While including your U.S. or foreign assets in an Indian Will maybe a convenient way to keep your estate plans organized and efficient, are they as easy to organize and manage as you think? Cross-Border Estate Planning can be very challenging due to a complex web of varied laws, tax implications, and jurisdictional issues that differ widely from country to country. Regardless of whether you are a globe-trotting NRI that has assets and/or investments all over the world or someone who has acquired some property/other assets in another country, it is imperative to know how to properly safeguard your legacy effectively. Let’s unpack the realities of planning your estate across borders—without the stress or legal surprises—and find out how to make your international assets part of a seamless legacy plan.

Understanding Cross-Border Estate Planning

Imagine owning a property in Mumbai, an apartment in New York City, and a mutual fund in Singapore; now imagine wanting to make sure that all of your foreign assets are passed down to whom you want them to go when you die. However, there is one catch that every country has its own inheritance rules and tax laws, along with its own probate processes. 

The Indian Succession Act, 1925, governs Wills for assets located within India, but it does not extend its jurisdiction to assets held abroad. International estate law is influenced by domestic laws and global conventions such as The Hague Convention XI, which aims to standardize the recognition of Wills across borders but does not supersede each country’s substantive inheritance laws. Thus, while international frameworks facilitate recognition, the distribution of assets ultimately depends on the laws of each respective jurisdiction.

Can Your Foreign Assets Be Mentioned In An Indian Will?

Here's the million-dollar question: “Can I include my US home or my UK bank account in my Indian Will?” The answer to this question is yes; legally, you can reference your foreign assets within your Indian Will, and it may be given some recognition under International Treaties such as The Hague Convention XI if your Indian Will complies with the required formalities. 

However, Indian courts lack jurisdiction over immovable property or bank accounts that are situated outside India; a Will made in any foreign country has to be enforced in conformity with the local laws of that country in which the property or the assets are located. E.g., an NRI resident of Pune who had added a US home to his Indian Will subsequently discovered that US probate law mandates a separate Will to be drafted in compliance with the legal requirements of the US and other formalities. 

Thus, mentioning foreign assets in an Indian Will can serve as evidence of intent, but the actual transfer of foreign assets generally demands a valid Will executed in accordance with the laws of the respective country.

Why You Need Separate Wills

Every nation has its own estate planning laws and requirements. It is recommended by legal professionals and reputable sources that you create an individual Will for each country in which you hold assets. In most countries, if you are holding assets locally, they generally require a local Will to be drafted, as well as naming local executors and compliance with local Estate Tax laws. An NRI should draft a distinct Indian Will for the assets in India to minimize potential probate delays or recognition issues with respect to foreign Wills. Each Will must contain a clear statement disclaiming that they do not cancel out other Wills so that there is no unintended invalidation or conflict between them. This simplifies the administration of international estates and reduces the complexities for your heirs.

Real-Life Compliance & Practical Tips

Have you ever wondered what all can go wrong if your foreign assets fail to reach your loved ones as planned?

• Always declare all your foreign assets in tax filings to avoid severe and hefty penalties under foreign estate tax laws and India’s Black Money (Undisclosed Foreign Income and Assets) Act, 2015.

• Prepare separate Wills (one for Indian assets and one for foreign assets), as one Will cannot be enforced across different jurisdictions, and may complicate the process of probate in either of the countries.

• Appoint local executors for each Will to ensure easy and smooth administration, and compliance with regional laws where assets are located.

• Review your Wills regularly and update them as necessary due to new developments in tax legislation and/or changes in your family circumstances to avoid unintended legal consequences.

• For Indian residents, assets of Hindus, Buddhists, Sikhs, or Jains are governed by the Indian Succession Act, 1925, and Muslims follow their personal laws; while movable property abroad is subject to the law of domicile.

AasaanWill — The Connection Between Them All

Feeling confused or overwhelmed when drafting a Will, and Need Help? Services provided by professional platforms like AasaanWill can be very helpful. AasaanWill offers NRI-friendly Will-drafting service and secure Will storage services. 

However, when preparing a Will that includes foreign assets or properties, it is often recommended to consult local legal counsel or an estate planning professional in a jurisdiction where foreign property and/or foreign assets are located, so you may comply with all requirements of that jurisdiction's applicable law and formalities.

A well-established service like AasaanWill makes it relatively simple for Non-Resident Indians (NRIs) to organize and maintain the succession of their Indian assets as an orderly process; however, it is still important that you comply with all the laws of the countries in which your overseas assets are located so that you have proper estate planning.

Your Must-Know FAQs

Q1: Can I mention my US assets in an Indian Will? A: ​Yes, you can mention foreign assets, but an Indian Will cannot govern them legally. Enforcement depends on the laws of the country where the assets are located, which usually require a local Will.

Q2: How do I ensure my US assets go to my chosen heirs? A: Draft a separate Will in the US, following local laws. You may reference your Indian Will for clarity, but enforceability depends on US rules and regulations.

Q3: Can I unify all my assets under one Will? A: It's generally not practical. Due to differing succession laws, having separate Wills (one Indian and one foreign) with clear disclaimers that they don't revoke each other reduces conflicts and eases administration.​

Wrapping Up: What is Your Next Action

Confused about which one of your assets will fall under each Will? Overwhelmed by the different complexities of tax laws and paperwork? The best solution for you will be to have country-specific Wills that need to be reviewed and updated anytime you add new assets or there is a change in your situation. When it comes to your personal assets, AasaanWill provides a simple platform for creating a Legally Valid Will at an affordable price, so you can have peace of mind knowing you have the security of a simplified Will process. The idea of Cross Border Estate Planning may be confusing, but with the right approach, you can confidently protect your global legacy.