Succession Planning for NRIs in India: Wills, Nomination & Legal Heirs Explained

Succession planning is one of the most important yet most ignored aspects of financial and family security for Non-Resident Indians (NRIs). Many NRIs own property, bank accounts, investments, insurance policies, businesses, and ancestral assets in India, while also holding assets abroad. When such assets are spread across jurisdictions, a lack of proper succession planning can lead to years of delay, family disputes, court cases, and unintended outcomes.

Contrary to popular belief, nominations alone do not decide ownership, and foreign wills do not always work smoothly for Indian assets. Indian succession laws are religion-based, asset-specific, and court-driven in intestate cases. Without clarity, legal heirs often struggle with succession certificates, probate, re-probate, and conflicting claims.

This detailed guide explains everything NRIs need to know about:

1. Wills made by NRIs

2. Nomination vs legal heirs

3. Intestate succession

4. Applicable Indian succession laws

5. Cross-border complications

6. Practical planning strategies

The goal is simple: help NRIs ensure that their assets pass smoothly, lawfully, and exactly as they intend.

Also Read: NRI Property Transfer in India: Key Considerations & Legal Guidelines

Why Succession Planning Matters for NRIs

Succession planning is crucial for NRIs because Indian assets are governed by Indian law, regardless of where the NRI resides or holds citizenship.

Key reasons succession planning is essential:

1. Multiple Legal Systems Apply

   1. Immovable property in India is always governed by Indian law

   2. Movable assets may be governed by the law of the country of domicile

   3. Foreign probate does not automatically work in India

2. Intestate Succession Is Slow and Costly

   1. Succession certificates or letters of administration are mandatory

   2. Typical timelines range from 6 months to 24 months, often longer if disputes arise

3. Family Disputes Are Common

   1. Misaligned nominations

   2. Multiple marriages or children

   3. Overseas heirs unfamiliar with Indian procedures

4. Indian Courts Are Document-Driven

   1. Clear wills drastically reduce litigation

   2. Absence of a will shifts control to statutory rules, not personal wishes

A properly drafted will ensures certainty, speed, and peace of mind for both the testator and the family.

Also Read: Illegal Possession of NRI Property in India: A Complete Guide to Your Legal Remedies

Understanding the Basics of Succession for NRIs

Before diving into wills and nominations, NRIs must understand three foundational concepts:

1. Testator

The person who makes the will.

2. Legal Heirs

Persons entitled to inherit under personal laws if there is no will.

3. Beneficiaries

Persons named in the will to receive assets.

These roles may overlap but are legally distinct.

Also Read: NRI Estate Planning: Should You Draft Separate Wills for Global Assets?

Making a Valid Will as an NRI

One of the biggest myths is that NRIs must be physically present in India to make a valid Indian will. This is not true.

Who Can Make a Will?

An NRI can make a valid will if:

1. The person is 18 years or older

2. Is of sound mind

3. Acts voluntarily

4. Understands the nature and effect of the will

Nationality or residence is irrelevant.

Legal Requirements of a Valid Will in India

A will is legally valid in India if it:

1. Is in writing (handwritten or typed)

2. Is signed by the testator

3. Is attested by two witnesses

4. Witnesses sign in the presence of the testator

No stamp duty is required for a will in India.

Can an NRI Execute a Will Outside India?

Yes. An NRI can execute a will:

1. In a foreign country

2. Before local witnesses

3. Without visiting India

The will remains valid for Indian assets if it satisfies Indian legal requirements.

Also Read: Permission for Sale of Minor Property

Best Practices for NRIs While Drafting a Will

1. Appoint an India-Based Executor

An executor located in India can:

1. Liaise with banks, registrars, courts

2. Reduce delays

3. Handle procedural requirements smoothly

2. Consider Registering the Will

Will registration is optional, but it:

1. Strengthens authenticity

2. Reduces chances of challenge

3. Helps prevent loss or tampering

3. Draft a Separate Will for Indian Assets

This is highly recommended because:

1. Foreign probate may not be automatically recognised

2. Indian courts may require re-probate

3. Separate wills prevent jurisdictional conflicts

4. Clearly Describe Assets

Mention:

1. Property details (survey number, address)

2. Bank account identifiers

3. Investment folio numbers

Nomination vs Legal Heirship: Understanding the Difference

Many NRIs assume that nominees automatically become owners. This is legally incorrect.

What Is a Nomination?

A nomination authorises a person to:

1. Receive the asset from the institution

2. Hold it as a custodian

What Nomination Does NOT Do:

1. It does not confer ownership

2. It does not override a will

3. It does not replace legal heirs

Who Ultimately Owns the Asset?

Aligning nominations with the will avoids confusion and disputes.

Intestate Succession: What Happens If an NRI Dies Without a Will?

If an NRI dies without a will:

1. Assets are distributed according to religion-based personal laws

2. Courts become mandatory

3. Heirs must obtain:

   1. Succession Certificate (movable assets)

   2. Letters of Administration (immovable assets)

Court Process in Intestate Cases

1. Filing petition

2. Submission of affidavits

3. Issuance of public notice

4. Objection period

5. Court hearings

6. Final grant

This process often takes 6 to 24 months, sometimes longer.

Comparison: With Will vs Without Will

Governing Succession Laws in India

Indian succession laws depend on religion, not nationality or residence.

Applicable Laws by Religion

Asset-Based Application of Law

• Immovable property in India: Always governed by Indian law

• Movable assets: Often governed by domicile law

Cross-Border Succession Challenges for NRIs

Common Issues:

1. Foreign wills not recognised automatically

2. Re-probate required

3. Conflicting inheritance rules

4. Delays in bank and property transfers

Example Scenarios:

1. Gulf NRI dies without Indian will → heirs wait 18 months

2. Foreign probate delays Indian mutation

3. Nominee vs beneficiary litigation

4. Minor heirs left unprotected

Protecting Minor Beneficiaries

A will allows NRIs to:

1. Appoint guardians

2. Create conditional bequests

3. Prevent court-appointed guardianship

This is especially important for children living abroad.

Should NRIs Consider Trusts?

Trusts can be useful when:

1. Privacy is important

2. Control over distribution is needed

3. Minor or dependent beneficiaries exist

4. Large family structures are involved

However, trusts require careful legal structuring.

Practical Succession Planning Checklist for NRIs

1. Prepare a complete asset inventory

2. Draft or review will every 3–5 years

3. Align nominations with will

4. Appoint executor and guardian

5. Store will securely

6. Inform executor of location

7. Revisit plan after:

   1. Marriage

   2. Divorce

   3. Birth

   4. Property purchase

   5. Relocation

DIY wills are possible, but professional review ensures legal compliance and enforceability.

Also Read: Why You Need a Power of Attorney for Property? Know everything with LegalKart

Final Thoughts: Planning Today Prevents Problems Tomorrow

Succession planning for NRIs is not about wealth—it is about clarity, family harmony, and certainty. A simple, well-drafted will can save families years of litigation and emotional distress.

Indian succession laws are clear, but unforgiving when ignored. Early planning ensures your legacy is transferred smoothly, lawfully, and exactly as you intend.