NRI inheritance: You live abroad, your assets are in India — which country's laws decide who inherits?

Managing assets across global jurisdictions involves navigating intricate and distinct succession laws . For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) with global families and investments, understanding how property transfers upon death is crucial to mitigating legal delays and disputes.

For example, an NRI who owns assets in India and marries a foreign citizen. The NRI may continue to hold Indian citizenship or may acquire citizenship of another country. In the latter case, the person could seek Overseas Citizen of India (OCI) status, if eligible. Their foreign-national spouse and children may also qualify for OCI registration, subject to applicable requirements.

This raises an important question: when the NRI dies, which country's laws will determine who is entitled to the assets?

Under Indian law, asset classification dictates which legal framework applies when someone dies without a will (intestate):

For example, if an Indian citizen residing in Singapore dies intestate holding Singaporean fund units and real estate in India, Singaporean law determines the transfer of the funds, while Indian succession laws (such as the Hindu Succession Act, 1956) govern the Indian real estate.

A marriage solemnized abroad in accordance with foreign laws is generally recognized in India for inheritance purposes, provided it meets fundamental legal criteria. Specific registration in India is not mandatory to establish inheritance rights for a surviving spouse. (Note: The Registration of Marriage of Non-Resident Indian Bill introduced in 2019 to require compulsory registration for certain NRI marriages lapsed and will not be reinitiated).

Foreign nationality does not disqualify an heir from inheriting Indian assets. The Supreme Court of India has affirmed that citizenship is not a bar to inheritance. However, regulatory requirements apply post-inheritance:

To avoid split-jurisdiction conflicts, prolonged probate delays, and family disputes, cross-border estate planning relies on clear documentation.

Formalization and Attestation: While registration of a will is not mandatory under Indian law, registering or notarizing an overseas will, followed by attestation from the local Indian embassy or consulate, strengthens its validity before Indian financial institutions and courts.

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