Indian and UAE Will Planning for NRIs Owning Assets in Both Countries

If you live in the UAE and have a home, savings, and investments there, you're likely in a common situation. But what if you live there but hold ancestral land or property in India? Well, in this situation, UAE will planning for NRIs becomes difficult. This is because both countries have different inheritance and succession laws.

In both India and the UAE, the location of immovable property is an important factor in determining the applicable rules, but the applicable succession and conflict-of-law rules can also matter. In this situation, creating a single will and listing global assets in it can create practical issues in administration. Also, the inheritance and succession laws of both countries can conflict.

So what should you do in this situation? Quick answer: prepare two separate wills in both countries. But does this apply to everyone? Confused? Want to know about proper UAE and Indian will planning for NRIs? Read the blog and get your answers.

Do NRIs Need Separate Wills for India and the UAE?

Although it is not compulsory, it can be advisable for NRIs to hold separate wills for India and the UAE assets. This is because both countries have different inheritance, succession, probate, and estate administration processes. Further, the correct structure depends on:

• Location of the asset
• Asset type and value
• Religion and legal status of the testator
• Applicable succession laws
• Family circumstances
• Probate and administration needs
• Already had a global will

In addition, as an NRI, you can also consider either of the two options:

Option 1: One Worldwide Will

Mention all your assets in India, the UAE, and other countries in a single will. Although it looks simple to manage, it can create practical issues. This is because each country has its own probate requirements and inheritance laws. You may also need to authenticate or translate documents in one country. This can further delay access to property, bank accounts, and investments.

Option 2: Separate Wills

In a separate will, you can list your Indian assets in an Indian will, UAE assets in a UAE will, and assets in other countries in separate wills. Separate wills can make administration easier, as each will can be drafted for the relevant assets and jurisdiction. However, you must coordinate the documents carefully. In addition, if the language is not proper, you may risk unintended revocation.

So, rather than making assumptions, choose the option that better fits your situation. Additionally, before deciding on the will option, prepare a list of the following:

• UAE assets
• Indian assets
• Nominated accounts
• Jointly held accounts
• Existing wills
• Loans and other liabilities
• Intended beneficiaries
• Location of original documents

Also, when drafting a will for Indian property while living in the UAE, consider how Indian beneficiaries will claim their assets. For a better idea of it, you can also consider the points stated in Indian will planning for NRIs. Now, moving ahead, let's determine which assets each will should cover.

Which Assets Should Each Will Cover?

If you are making separate wills for Indian and UAE assets, clearly identify the territorial and asset scope.

• An Indian will contains the following things:
• Residential and commercial property in India
• Indian bank accounts and fixed deposits
• Demat accounts
• Shares and mutual funds
• Agricultural land inherited by the NRI
• Business ownership in India
• Jewelry or valuables kept in India
• Other India-based movable assets
• A UAE will contains the following things:
• Property located in the UAE
• UAE bank accounts
• Business or company interests
• Digital assets
• Vehicles and valuables kept in the UAE
• Eligible insurance or employment-related amounts
• Other assets situated or administered in the UAE

Further, classification is not always simple. For instance, you may hold an investment in India, but operate it from the UAE. In this scenario, when mentioning this investment in the will, consider its location, governing documents, and ownership structure.

In addition, you also need to review the joint ownership of an asset or account separately. This is because you did not necessarily get the asset simply by being a surviving joint owner. The ownership depends on the account terms and applicable laws.

Apart from this, do not treat the nomination as a substitute for estate planning. A nominee may be authorized to receive or claim an asset from a financial institution, but the final ownership or succession rights depend on the applicable succession law and account or policy terms. So, coordinate your will with your succession planning and nomination.

Also, instead of listing all your assets in the general description of each will, include a schedule of the relevant assets.

This was all about what assets you need to mention in wills in the UAE and India. Now, moving forward, let's learn how to coordinate Indian and UAE wills.

How to Coordinate Indian and UAE Wills?

Here is how you can coordinate your Indian and UAE wills:

• Each will should clearly define the jurisdiction and assets it covers
• Check whether any will exists
• One will should not unintentionally overlap or conflict with the other will
• Clearly define the executors
• Situation where a beneficiary dies first
• Clearly mention the beneficiaries of the specified assets
• Payment of debts and estate expenses

Also, a general statement saying the document revokes all previous wills may unknowingly cancel your drafted will in another country. So limit the revocation clause to your previous will only.

For instance, an Indian will can be drafted to apply to the assets and investments you hold in India, while the UAE will can be drafted for the assets within its intended scope. In addition, both wills should contain consistent scope and revocation clauses.

Apart from this, when drafting a will in India and the UAE, consider the following details to be mentioned the same:

• Your full legal name
• Passport details
• Nationality
• Marital status
• Name of your spouse and children, or whom you want to transfer your assets to
• Beneficiary details
• Detailed explanation of the overall estate plan

Further, different name spellings, conflicting descriptions, or an outdated passport can create issues. Also, don't copy your Indian will and replace it with a UAE will by changing the name. This is because each country has its own laws and procedures. An Indian will must comply with the applicable Indian succession and will-execution requirements, while a UAE will must comply with the applicable UAE law and the requirements of the relevant will-registration service or court, such as the Abu Dhabi Judicial Department (ADJD) where applicable.

This is how you can coordinate Indian and UAE wills. With proper Indian and UAE will planning for NRIs, you can overcome this issue. Moving further, let's talk about choosing executors and beneficiaries.

Choosing Executors and Beneficiaries

An executor helps in managing your will. Generally, that person is responsible for taking the necessary steps to administer the estate, including applying for probate or other required legal processes where applicable. With this in mind, instead of appointing one executor for both wills (India and UAE), you may appoint separate executors depending on the circumstances.

For your Indian will, choose someone familiar with Indian regulations, laws, banks, and property. For the UAE will, choose someone familiar with UAE laws, property, local authorities, courts, and employers. Also, when appointing two executors, clearly define their roles. This is because if they need to exchange documents, they should not contradict the will's instructions.

Additionally, when appointing executors in both countries for your will, consider:

• Age and health of the person
• Reliability
• Country of residence
• Ability to manage paperwork
• Willingness to accept the role
• Relationship with the beneficiaries
• In case family disagreements arise, ability to remain neutral
• Ability to maintain proper financial records
• Whether he/she handles matters in India effectively
• Familiarity with the location of major assets

You should also appoint an alternative executor if the appointed person refuses to perform their duty.

When discussing the beneficiary, include their full details. This includes:

• Complete name
• Relationship with the testator
• Identifying information
• Share or asset they are intended to receive

If a minor is a beneficiary, the will should address guardianship and management of their assets. Also, if you mention guardianship, review how it's implemented in both countries.

So, this is how you can appoint an executor and mention a beneficiary in your will. Moving ahead, let's cover signing and validating the will.

Signing and Validating the Wills

Even if your will contains clear wishes and meets the proper jurisdiction requirements, it can still create issues if it lacks your signature or required witnesses. When drafting a will in India, the applicable execution requirements generally include signing and attestation by two or more witnesses.

Although it is optional to register a will in India, it is generally advisable to do so. Further, if you sign your Indian will abroad, the document may require notarization, attestation, or apostille depending on the document, purpose, and authority involved. Apostille is handled through the applicable competent authority in accordance with the applicable process, rather than through the Indian Embassy. For a detailed overview, read our blog on registering a will in India for NRIs.

When drafting a will in the UAE, follow the UAE structure and registration requirements. Will registration requirements may differ by emirate, will-registration service, or court. So consider UAE will planning for NRIs when drafting a will there. You may also need to submit identification documents, beneficiary details, and asset details with the will. Also, keep original copies of your will securely.

This was all about signing and validating the wills. Moving further, let's know how to avoid conflicts between Indian and UAE wills.

Avoiding Conflicts Between Indian and UAE Wills

The key step to avoid conflicts between Indian and UAE wills is drafting them properly. This can be avoided if:

• Each will clearly states it applies to the assets located in a particular country.
• One will should not unintentionally override or invalidate the other
• Clearly define the responsibilities of the executors in both wills

Poorly drafted wills unintentionally create the following issues:

• Giving the same assets to different beneficiaries
• Current will revoking all the past wills
• Different executors controlling the same asset
• Same asset described in two wills
• One will covering global assets while the other mentioning only UAE assets
• Inconsistent ownership details
• Containing different instructions for paying debts

Also review the asset schedules in both wills together. For instance, if you sold your Indian property and transferred the amount to your UAE account, that asset may no longer need to be mentioned in its previous form in your Indian will.

So this is how you can avoid conflicts between Indian and UAE wills. Moving forward, let's know when NRIs should review or update their wills.

When Should NRIs Review Their Wills?

You should review your will in the following situations:

• Marriage
• Divorce
• Childbirth
• Death of a beneficiary
• Acquisition of new property
• Changes in tax laws or succession laws
• Returning permanently to India
• Starting or selling a business
• Change in residency or citizenship
• Creating a trust or family arrangement

If laws change or you sell or buy assets, you should review and, where necessary, update your will promptly. To do so, you may need to replace the existing will or make another legally valid amendment, depending on the applicable law and will structure. You should not make informal handwritten edits to the existing will unless they comply with the applicable legal requirements. Whenever you amend one will, check the other will for consistency. The updated will should contain the appropriate revocation language.

Additionally, reviewing a will does not mean making changes. It confirms that the will still reflects the same assets, intended distributions, and family circumstances.

Final Thoughts

Lastly, making a will is not only a legal formality; it is an essential step toward the family's financial security. NRIs holding assets in India and the UAE need proper estate planning that operates across both nations. In this, India and UAE will planning for NRIs is a crucial step. It can provide greater clarity and help with estate administration, subject to applicable law. Whether you create one or two separate wills depends on your circumstances, financial situation, and assets.

For any further assistance with UAE and Indian will planning for NRIs, connect with Savetaxs. Our team of financial experts helps you with proper estate planning and choosing the right will option for your financial situation. In addition, our experts stay up to date with evolving property laws and regulatory requirements in both countries, ensuring complete accuracy.