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Inheritance in India: Laws, Latest Data, and Steps to Secure Your Family’s Future

October 13, 2025
iWills.in Team
An intricate family tree diagram with Indian Rupee symbols, representing inheritance.

Inheritance is not just about passing on wealth—it's about ensuring your family’s financial security for future generations. In India, understanding the laws of inheritance and proactively securing your assets can help avoid disputes, recover unclaimed assets, and safeguard your legacy.

What is Inheritance? Why Does It Matter in India?

Inheritance refers to the process by which assets, property, and wealth are transferred from one generation to another after an individual’s demise. With legal frameworks and robust policies in India, effective inheritance planning is crucial.

Key Inheritance Laws in India

1. Hindu Succession Act, 1956: Governs inheritance among Hindus, Buddhists, Jains, and Sikhs. Major update in 2005 gave daughters equal rights in ancestral property.

2. Indian Succession Act, 1925: Applies to Christians, Parsis, Jews, interfaith marriages, and covers both wills (testamentary) and non-will (intestate) cases.

3. Muslim Personal Law (Shariat) Application Act, 1937: Muslims follow their own inheritance rules, with fixed shares for legal heirs.

Types of Property Relevant to Inheritance

  • Ancestral Property: Passed down four generations without division; all descendants have a birthright.
  • Self-acquired Property: Purchased or gifted properties, freely bequeathable.
Unclaimed Assets: The Data

Did you know? According to a 2025 Ministry of Finance report:

  • Over 90% of unclaimed bank deposits are now searchable on the RBI’s UDGAM portal.
  • Unclaimed insurance funds can be reclaimed for up to 25 years.
  • There is no time limit to reclaim shares and dividends from the IEPF.

Steps to Secure Your Inheritance

1. Create and Register a Will: Draft a clear and legally valid will specifying asset distribution and appointing an executor. Registration is not mandatory but highly recommended for authenticity.

2. Identify and Gather Key Documents: Original will (if available), Death certificate of the asset holder, Property title deeds, Legal heir or succession certificate.

3. Claim Unclaimed Assets from Government Funds:

Bank Deposits: Check and claim dormant accounts via your bank or the RBI UDGAM portal. Legal heirs can claim with no time bar; banks repay the claim and recover from the DEA Fund.

Mutual Funds: Use AMC/RTA sites or MF Central’s “MITRA” to trace and recover inoperative folios.

Shares & Dividends: Search at IEPF portal, file Form IEPF-5, and submit supporting documents online + physical copies.

Insurance: Contact insurers; even after 10 years, claims are entertained for up to 25 years post-transfer to SCWF.

4. Complete Property Mutation: Transfer property records into your name at the local municipal office for legal ownership.

5. Keep Your Records Updated: Regularly update nominee, KYC, contact, and address details for all financial accounts and policies.

Pro-Tips to Avoid Unclaimed Inheritance

  • Inform your family about all assets and keep details accessible.
  • Register and update nominations/beneficiaries for each financial product and insurance.
  • Store digital and paper copies of important documents in secure but known locations.

Conclusion

Inheritance in India is governed by clear laws but requires proactive steps to ensure smooth transitions. The Government of India has enhanced digital access for tracking lost or dormant assets, making it easier than ever for heirs to claim their rightful inheritance.

Planning today ensures peace of mind and a secure tomorrow for your loved ones.

For more on official processes and claim formats, refer to the latest Ministry of Finance white paper, "Your Money, Your Right" (Sep 2025).