The Global Indian’s Dilemma: Why Your US or European Will Is Not Enough for Your Assets Back Home
If you are reading this, you likely live a global life. You might be paying taxes in Toronto, building a career in London, or raising a family in California. But your roots—and likely a significant portion of your wealth (real estate, NRE accounts, ancestral land)—remain in India.
There is a common, dangerous assumption many Non-Resident Indians (NRIs) make:
"I have already made a Will in the US/UK/Canada. It covers everything global, so I am safe."
You might NOT be.
Inheritance laws are territorial. What works in New York or Berlin often clashes violently with the legal reality in New Delhi. By relying on a single foreign Will, you might be exposing your Indian heirs to years of litigation, frozen assets, and confusion.
Here is how India’s inheritance laws differ from the countries where you live—and why that difference matters to your wallet.
1. India vs. Europe: The "Forced Heirship" Trap
If you live in Civil Law countries like France, Germany, Italy, or Spain, you are likely subject to "Forced Heirship."
These laws dictate that a specific portion of your estate must go to your children, regardless of your relationship with them. You cannot disinherit a child or leave everything to your spouse even if you want to.
The India Advantage:
For Hindus, Sikhs, Jains, and Christians in India, the law respects Testamentary Freedom over self-acquired property.
If you bought an apartment in Bangalore with your own money, you are the boss. You can leave 100% of it to your spouse, a specific child, or even a charity. You are not forced to divide it equally if you have a valid Will. But if you try to use a European Will to distribute Indian property, the "forced heirship" rules of your residence could conflict with Indian transfer procedures, creating a legal deadlock.
2. India vs. US & UK: The "Death Tax" Haven
In the UK, Inheritance Tax (IHT) is a steep 40% on estates above a certain threshold. In the US, while the federal exemption is high, state-level estate taxes and processes can be grueling.
The India Advantage:
India currently has ZERO Inheritance Tax (Estate Duty was abolished in 1985).
If you transfer your Indian assets to your heirs through a valid Indian Will, they pay 0% tax on the inheritance itself. However, if your global Will lumps your Indian assets with your US/UK estate, you risk complicating the tax residency status of those assets, potentially inviting tax scrutiny abroad that could have been avoided with a ring-fenced Indian Will.
3. India vs. Canada/USA: The "Probate" Cost Difference
In North America, "Probate" (the court process to validate a Will) is often mandatory, public, and expensive (lawyers can charge a percentage of the estate value).
The India Advantage:
In India, Probate is not mandatory for immovable properties in most states (even in properties in Mumbai, Chennai, or Kolkata after the 2025 Amendment).
This means if you own land in Delhi, Hyderabad, or Pune, your heirs might just need your registered Will and a mutation entry to transfer the title—skipping the court process entirely.
The Catch: If you use a US/Canadian Will for these Indian assets, the Indian authorities may demand a "Letter of Administration" from an Indian court to validate that foreign document. This effectively forces your heirs into the very court battle you tried to avoid.
4. The "Domicile" Rule: Why One Will Doesn't Rule Them All
This is the most technical but critical point.
Movable Assets (Bank Accounts/Shares): Inherited based on the law of the country where you live (Domicile).
Immovable Assets (Real Estate): Inherited based on the law of the country where the property is located (Lex Situs).
If you live in Toronto but own a flat in Mumbai, Canadian law governs your cash, but Indian law governs your flat. A single Canadian Will trying to manage both often fails the scrutiny of the local Indian Sub-Registrar, who demands documents in a specific Indian legal format.
The Solution: The "Ring-Fenced" Indian Will
The smartest estate planning move for a Global Indian is not one "Mega Will," but Concurrent Wills.
A Foreign Will: For your assets in the country you reside in (US/UK/Canada).
A Separate Indian Will: exclusively for your India-based assets (Properties, NRE/NRO accounts).
This separates your Indian assets from your global estate, ensuring they enjoy the tax-free, speedier, and more flexible inheritance laws of India.
Don't let a foreign law complicate your Indian legacy.
At iWills.in, we specialize in helping NRIs create legally robust, India-specific Wills that work in harmony with your global estate planning.