Succession Planning for NRIs: Wills, Nomination & Legal Heirs

Non-Resident Indians often hold assets across borders, making succession planning vital to avoid delays, disputes and unintended outcomes. A clear plan, through wills, consistent nominations and understanding heirship, ensures smooth transfer while respecting personal wishes.

Without planning, families face lengthy court processes, especially for Indian assets. This guide covers essentials for NRIs. For tailored cross-border advice, consult experts at ezyLegal.

Why Succession Planning Matters for NRIs

Cross-jurisdictional laws complicate matters. Indian immovable property follows local rules; movable assets may follow domicile country laws. Intestate cases require succession certificates, often taking 6-24 months (longer with disputes).

A will overrides default laws, minimizes conflicts and eases executor tasks.

Making a Valid Will as an NRI

Requirements are simple:

• Age 18+, sound mind, voluntary.
• Written, signed by testator.
• Attested by two witnesses.

No physical presence in India needed, execute abroad with witnesses.

Best Practices:

• Appoint India-based executor.
• Register (optional but strengthens authenticity).
• Draft separate India-specific will to avoid foreign probate delays.

Nomination vs. Legal Heirship

Nominee receives asset as custodian, legal heirs/beneficiaries own it.

• Valid will overrides nomination.
• No will: Personal laws determine heirs; nominee transfers accordingly.
• Align nominations with will to prevent confusion.

Intestate Succession: What Happens Without a Will

Assets are distributed per religion-based personal laws. Heirs need a court-issued succession certificate/letters of administration.

Process involves affidavits, proofs, notices and delays are common.

Aspect	With Will	Without Will (Intestate)
Distribution	As per wishes	Per personal laws
Timeline	Months (probate if required)	6-24+ months
Disputes	Reduced	Higher risk
Court Involvement	Limited	Succession certificate mandatory

Governing Laws

Personal laws apply based on religion (not domicile/nationality for Indian assets).

Religion/Group	Applicable Law	Key Features
Hindus, Sikhs, Jains, Buddhists	Hindu Succession Act, 1956	Class I heirs equal share
Muslims	Muslim Personal Law	Fixed fractional shares
Christians, Parsis, Others	Indian Succession Act, 1925	Uniform rules

Immovable (India): Always Indian law.

Movable: Often domicile country law.

Real-World Scenarios

1. Avoided Dispute: NRI with India will, assets transferred smoothly despite foreign domicile.
2. Intestate Delay: Gulf NRI died without will, heirs waited 18 months for certificate amid disputes.
3. Nominee Conflict: Bank paid nominee; will beneficiary sued, resolved favoring will.
4. Cross-Border Issue: UAE NRI without separate India will, foreign probate delayed transfer.
5. Minor Beneficiaries: Will appointed guardian/executor, protected interests.

These highlight planning’s real impact.

Practical Tips

• Inventory all assets (India/abroad).
• Draft/review will every 3-5 years or after life events.
• Align nominations.
• Consider trusts for privacy/control.
• Execute abroad validly (witnesses, attestation).
• Store securely; inform executor.

DIY possible; professionals ensure compliance.

Separate Will for Indian Assets?

Highly recommended, speeds local probate, avoids validating foreign will.

Need help drafting wills, probate or cross-border plans? Reach out to ezyLegal.

Frequently Asked Questions on Succession Planning for NRIs

Q1. Why is succession planning crucial for NRIs?

Ans1. Multiple jurisdictions, personal laws and delays in intestate cases make planning essential.

Q2. Is a will mandatory for NRIs?

Ans2. No, but strongly advised to avoid intestate complications.

Q3. Can NRIs make a will abroad?

Ans3. Yes, valid if written, signed and witnessed.

Q4. Should NRIs have a separate India will?

Ans4. Yes, faster execution, no foreign validation needed.

Q5. Does the nominee become the owner?

Ans5. No, custodian only; transfers to heirs/beneficiaries.

Q6. Will override nomination?

Ans6. Yes, the beneficiary prevails.

Q7. What if no will?

Ans7. Personal laws apply; succession certificate required.

Q8. Which law for intestate?

Ans8. Religion-based personal laws.

Q9. Movable vs immovable treatment?

Ans9. Immovable: Indian law; movable: often domicile law.

Q10. Is will registration compulsory?

Ans10. No, but recommended for credibility.

Q11. Who can be the executor?

Ans11. Any trustworthy person, preferably India-based.

Q12. How often review will?

Ans12. Every 3-5 years or after major changes.

Q13. Probate mandatory?

Ans13. For certain wills in some jurisdictions (e.g., presidency towns).

Q14. Tax on inheritance?

Ans14. No inheritance tax; capital gains on sale.

Q15. Role of trusts?

Ans15. Alternative for privacy, control, avoiding probate.

Q16. OCI succession rules?

Ans16. Same personal laws as religion.

Q17. Minor heirs protection?

Ans17. Appoint guardian in will.

Q18. Foreign will validity in India?

Ans18. Valid but may need reprobate.

Q19. Update after relocation?

Ans19. Yes, domicile changes affect movable assets.

Q20. Asset inventory importance?

Ans20. Helps executor; prevents unclaimed assets.