How can NRIs deal with inherited property

How can NRIs deal with Inherited Property?

If NRIs have acquired immovable property in India by the way of purchase or inheritance, they have to take care of the rules and regulations and the laws, which are applicable on property. Under the Section 6 (3), (4), (5) of the FEMA, 1999 empowers RBI to make regulations from time to time for governing this. The Income Tax laws are also to be taken care by paying proper tax for the properties otherwise it becomes difficult for NRIs to maintain that property it will be feasible to sell it.

In order to avoid complications and smooth transfer of assets to their legal heirs (Family) one should have an estate plan in place. In today’s blog we will be talking about Inheritance of property, especially by NRIs.

NRIs can inherit the property in:

1) During the lifetime of the owner of the property

2) After the lifetime of the owner of the property

During Lifetime of the Owner of the Property: The property can be inherited

 Through a gift deed

 Partition of HUF (in case the property is owned by HUF)

 By becoming a beneficiary of a Family (Private) Trust

 Family arrangement

After the Lifetime of the Owner of the Property:

 Application of Succession Act (Hindu Succession Act in case of Hindus)

 Through a Will

 Family arrangement

 If one or more legal heirs signs a relinquishment Deed in favour of the person in whose name title has to be transferred

Depending on how one is inheriting the property the documents required for transfer of title of the property may differ. The documents required for transfer of property during the lifetime of the owner of the property are:

 Original title documents of the property

 Gift Deed/ Family agreement/ Partition Deed/ Trust Deed

 KYC Documents

The inheritor has to go along with above-mentioned original documents and after paying stamp duty can get the property transferred in their name.On the other hand of the property is being inherited and transferred after the death of the owner of the property then the documents required will depend on. Whether the owner of the property had a Will or he died intestate. Depending on the location or residency of the deceased a Probate of the Will may be required.

Some of the documents required for transfer of title are:

 Death Certificate

 Original Will (or notarized copy of the Will). In case of intestate death , Succession certificate will be required

 Probate of the Will

 Title documents of the property

 Relinquishment deed (in case some legal heirs want to give their share of the property to another legal heir)

 Encumbrance Certificate

 Khata

After the property is registered mutation of the property may also be required. Transfer of title of the inherited property is a complicated process and may involve court process too. Therefore, it is advisable that one takes the professional help.

We at Global Indian Solutions can help you in getting the Property title transferred.


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