Creating a will is a crucial aspect of estate planning, ensuring that your assets are distributed according to your wishes after your demise. For Non-Resident Indians (NRIs), making a will in India involves some unique considerations due to their international status. In this article, we will provide valuable tips for NRIs who are planning to draft a will in India.
1. Understand Indian Laws and Regulations
NRIs need to be aware of Indian laws and regulations regarding wills. India follows diverse personal laws based on religion, which can affect the distribution of assets. The Indian Succession Act, 1925, is applicable to many NRIs. It’s advisable to consult with a legal expert to understand the specific laws that apply to your situation.
2. Choose the Right Jurisdiction
Decide where you want to register your will. NRIs can register their will in India, but it can also be registered in the country where they currently reside. Selecting the appropriate jurisdiction is crucial as it can impact the ease of executing the will later on.
3. Appoint an Executor
An executor is responsible for carrying out the terms of your will. Choose a trusted family member, friend, or legal professional who is willing and capable of handling this responsibility. Ensure they are aware of your wishes and the legal procedures involved.
4. List Your Assets Clearly
Compile a comprehensive list of your assets, including bank accounts, investments, real estate, jewelry, and other valuables. This detailed inventory will make it easier for your executor to distribute your assets correctly.
5. Be Mindful of Tax Implications
Consider the tax implications of your bequests. India has an inheritance tax known as the Estate Duty Act, but it was abolished in 1985. However, other taxes, such as capital gains tax, may still apply to certain assets. Seek advice from a tax expert to minimize the tax burden on your heirs.
6. Nominate Beneficiaries and Contingent Beneficiaries
Clearly specify who your beneficiaries are and the portion of your assets they will receive. Additionally, designate contingent beneficiaries in case the primary beneficiaries predecease you or are unable to inherit.
7. Guardianship for Minor Children
If you have minor children, appoint a guardian in your will. This ensures that someone you trust will take care of them in case of your untimely demise.
8. Keep the Will Updated
Life circumstances change, so it’s essential to review and update your will periodically. Major life events like marriage, divorce, the birth of children, or significant changes in assets should prompt a review and potential amendment of your will.
9. Witnesses and Notarization
In India, a will should be signed by the testator (the person making the will) and witnessed by two individuals. These witnesses should not be beneficiaries or their spouses. It’s advisable to notarize the will for added legal validity.
10. Seek Legal Counsel
Creating a will, especially as an NRI, can be complex due to the varying legal requirements and potential international considerations. To ensure your will is legally sound and aligns with your intentions, consult with an experienced Advocate/ Legal Consultant who specializes in estate planning for NRIs.
Creating a will in India as an NRI requires careful consideration of legal, financial, and personal factors. By understanding the relevant laws, seeking professional guidance, and keeping your will up to date, you can ensure that your assets are distributed as you wish and provide peace of mind for your loved ones during a difficult time.
