The Importance Of A Will For Nri’s

For Non-Resident Indians (NRIs), creating a Will is more than just a legal formality; it is a strategic decision that safeguards one’s assets, ensures the right beneficiaries, and minimizes cross-border legal complexities. As NRIs often have properties, investments, and assets in both India and abroad, a well-crafted Will can prevent the pitfalls of complex inheritance laws across different countries and safeguard one’s legacy.

Here is why a Will is essential for NRIs and how it protects both the assets and intentions of the individual.

Country-Specific Succession Laws and Their Impact on NRIs

Inheritance and succession laws are heavily influenced by the country in which they are applied. For NRIs, this often means navigating multiple legal systems that govern how assets are distributed after death.

Indian Succession Act, 1925 and Portuguese Civil Code, 1867

The Indian Succession Act, 1925, provides a uniform framework for inheritance. Goa is the only state in India with a Uniform Civil Code (UCC) that applies to people of all religions. Laws: The UCC in Goa is based on the Portuguese Civil Code of 1867, which covers topics such as marriage, divorce, property, and succession. It promotes equality by establishing equal rights for men and women, including equal division of property and income between spouses and children. The UCC in Goa has been in place for many years and is considered progressive and non-discriminatory by many Goans. However this many not be the same in the other parts of the country.
In the absence of a Will, assets are distributed based on these laws, which may not align with the NRI’s wishes. A Will ensures the persons wishes are honoured rather than being subject to default legal frameworks.

Why Having a Will in India is Preferable to Having Only a Foreign Will

Creating a Will in India, especially for Indian assets, can greatly simplify inheritance for family members. Here’s why:

• Recognition of Indian Assets: If an NRI has a Will created only in a foreign country, there could be challenges in getting it recognized in India, as different countries have unique rules and notarization requirements. Indian assets are best managed under a Will drafted in India, ensuring that local legal standards are met and avoid potential hurdles in Indian probate courts.
• Cross-Border Inheritance Laws: Cross-border inheritance issues arise when a Will created in one country needs to be enforced in another. By having an Indian Will, the individual’s Indian assets can bypass this complex process, reducing the risk of misinterpretation or misapplication of inheritance laws in India.
• Streamlined Probate Process: The Indian probate process can be streamlined when an Indian Will exists. This reduces both the legal and financial burden on family members, as well as potential delays in distributing assets.

Safeguarding Your Legacy with a Well-Crafted Will

A Will provides a reliable way to secure and manage your legacy, detailing how your assets will be distributed. This is especially important for NRIs with diverse, multi-jurisdictional assets. A well-structured Will can:
Protect Personal Wishes: Without a Will, the distribution of assets is subject to default inheritance laws, which may contradict personal desires. A Will ensures that your intentions are documented clearly, guaranteeing that assets reach the intended beneficiaries.
Appoint Guardians for Minor Children: For NRIs with minor children, a Will allows for the appointment of a guardian. This critical detail prevents lengthy court processes and ensures the children’s care is entrusted to a preferred individual, offering peace of mind.
Specify Unique Family or Cultural Requirements: A Will allows NRIs to incorporate cultural or familial customs into their legacy, ensuring that personal traditions and values are honoured even after their passing.

Reasons Every NRI Should Write a Will

• Comprehensive Record of Assets: For NRIs with assets across various locations, a Will can serve as a comprehensive record that outlines all properties, investments, and valuables. This is crucial, as family members may not be aware of the full extent of an NRI’s assets, especially those held internationally.
• Reduction of Complexity for Family Members: Without a clear Will, the family could face legal complications and administrative burdens in attempting to gather and distribute assets across borders. By outlining clear instructions in a Will, an NRI simplifies the entire process, reducing emotional and logistical stress.
• Minimizing Family Disputes: A Will minimizes the likelihood of disputes over assets, as it clearly defines who will inherit what. This is particularly helpful for NRIs with family members residing in different countries, as it eliminates confusion and prevents potential disagreements.
• Avoiding Unintended Inheritance Due to Succession Laws: Indian succession laws are based on religion, and without a Will, the laws determine asset distribution. For example, under the Hindu Succession Act, assets may be distributed among legal heirs differently than one might intend. A Will allows an NRI to control who inherits their wealth, ensuring it aligns with their personal wishes. (However as stated above, Goa follows the UCC)

When do you Create a Will?

Creating a will is an essential part of financial and estate planning, and there is no “wrong” time neither “too early” to create one. It’s better to have one and update it than to have none at all. Life is unpredictable, and having a will ensures your assets and responsibilities are managed according to your wishes, no matter what happens. Even if you have limited assets or feel young, having a will can prevent future issues, provide clarity, and make things easier for those close to you.

Consequences of Dying Intestate (Without a Will)

Without a Will, the legal complexities multiply, especially for NRIs with assets in multiple countries. In such cases, Assets in India would be distributed according to Indian succession laws which may not reflect the deceased’s wishes. Different countries may claim jurisdiction over the assets, leading to potential conflicts and delays. In some cases, assets may even become inaccessible or incur unexpected tax liabilities. Families often face increased legal fees and lengthy court procedures to access assets, which can be financially and emotionally taxing.

Conclusion

For NRIs, a Will is far more than a legal document; it is a safeguard that respects their intentions, simplifies inheritance, and reduces cross-border complications for loved ones. Given the complexity of multiple jurisdictions and diverse succession laws, a well-crafted Will offers clarity, security, and control, ensuring that an NRI’s legacy is passed on seamlessly. By taking the time to prepare an Indian Will, NRIs can ensure their assets are protected and that their loved ones are spared unnecessary legal battles and burdens.

Crafting a Will is a proactive step every NRI should consider, securing both their legacy and their family’s peace of mind.