Trump’s Big Beautiful Bill: What It Means for US-Based NRIs – And Why Estate Planning Matters

President Trump’s much talked about “Big Beautiful Bill” has created ripples for U.S.-based NRIs. While headlines focus on remittances, the bill also indirectly raises questions of how NRIs transfer, invest, and eventually pass on wealth to family in India.

The New 1% Remittance Tax

Starting January 1, 2026, any cash-based transfer to India will attract a 1% levy.

• Only cash transfers are affected.

• Bank and card-based transfers are exempt.

• The sender bears the cost.

If you’re planning a large transfer for family property purchase, a gift, or long-term investments, complete it before the 2025 year-end.

Rental Income and Property Sales – Still Business as Usual

For NRIs with rental income in India:

• You must declare it in U.S. filings.

• Use DTAA credits to avoid double taxation.

For property sales:

• Capital gains are taxed in both countries, but DTAA provides relief.

• Post-2026, cash repatriation attracts the 1% remittance tax, so bank-to-bank channels are preferable.

Why This Links Back to Wills and Gift Deeds

The Trump bill is a reminder: sending money home will become costlier and more regulated. That makes structured succession planning even more important.

• Gift Deeds: If you plan to transfer property or money to children in India, a registered Gift Deed may be a more tax-efficient and one-time option instead of repeated remittances.

• Wills: A registered Will in India ensures your family doesn’t face probate delays or cross-border disputes. With changing tax costs, a Will can also save heirs from unnecessary expenses when inheriting Indian assets.

Practical Scenarios

• Raj, based in New Jersey, plans to send $200,000 to his son in India for a house down payment. If he waits until 2026 and uses a cash channel, he pays $2,000 extra in remittance tax. Instead, Raj could transfer before 2026, use a bank transfer, or structure the transfer via a Gift Deed to secure long-term ownership for his son.

• Meera, living in California, owns an apartment in Hyderabad. If she sells in 2026 and cash-repatriates, she loses 1% to remittance tax. By preparing a Will, she could let her daughter inherit directly in India, avoiding repetitive transfers altogether.

Action Plan for US-Based NRIs

1. Before 2026:

• Complete large cash remittances.

• Plan property sales or settlements in advance.

2. Long-Term:

• Use bank or card transfers to remain exempt.

• Register a Gift Deed for significant one-time asset transfers.

• Draft a Will in India to ensure family receives assets without cross-border hassles.

3. With Experts:

• Work with advisors who understand both U.S. and Indian tax laws.

• Structure inheritance through Wills and Gift Deeds to minimize costs and disputes.

Conclusion

Trump’s bill is not just about a 1% tax—it’s a wake-up call. For U.S.-based NRIs, the real question is not only how to send money but also how to preserve and pass it on efficiently.

Whether through timely remittances, a Gift Deed, or a registered Will, the choices you make in 2025 can save your family both money and stress in the years ahead.