Things to Keep in Mind for an NRI to Inherit Assets in India

Inheritance and succession can be defined as transferring the assets owned by a deceased person to his heirs or intended beneficiaries.

There are two ways by which an NRI can inherit an immovable property in India: By means of testamentary disposition or valid Will and through the laws of intestate succession.

Laws of intestate succession states that when a person passes away without writing a valid Will and the property is inherited as per the relevant succession laws in India, the intestate succession is governed by succession laws applicable to the relevant community in India. For example, Hindu Succession Act, 1956, applied to Hindus, Sikhs, Jains and Buddhists, Indian Succession Act, 1925 is applicable to all Indian citizens except Hindus, Sikhs, Jains, and Muslims. The relevant codified laws define the legal heirs based on their relationship with the deceased.

Immovable properties inherited by NRIs are residential properties such as apartments, houses etc. commercial properties such as office spaces, shops, and commercial buildings and agricultural lands. When it comes to agricultural lands an NRI is restricted from purchasing an agricultural land, but there is no such restriction when it comes to inheriting one.

Though there are no restrictions as to from whom the NRI inherits the property, a property if inherited from a non-resident are subject to certain conditions such as Foreign Exchange Management Act (FEMA).

Legal Procedures for Transfer of Assets

• Testamentary Succession/ via Will: If the property is bequeathed through a Will, then it is essential to ensure the validity of the Will.
• Intestate Succession: When it comes to succession without a Will, documents such a legal heirship certificate, succession certificate etc. may be required.
  
• Other documents such as original Will, death certificate of the deceased, legal heir certificate, title deeds, and it is essential to register the inherited property to the name of the NRI and mutate the property records to validate the new ownership.
  
• Apart from the above-mentioned documents, NOC/Non-Objection Certificates may be required from other legal heirs, in case if the Will is found to be invalid or as procedurally required.