Common Inheritance Planning Techniques That NRIs Can Use

 

The number of NRIs (Non-Resident Indians) has grown significantly in the past few years. This has made various NRIs become concerned about estate planning and succession planning. There are various cross-border tax laws and other kinds of laws that they have to comply with, making the processes and transfer of funds for NRIs even more complex. Thus, proper estate planning is very important for NRIs, or they might incur hefty fines from both countries involved.

In the following blog, we are going to explain the different estate planning techniques that NRIs can use.

Creating a Will

One of the most basic things you can do as an NRI is to create a legally valid will. It will allow you to clarify your heirs and how you wish to divide your assets that are located in India.

Setting up a Private Trust

Setting up a private trust or investing in private trusts for NRIs provides an alternative to making a will. This can be easily done with the help of a lawyer, and all the key individuals, like settlors, trustees, and beneficiaries, can be clearly defined.

Getting a Probate

A probate is the process of establishing the legitimacy of your will. It authorises the authority of its execution and can be obtained from a competent court. Wills made through foreign courts may also be recognised, but it is advisable to consult a financial & wealth management firm in India before creating such a will.

Investing through Nominations

As an NRI, you can also use nominations when investing in assets, such as insurance policies, mutual funds, bank accounts, and fixed deposits. After your passing, the claims of the nominees are accelerated, and the transferring of assets happens smoothly.

Preventing Double Taxation

Double taxation can happen if, after your passing, you are taxed twice, in the country of residence as well as India. You can avoid this by carefully planning and checking if both countries provide relief on it.

Conclusion

The best way to avoid fines, save time, and prevent complexities is to hire a private financial planning firm like Ashutosh Financial Services Pvt Ltd. They have immense experience in this industry and have handled hundreds of clients around the world.