

Keep a scanned copy of your will with a trusted family member or advisor
Review your will every 3-5 years or after major life changes
Work with a lawyer familiar with NRI succession laws in India
Add a “letter of wishes” alongside your will to clarify intention

Frequently Asked Questions (FAQs)

1. Is it necessary for NRIs to make a separate will for their assets in India?
Yes, it is highly recommended. A separate will for Indian assets ensures faster probate and easier execution under Indian legal jurisdiction.

2. Can an NRI make a will from abroad for assets located in India?
Yes, an NRI can make a will overseas. However, it should be duly signed, witnessed, and ideally notarized or attested by the Indian Consulate to be legally valid in India.

3. Do Indian inheritance laws apply to NRIs even if they have foreign citizenship?
Yes, Indian succession laws apply to Indian assets owned by NRIs, regardless of their citizenship or residency status.

4. Who can be an executor of an NRI’s will for Indian assets?
The executor can be a trusted person—resident or non-resident—but should be familiar with Indian legal processes. Appointing someone in India may help with faster execution.

Final Thoughts

Estate planning isn’t just about wealth—it’s about peace of mind. As an NRI, creating a clear, India-specific will ensures that your hard-earned legacy is passed on smoothly, without legal hurdles or family stress.

Start today. A few simple steps can save your loved ones years of complications tomorrow.