I am a Hindu non-resident Indian (NRI) based in the UK, living with my husband. We have no children, and the rest of our family and relatives reside in India. My husband and I are in the process of drafting our wills, which involve assets in both the UK and India. How can we ensure that our wills are legally valid in both jurisdictions? Are there specific requirements for an NRI’s will to be valid in India?
—Name withheld on request
We assume that you are both Hindus and have movable and immovable properties located in the UK and India.
Given that neither of you has Class-I legal heirs other than each other, you may consider drafting a ‘mutual will’ that bequeaths all assets to the surviving spouse or creating two separate wills that designate each other as primary beneficiaries. After the demise of both, the assets can pass to other beneficiaries of your choice.
We recommend creating two separate wills for clarity and compliance: one for properties located in India, following Indian laws, and another for assets in the UK, adhering to local legal requirements.
There are no restrictions on bequeathing your assets, whether movable or immovable, to relatives residing in India.
Additionally, you should consider the inheritance tax applicable in the UK, including the thresholds for its applicability, when preparing your respective wills to ensure efficient tax planning.
I have solely inherited a family-owned property that has an outstanding mortgage. Who is responsible for repaying the mortgage?
—Name withheld on request
As the sole beneficiary of an inherited immovable property, you are now its absolute legal owner. This ownership grants you all associated rights but also transfers the obligations and liabilities attached to the property.
Since the deceased owner had mortgaged the property to secure financial aid, you effectively step into their shoes. Consequently, you are responsible for repaying the outstanding mortgage to clear the liability and establish full ownership of the property.
Aradhana Bhansali is a partner at Rajani Associates