CrossBorder Inheritance & Estate Planning Guide | Truelegacy

Discover estate planning strategies to protect wealth, & ensure smooth succession for NRIs & families with assets across multiple countries.

India has the largest diaspora in the world, with 18 million people living outside the country.

From the first generation NRI’s who have left their homeland with an underlying urge to prosper and succeed to the millennial Indians settled across the globe, they have created a mark across the world.

The major expansion of Indians abroad resulted in the accumulation of wealth and investments across different continents.

In the fit of making investments often many people forget about the fate of these assets.

Whether the assets will be passed on to the heirs of their choice? What laws will be applied? These questions are not thought through when one makes an investment abroad and when it comes to the assets that are left behind by their loved ones in India, it ends up in chaos when one gets to know the endless formalities and compliances of law in association with transferring of the assets.

This necessitates the NRIs to have a deeper understanding of the inheritance laws to manage the assets and properties across the border.

The inheritance laws not only differ between the countries, but it also differs based on the religion and the local laws of various regions and states within the country.

Having said that, it is also essential to note that the inheritance laws do not possess many hurdles when it comes to exchange of assets, but the procedural compliances and controls creates a major roadblock.

This necessitates the NRIs to have a deeper understanding of the inheritance laws to manage the assets and properties across the border.

The inheritance laws not only differ between the countries, but it also differs based on the religion and the local laws of various regions and states within the country.

Having said that, it is also essential to note that the inheritance laws do not possess many hurdles when it comes to exchange of assets, but the procedural compliances and controls creates a major roadblock.

Important Inheritance Laws in India for NRIs.

The essential points that must be kept in mind for the NRIs while thinking of inheritance is that: Under Indian inheritance laws, an heir whether through testamentary or intestate succession can be of any nationality or residence.

There are no forced heirship rules under Indian personal laws (except Islamic personal law) consequently, individuals may bequeath or gift off the entirety of the estate.

There is currently no estate duty, death tax or inheritance tax in India.

However, there is a speculation about the reintroduction of the estate duty in the near future and individuals are advised to plan accordingly.

Indian exchange controls regulate the inflow and outflow of currency from India.

There are strict rules on how much a person can repatriate from or bring into the country.

Comprehensive understanding on Indian Succession laws.

Comprehensive understanding on Indian Succession laws The succession laws in India are mainly governed by the religion of the deceased Hindu Succession Act, 1956 for Hindus as well as to those belonging under the Sikh and Jain community.

Indian Succession Act, 1925 for Christians, Parsis, and those who do not recognise themselves under any religion.

Muslim Shariat Act, 1937 for Muslims.

NRIs are required to be aware of the respective succession laws, to ensure fair distribution of assets among heirs.

Understanding Property Inheritance.