Most NRI estate planning conversations focus on India alone. But an NRI living in Dubai with a property in Mumbai, a bank account in London, and a brokerage account in the US has an estate that spans four different legal systems. No single will, written under any one country’s laws, automatically governs all of these assets.

NRI estate planning is more complex than resident Indian estate planning because of this multi-jurisdictional reality. Getting it right requires understanding which law governs which asset, where disputes will be resolved, and how to prevent assets in one country being frozen while probate in another country is pending.

Key Takeaways

• A will valid in India may not be automatically recognised in the UAE, UK, or US without a separate registration or validation process in each country.

• Movable assets (bank accounts, shares, mutual funds) are generally governed by the law of the country where the account holder was domiciled at death. Immovable assets (property) are governed by the law of the country where the property is located.

• FEMA governs what an NRI’s estate can and cannot do with Indian assets after the NRI’s death. Repatriation by the heirs is allowed but subject to FEMA documentation requirements.

• Many NRIs have two or three separate wills: one for Indian assets under Indian succession law, and one or more for foreign assets under the laws of the relevant countries.

• Nominees on Indian accounts do not override the will. The nominee collects assets as a custodian; the will determines who ultimately receives them.

The Jurisdiction Problem: Which Law Applies?

The first issue in NRI estate planning is understanding which country’s law governs each asset. The general principles are:

• Immovable property (land, buildings): governed by the law of the country where the property is located. A Mumbai flat is governed by Indian succession law regardless of where the owner lived or what their will says.
• Movable assets (bank accounts, shares, mutual funds, bonds): generally governed by the law of the country where the owner was domiciled at the time of death.
• Indian assets held by an NRI domiciled abroad: for movable assets, the courts and legal system of the NRI’s country of domicile may have jurisdiction, but in practice, the Indian financial institution will require Indian legal documentation for transmission.

This creates a practical problem. An NRI who was domiciled in the UAE at the time of death has assets in India that Indian banks and registrars will process under Indian succession procedures, but the asset’s legal determination may depend on UAE succession law. For UAE residents, UAE personal status law (which may follow the national law of the deceased in some cases) adds another layer.

The safest approach for most NRIs is to have a separate will covering their Indian assets, drafted by an Indian lawyer familiar with the Indian Succession Act or the personal law applicable to the NRI’s religion, and registered in India.

For Indian Assets: What an NRI Estate Covers

NRIs typically hold some or all of the following India-linked assets that need to be addressed in estate planning:

Asset Type	Who Can Inherit?	Key Process for Heirs	FEMA Repatriation?
NRE savings or FD accounts	Resident Indians or NRIs as specified in nomination or will.	Transmission request to bank with death certificate, succession proof.	Yes. NRE proceeds are fully repatriable by NRI heirs.
NRO savings or FD accounts	Resident Indians or NRIs.	Transmission request to bank. 15CA/15CB may be required for repatriation by NRI heirs.	Yes, within USD 1 million per year. Taxes must be cleared.
FCNR deposits	As per nomination or will.	Bank transmission process. Foreign currency proceeds are repatriable for NRI heirs.	Yes. Fully repatriable foreign currency amounts for NRI heirs.
Indian property (residential, commercial)	Resident Indians or NRIs (subject to FEMA restrictions on certain property types). PIOs and OCIs have different rules.	Registered transfer or succession certificate. May need FEMA compliance confirmation for agricultural land.	Yes for NRI heirs. Up to 2 properties may be repatriated for residential property.
Shares in Indian listed companies	As per nomination or will.	Transmission request to depository participant (DP) with death certificate and succession documentation.	NRI heirs can hold or repatriate sale proceeds under FEMA.
Mutual fund units	As per nomination or will.	Transmission request to AMC/RTA.	NRI heirs can continue holding or redeem and repatriate.

The Two-Will Strategy Most NRI Financial Planners Recommend

Having a single will that purports to govern all assets globally creates administrative complexity and legal uncertainty. If that will is written under Indian law and needs to be used in the UAE, it must be apostilled, translated if necessary, and validated under UAE courts before it is effective for UAE assets. This takes time during which UAE assets may be frozen.

The practical solution most NRI financial planners and legal professionals recommend is:

1. A will for Indian assets: drafted under Indian succession law (Hindu Succession Act, or Indian Succession Act for Christians and Parsis, or Muslim personal law for Muslims), executed in India, and ideally registered in India. Clearly states that it covers only Indian assets and does not revoke any foreign will.
2. A will (or wills) for foreign assets: drafted under the laws of each country where assets are held. For UAE: a DIFC will or Abu Dhabi will for non-Muslim expatriates. For the UK: a will under English law. For the US: a US will covering the brokerage account. Each will explicitly states that it covers only assets in that jurisdiction.

The key drafting requirement for both wills: each must state clearly which jurisdiction’s assets it covers and must not revoke the other. A poorly drafted will that ‘revokes all prior wills’ will revoke the foreign will if signed after the Indian one, creating exactly the problem the two-will strategy was designed to prevent.

Nominees: The Most Misunderstood Aspect of NRI Estate Planning

NRIs often assume that nominating a family member on an NRE account, an FCNR deposit, or a demat account is the same as leaving that asset to them in a will. It is not.

In India, a nominee is a custodian, not a beneficial owner. When an account holder dies, the institution releases the asset to the nominee for administrative convenience. But the nominee is legally obligated to then distribute the asset according to the will or applicable succession law. If the will says the asset goes to someone other than the nominee, the nominee must comply.

The practical importance: for NRIs, the nominee needs to be someone who is physically present in India, accessible, and trusted to collect and distribute assets correctly. Nominating a Dubai-based relative for an Indian account creates practical complications for the transmission process, even though it is legally permissible.

Update your nominees across all accounts at least every three to five years and after every major family event. A deceased nominee who has not been replaced is one of the most common and costly estate administration failures for NRIs.

FEMA Rules for NRI Asset Transfer to Heirs

When an NRI dies, their Indian assets are transferred to the heirs subject to FEMA regulations:

• Resident Indian heirs: can receive NRE/FCNR proceeds into their resident accounts. Can hold inherited Indian property as residents.
• NRI heirs: can receive proceeds into their NRE or NRO accounts. Can hold or sell inherited Indian property subject to FEMA rules on residential and commercial property.
• Foreign national heirs (non-PIO, non-OCI): can receive inherited Indian assets subject to RBI approval in some cases, particularly for Indian property. The process is more complex and may require RBI permission for repatriation.
• Agricultural land: NRIs cannot purchase agricultural land in India. But they can inherit it. If they want to sell, the proceeds can be repatriated subject to conditions.

Repatriation of inherited assets by NRI heirs is generally allowed, but the documentation requirements are significant: proof of death, succession document (will, legal heir certificate, or succession certificate), FEMA declaration, and in some cases CA certification. NRI heirs who plan to repatriate inherited assets should engage an FEMA specialist and a CA to manage the process.

Key Steps Every NRI Should Take Now

3. List all assets by country: India, UAE, UK, US, or wherever they are held. Note the type, approximate value, nominee if any, and institution.
4. Draft or update the Indian will. Have it registered in India. Confirm it explicitly covers only Indian assets.
5. Draft or update foreign wills for assets in each other country. Confirm each will does not revoke the Indian will.
6. Update nominees across all accounts. Confirm nominees are accessible individuals who understand their custodian role.
7. Share a master asset document with a trusted family member: where every account is, what the nominee details are, and where the wills are stored.
8. Engage an FEMA specialist in India for any asset that NRI heirs will need to repatriate. The documentation process is non-trivial.

Fortune Wealth is a SEBI-registered investment firm serving NRI investors from Mumbai and Dubai. We help NRI clients manage their India-linked investment portfolios as part of their overall wealth structure.

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Frequently Asked Questions

Does an Indian will cover an NRI’s assets abroad?

An Indian will can express the intention to cover foreign assets, but it does not automatically operate in foreign countries without a validation or probate process in each relevant jurisdiction. In practice, the financial institutions in each country require locally valid documentation. A will written under Indian law for UK assets, for example, needs to go through the UK probate process and may not meet all UK legal requirements. Most NRI planners recommend a separate will for Indian assets and a separate will (or wills) for assets in each foreign country.

Can an NRI heir in Dubai repatriate money from an inherited NRE account?

Yes. NRE account proceeds (savings and FD) can be transmitted to an NRI heir and are fully repatriable to their overseas account. The bank requires a death certificate, succession proof (will and probate, legal heir certificate, or succession certificate depending on the situation), nominee identification, and standard KYC. The NRI heir receives the funds in their NRE account and can repatriate to their overseas account without limit. The process typically takes 4 to 12 weeks depending on the documentation and the bank.

What is the difference between a nominee and a legal heir for an NRI’s Indian account?

A nominee is the person designated to receive the asset from the bank or institution on the account holder’s death. The nominee collects the asset as a custodian. The legal heir is determined by the will or by applicable succession law. In India, the nominee does not become the final owner of the asset: they must distribute it to the legal heirs as specified in the will. For NRIs, it is important to ensure the nominee and the intended beneficiary under the will are aligned, or that the nominee understands their obligation to distribute.

Can an NRI inherit agricultural land in India?

Yes. NRIs can inherit agricultural land in India even though they cannot purchase it directly (FEMA prohibits NRIs from buying agricultural land). If an NRI inherits agricultural land by bequest or succession, they can hold it. However, if they want to sell the land and repatriate the proceeds, they must follow FEMA guidelines, which may include specific conditions and RBI reporting requirements depending on the value and circumstances. Engage an FEMA specialist for the specific transaction.

Do NRIs need two wills, one for India and one for abroad?

It is the most practical approach for NRIs with assets in multiple countries. A single will purporting to cover all global assets creates administrative complexity and legal uncertainty in each foreign jurisdiction where it needs to be used. Separate wills for each jurisdiction where significant assets are held (India, UAE, UK, US) allow each country’s legal process to proceed independently. Each will must clearly state which jurisdiction’s assets it covers and must not revoke the others.

What happens to an NRI’s Indian assets if they die without a will?

Indian assets pass under the personal law applicable to the NRI’s religion, following Indian intestate succession rules. For Hindus: the Hindu Succession Act, 1956, which specifies a priority order of heirs. For Muslims: Shariat rules apply. For Christians and Parsis: the Indian Succession Act, 1925. The distribution may not reflect the NRI’s actual wishes, particularly for complex asset situations. The process requires a succession certificate from an Indian court, which adds time and cost compared to a clear will.

Can a family trust help NRIs manage assets across multiple countries?

Yes, within limits. An Indian private family trust can hold India-linked assets (shares, mutual funds, FDs, Indian property) and provide clear succession rules for those assets without probate on the settlor’s death. However, a domestic Indian trust does not easily extend to holding foreign assets in the UAE or US due to FEMA and foreign tax laws in those jurisdictions. NRIs with assets across multiple countries often use a combination of structures: an Indian family trust for India-linked assets, and appropriate trust or estate vehicles in each foreign jurisdiction for those assets.

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