If you live abroad but own assets in India — or live in India but own assets abroad — your estate planning has a complexity layer most resident Indians never face. Here is the complete framework, country-agnostic, jurisdiction-aware.
For an Indian resident with only Indian assets, estate planning operates within a single legal system. For a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI), the same exercise spans at least two legal systems — the country of residence and India — and possibly more if assets are spread across multiple jurisdictions.
Each legal system has its own rules about:
Getting these wrong leads to: assets stranded in foreign courts for years, double taxation, frustrated wishes about who should inherit, and family disputes spanning continents. Getting them right — with thoughtful, coordinated planning — produces a clean transfer of assets that respects both legal systems.
"Domicile" is a legal concept, distinct from residence or citizenship. It is the country a person treats as their permanent home — the place to which they intend to return even when temporarily abroad. Domicile is significant because:
For an OCI in the UK with Indian property and UK bank accounts, this means: the UK property succession follows UK law (typically per English law of intestacy or per Will), while the Indian property succession follows Indian law (per Indian Will if any, else per applicable personal law of intestate succession).
Note that domicile is sticky — once acquired, it persists until clearly replaced. An Indian who moved to the US 15 years ago, took US citizenship, but retains strong ties to India may still be considered domiciled in India under some interpretations. This needs to be analysed case by case.
NRI estate planning starts with a comprehensive asset map by jurisdiction:
The succession of each asset is governed by the rules of its jurisdiction. A single document attempting to handle both can work, but two coordinated Wills are often cleaner.
There are two common structures for NRI estate planning:
A single Will, executed in one jurisdiction (typically the country of residence), covering all assets globally. Pros:
Cons:
An "Indian Will" covering Indian assets only, executed under Indian law, and a "Foreign Will" covering foreign assets only, executed under the foreign jurisdiction's law. Each Will explicitly limits itself to assets in its jurisdiction and includes language to avoid revoking the other.
Pros:
Cons:
For most NRIs with significant assets in both jurisdictions, Option B (two Wills) is cleaner. For NRIs with only nominal foreign assets, a single India-domiciled Will may suffice.
If you draft an Indian Will (for your Indian assets), the following considerations apply:
Must comply with Section 63 of the Indian Succession Act, 1925 — testator's signature, two witnesses, etc. This can be done while you are physically in India during a visit, or via a video conferencing process in some jurisdictions (though physical execution remains preferred for evidentiary clarity).
Indian Wills can be registered with the Sub-Registrar in India. For NRIs, this typically requires a visit to India for the registration appointment, with two witnesses physically present. Some Indian missions abroad accept attestation but full registration generally requires Indian Sub-Registrar appearance.
Indian succession law for Hindus, Christians, and Parsis generally respects testamentary freedom — you can leave assets to whomever you choose. Indian Muslim succession is different: a Muslim's Will is restricted to 1/3 of the estate without consent of the heirs, with the remaining 2/3 distributed by the Quranic shares.
Probate in India is governed by the Indian Succession Act, 1925. For Wills relating to immovable property in the Presidency towns (Mumbai, Kolkata, Chennai), probate is mandatory for Hindus, Christians, and Parsis. Elsewhere it is generally optional but often required by banks and registrars in practice. The High Court with jurisdiction over the testator's domicile or the property granted probate.
These follow Indian banking rules. Nomination + Will + matching joint mandate is the cleanest combination. On the NRI's death, accounts can be transferred to the nominee, who holds for the legal heirs as per the Will.
Subject to Indian property law and FEMA. The Indian Will needs to specifically identify each property by registration details. On succession, the heir is subject to applicable Indian capital gains tax on subsequent sale, regardless of their NRI status.
FEMA regulations restrict transfer of shares to non-residents in some sectors. A specific bequest of family business equity to an NRI heir needs to verify FEMA compliance. Pricing guidelines apply if shares are transferred for value.
Transmission to nominee or legal heir follows standard transmission rules. NRI heirs may need to convert holdings to NRO demat accounts and remit proceeds via the authorised remittance channels.
Repatriation of inherited Indian assets out of India is subject to FEMA rules. The principal sum from NRE accounts is freely repatriable; sale proceeds of inherited immovable property are repatriable up to USD 1 million per financial year. Heirs need to coordinate with an Indian banker to facilitate compliant transfer.
India does not currently have an inheritance tax (estate duty was abolished in 1985 and not reintroduced). However, the country of the NRI's residence may impose inheritance tax on the worldwide estate of the deceased — UK Inheritance Tax, US Estate Tax for non-domiciles, etc. Some countries also tax the recipient (heir) on inheritance. The interplay between the country of residence's tax law and India's lack of inheritance tax requires careful planning, often involving treaty relief where applicable.
OCI cardholders can inherit immovable property in India (residential and commercial; agricultural land is more restricted). They have rights similar to NRIs in terms of acquiring and holding assets.
This adds complexity, particularly if the spouse is from a civil-law country with forced heirship rules that may attempt to apply to Indian assets. Pre-emptive planning through trusts and clear Will structuring is essential.
Citizenship of children matters for succession of certain assets and certain tax treatments. The Will should clearly identify children by full legal name as registered in their primary jurisdiction.
An NRI's Will may include provisions for parents — both to ensure care during their lifetime and to address their inheritance from the NRI's estate if the NRI predeceases them.
Private family trusts become particularly valuable in NRI estate planning because they can:
Trust structures for NRIs typically involve consultation between Indian counsel and counsel in the country of residence, and may include offshore trust structures in third-country jurisdictions for tax efficiency. The cost-benefit threshold for NRI trust structures is typically lower than for resident Indians because the multi-jurisdictional simplification is valuable in itself.
Law Tarazoo regularly advises NRI clients on the India-side estate plan, coordinating with the client's foreign counsel for the foreign-side documents. The flagship ₹15,000 package covers the Indian Will-drafting work; complex NRI structures with trusts and FEMA compliance are scoped separately based on specifics.