NRI Estate Planning: Wills, Nominees, and Cross-Border Inheritance

An NRI with assets in both India and their country of residence should maintain two separate wills — one under Indian law governing Indian assets, and one under the residence country's law governing assets there. A single will may not be recognised across jurisdictions, creating probate complications. Seek a solicitor/lawyer with cross-border estate experience.

India has multiple personal succession laws that apply based on religion. Understanding which applies to you is the starting point for Indian will planning:

• Hindu Succession Act (1956): applies to Hindus, Buddhists, Jains, and Sikhs. Provides clear intestate succession rules. A will can override these rules.
• Muslim Personal Law (Shariat): applies to Muslims. Testamentary freedom is limited — a Muslim testator cannot bequeath more than 1/3 of their estate to non-heirs by will.
• Indian Succession Act (1925): applies to Christians, Parsis, and those who don't belong to religions with personal laws. Also applies to NRIs who've converted or inter-married in ways that affect their religious personal law classification.
• Married Women's Property Act: wives and children of insured persons have certain rights to insurance proceeds — relevant for life insurance held in India.
• Intestate (dying without a will): the relevant personal law determines who inherits. For Hindus: spouse, children, and mother get equal shares (Class I heirs).

An Indian will governs the distribution of your Indian assets (property, bank accounts, mutual funds, shares). It does NOT need to be registered to be valid, but registration adds evidentiary weight:

1. Draft the will: specify each Indian asset and the beneficiary. Include the full legal description of any property (survey number, district, registration details).
2. Sign in the presence of two witnesses (who should not be beneficiaries). Both witnesses sign below your signature.
3. Optional registration: take the will to the Sub-Registrar's office in the district where the property is located. Registration provides a public record and reduces the chance of the will being challenged.
4. Notarisation: have the will notarized if you're drafting it abroad. A notarised will is more easily recognised in Indian probate proceedings.
5. Keep multiple copies: with your CA/lawyer in India, with a trusted family member in India, and with yourself abroad.
6. Review every 3–5 years: as assets change, update the will. A codicil (amendment) can modify an existing will without rewriting the whole document.

When an NRI dies holding Indian assets, their beneficiaries must go through a legal process to access and transfer those assets. The process depends on whether there's a valid will:

• With a registered will: apply for probate at the High Court in the jurisdiction where the property is located. Probate confirms the will is valid and the executor has authority to act. Process: 6 months to 2+ years depending on court backlog.
• Without a will (intestate succession): apply for a Succession Certificate (movable assets) or Letter of Administration (immovable assets) from the court. More complex than probate.
• Bank accounts: banks require either a death certificate and nomination form (if nominee is properly registered) or court order for nominee-less accounts.
• Mutual fund units: AMFI has streamlined the transmission process. Submit death certificate, ID proof of claimant, and indemnity bond. Processed within 30 days for registered nominees.
• Cross-border probate: a probate granted in a foreign country may not automatically be recognised in India. You may need a separate Indian probate for Indian assets — one reason why having a separate Indian will is important.

NRI estate planning is complicated by the interaction of two (or more) legal systems. Indian succession law applies to Indian assets. The law of your country of residence typically applies to assets held abroad. Without proactive planning, your estate may be subject to complex multi-jurisdiction probate.

• Indian assets: governed by Indian Succession Act 1925 for non-Hindus, Buddhists, Sikhs, and Jains. Hindu Succession Act 1956 for Hindus. Muslim personal law for Muslims.
• Indian succession for NRIs: if you die without a will, Indian law determines who inherits your Indian assets. Hindu law gives equal shares to Class I heirs (spouse, children, mother). This may not match your wishes.
• Foreign assets: generally governed by law of the country where the asset is located (immovable property) or country of domicile (movable property — stocks, bank accounts).
• UK domicile and Indian NRI: if you've been in the UK for many years, HMRC may argue you're 'domiciled' in the UK for IHT purposes even if you maintain Indian citizenship. Domicile is complex — take professional advice.
• IBKR account on death: IBKR will freeze the account and require estate documentation. For non-US entities (IBKR UK, IBKR IE), UK/Irish probate documents are required. For IBKR US accounts, US estate administration may be needed.

• Make a will in India: covering all Indian assets (property, bank accounts, mutual funds, demat holdings). Have it registered for strongest legal standing. Update whenever major assets change.
• Make a will in your country of residence: covering all foreign assets. Coordinate with an Indian will to avoid contradictions — the two wills should be consistent and each specifically exclude assets covered by the other.
• Add nominations everywhere: mutual funds, demat accounts, NRE/NRO bank accounts, Indian insurance policies, and IBKR. Nominations don't override will in law but they simplify asset transfer significantly.
• OCI card for succession: Overseas Citizens of India have the same property rights as NRIs. OCI status simplifies cross-border financial relationships.
• Keep a document inventory: maintain a list (stored securely, accessible to your family) of all accounts, brokerages, insurance policies, property documents, and their locations. Include account numbers and instructions for access.
• Power of attorney: grant a trusted person in India a Power of Attorney to manage Indian assets in your absence or incapacity. General POA for broad authority or specific POA for named assets.

• IBKR account transfer on death: IBKR has a designated beneficiary form. Filing it means your account passes directly to the beneficiary without probate. Without it, the estate administrator must go through IBKR's legal department — a multi-month process.
• NRE account on death: passes to nominee under the DEPOSIT Insurance scheme first. Nominee can receive the funds and then distribute per the will. Nominee is NOT automatically the owner — they hold as trustee for the legal heirs unless they are also the heir.
• NRO account: similar to NRE. Nominee receives first. Legal heirs entitled per succession law.
• UK stocks and ISA: ISA cannot be inherited as an ISA — it must be closed and assets distributed. A surviving spouse can inherit an 'additional permitted subscription' to top up their own ISA. Otherwise, the ISA wrapping is lost.
• UK pension/SIPP: death benefits from SIPP are outside the estate if you nominate a beneficiary. File an Expression of Wishes form with your pension provider. Death before 75: heirs receive the fund tax-free. Death after 75: heirs pay income tax on withdrawals at their marginal rate.