NRI Inheritance: The Necessity of A will to Protect your Legacy

The diaspora of India is spread all over the world, with NRIs having residences in many countries. Their links to India frequently go beyond mere citizenship; many have emotional and financial ties to their home country. Apart from that, when an NRI wants to visit his home country he can grab cheap tickets to India from Canada through Tripbeam for hassle-free travel. These individuals find themselves managing physical and digital assets in their home country. However, when someone dies, maintaining their assets and properties in a foreign nation might be difficult for their family. In addition to suffering the loss of a loved one, there is concern about potential legal issues caused by a conflict of laws. The effort becomes more than just managing sets; it also involves protecting a bit of their identity.

NRI Inheritance Laws

Asset and property administration beyond borders for NRIs necessitates a thorough understanding of the complex network of inheritance laws. These regulations differ between nations, within regions or states within a country, making estate planning for NRIs more complex.

Before you purchase Business class flight tickets to India, you should know that In India, personal rules concerning religion or ethnicity mostly determine the legal foundation for inheritance. For example, the Hindu, Muslim, Christian, Jain, and Parsi communities each have their own set of inheritance laws, which might differ significantly. However, the host nation in which NRI stays may have its own set of inheritance rules. These laws can range widely, from common law to civil law systems. The conflict of these several legal systems results in a complex tapestry of legislation that NRIs must negotiate.

Let us clarify this with the help of the following case study:

Mr Mohan is a 45-year-old NRI of Indian origin. He has lived in Canada for the last 20 years and strictly follows Hinduism. He also gradually developed his professional career as an ICT professional in Canada with several assets built up here over the years —both real estate and financial investments, in Canada as well as in domain country India.

Mr. Mohan died after a heart attack, leaving considerable assets in both Canada and India. His family, including his wife, children, and parents found themselves in a complicated situation.

Conflict of Laws

A conflict of laws, often known as private international law, occurs when the legal systems of two or more countries clash. This arises when an NRI’s assets are located in one nation but have legal ties to another, usually their host country. To resolve these problems, considerable thinking and the assistance of legal professionals with cross-border estate planning experience are required.

The legal foundation for inheritance in India differs depending on the religion of the individual. As a Hindu, Mr Mohan’s inheritance in India is mostly governed by Hindu personal laws. The Hindu Succession Act of 1956 establishes particular rules for splitting assets among legal successors. These laws may differ drastically from those applicable to non-Hindus in India.

Canada follows a common law system and has its own set of regulations for asset distribution after death. Thus, Mr Mohan’s assets in Canada are subject to Canadian inheritance rules.

The family was presented with the issue of balancing the needs of two different legal systems while following the deceased’s desires. It resulted in legal complications, delays in wealth distribution, and further stress during an already emotionally charged time for the family.

You can read further about:- Can NRIs Buy Farm Land in India? Find Out Here

The Importance of a Well-Written Will

A will defines how your assets and property should be transferred upon death, serving as a legal document. Having a will is more than simply a recommendation for NRIs; it is an essential instrument for ensuring that their desires are followed and their legacy is preserved. Without a will, the disposition of one’s possessions may not reflect their objectives, resulting in lawsuits and legal issues.

A well-drafted will for NRIs handles these complications and helps to avoid potential disputes. It provides specific instructions on how to disperse assets, regardless of the various legal systems and cultural dynamics.

Among the essential things you need to include in your will as an NRI are beneficiaries, an executor, and an extensive inventory of your assets. It is necessary to engage expert legal counsel to ensure that the will complies with Indian and foreign laws. Once created, the will must be performed and registered in India. Proper documents and witnesses are required to validate the will.

If Mr Sharma had drafted a well-considered will that clearly outlined the distribution of his assets, he could have streamlined the process, reduced disputes, and ensured that his intentions were upheld even in the face of conflicting legal frameworks. Wills are very essential for non-resident Indians (NRIs). These legal documents allow the protection of one’s legacy and assets, regardless of the place of residence. Estate planning is a lifetime process, not an event of one step. One has to keep updating the will, have it reviewed regularly, and change it to adapt to changes in life or financial circumstances. It allows individuals to preserve their legacy and ensure the well-being of their loved ones, regardless of their location. Last but not least, you can secure last minute flights from Canada to India through Tripbeam.