Estate Planning Guide for NRIs 

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 Why NRIs Need a Dedicated Estate Plan​

• Cross‑Border Complexities: Different inheritance laws, tax regimes and jurisdictional rules in India vs. country of residence.

• Probate & Succession Risks: Without a valid Indian will, assets can get tied up in lengthy court proceedings.

• Tax Efficiency: Proper planning can minimize estate duty, gift tax, and double‑taxation.

• Peace of Mind: Clarity for you and your loved ones on asset division, guardianship, and executor roles.

 

Key Components of an NRI Estate Plan​

• Indian Will: Clearly nominates beneficiaries, covers immovable & movable assets in India.

• Power of Attorney (POA): Appoints a trusted representative to manage or sell assets if you’re abroad.

• Nomination Forms: Bank, securities, insurance nominations to ensure seamless transfer.

• Trusts & HUFs: Structures to hold assets, govern succession, and potentially optimize taxes.

• Letter of Wishes: Informal guidance to trustees/executors on your personal wishes.​

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 Step‑by‑Step Estate Planning Checklist​

• Asset Inventory:

  • List immovable property (houses, land) with registration details.

  • List bank accounts, investments, insurance policies.

  • Document business interests (shares, partnerships).

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• Draft Your Indian Will:

  • Choose clear, unambiguous language on asset distribution.

  • Name an executor and alternate executor.

  • Register the will at the local Sub‑Registrar’s office (highly recommended in most states)

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• Execute Power of Attorney:

  • General POA for routine transactions.

  • Special POA for one‑off events like sale of property.

  • Get POA notarized in your country of residence and apostilled/legalised.

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• Nomination & Titling

  • Submit updated nomination forms with banks, mutual funds, and insurers.

  • Title assets in joint names if appropriate (e.g., “you and your spouse”).​

• Consider a Trust or HUF

  • Family Trust: Separates legal ownership from beneficial ownership.

  • Hindu Undivided Family (HUF): Allows pooling ancestral property, with tax benefits.​

  • Tax Planning & Compliance​

  • Consider Double Taxation Avoidance Agreement (DTAA) benefits.

  • Annual disclosure requirements under FEMA/IT return schedule.​    

  • Review gift and estate tax implications in India and your country of residence.

• Periodic Review

  • Update your will/POA after marriage, birth of children, or major asset acquisition.

  • Re‑apostille POA every few years if required.

  • Revisit your plan if laws change (e.g., estate duty revisits, succession law amendments).

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Common Pitfalls to Avoid:

• Unregistered Wills: Unregistered wills are valid, but court admissions can be slow and contested.

• DIY Drafting Without Local Counsel: Generic templates often miss jurisdictional nuances.

• Expired POAs: Some foreign jurisdictions require re‑apostillisation every 3–5 years.

• Neglecting Nomination Updates: Failure to update nominee can result in assets passing contrary to your will.