Retirement & Estate Planning for NRIs

Last week, Rajesh from our Belong community shared a heartbreaking story. His father passed away in Mumbai while Rajesh was working in Dubai. 

His father owned two flats worth ₹3 crore, ₹50 lakh in mutual funds, and ₹30 lakh in fixed deposits.

There was no will.

Rajesh flew to India expecting to handle everything in a week. Six months later, he's still fighting in court. His uncles claim a share citing Hindu Succession Act. 

The bank won't release FDs without a succession certificate. The court process costs ₹15 lakh. His family savings are frozen.

"I thought property automatically goes to children," Rajesh told us. "Nobody warned me what happens without a will."

He's not alone. According to investment banker Sarthak Ahuja, thousands of NRIs lose crores every year because their parents didn't leave a registered will. The succession certificate process takes 6-18 months, costs ₹10-20 lakh (including 3% court fees on estate value in Delhi), and requires apostilled foreign documents, multiple affidavits, and powers of attorney.

At Belong, we've seen this pattern repeatedly. Smart, successful professionals who've built wealth across two countries-yet haven't done basic estate planning. 

Why? Because nobody explains what actually happens when you die with assets split between India and the UAE.

This guide covers everything you need to know about retirement and estate planning as an NRI: will requirements in both countries, succession laws by religion, inheritance tax implications, repatriation rules, retirement corpus planning, and how to structure assets to avoid family disputes and maximize wealth transfer.

Think of this as the financial conversation you'd have with us over coffee-honest, comprehensive, and actionable.

Why Estate Planning Can't Wait (The Real Cost of Delay)

You might think, "I'll do this next year" or "I'm only 35, plenty of time."

Here's what actually happens when you delay:

Without a will in India:

  • Assets distributed per religious succession laws (not your wishes)
  • Succession certificate takes 6-18 months
  • Court fees: 2-4% of estate value
  • Lawyer fees: another 2-5%
  • Family disputes drag on for years
  • Agricultural land, property, bank accounts frozen

Without a will in UAE:

  • Sharia law may apply (even to non-Muslims in some cases)
  • Your assets could be distributed contrary to your wishes
  • Custody of minor children decided by UAE courts
  • Lengthy probate process
  • Bank accounts frozen until legal heir determination

The emotional cost: Your family, already grieving, must navigate complex legal systems across two countries while money is locked up.

👉 Tip: If you have assets worth over ₹50 lakh in India OR any property in UAE, estate planning should be done immediately. Not next year. This month.

Let's start with where you currently live-the UAE.

How UAE Inheritance Laws Work

The UAE's inheritance framework is unique. It blends Islamic Sharia law with provisions for non-Muslims.

For Muslims:

  • Sharia inheritance rules apply automatically
  • Fixed shares for heirs based on relationship (wife gets 1/8, daughter gets 1/2, etc.)
  • Wills can distribute only up to 1/3 of estate; remaining 2/3 distributed per Sharia
  • Non-Muslims cannot inherit from Muslims

For Non-Muslims:

  • UAE Civil Code Article 17(1) states: "Inheritance shall be governed by the law of the deceased at the time of his death"
  • You can opt for your home country law (Indian law) to apply
  • Federal Decree-Law No. 41 of 2022 provides default civil framework for non-Muslims who die intestate
  • For movable assets (bank accounts, investments, cars): Home country law applies
  • For immovable property in UAE (real estate): UAE law applies unless specified in registered will

The Complication: If you die without a will in UAE, even as a non-Muslim, local authorities intervene. Your assets may be frozen. Custody of minor children gets decided by UAE courts which might not align with your wishes.

UAE Will Options for NRIs

You have three main options:

1. DIFC Wills Service (Dubai)

  • Established 2015
  • Covers assets in Dubai (and increasingly recognized in other Emirates)
  • Allows you to distribute assets per your wishes
  • Recognize guardianship appointments for minor children
  • English-language, common-law based
  • Cost: AED 10,000-15,000 typically
  • Fast probate process

2. ADGM Wills (Abu Dhabi)

  • Similar to DIFC
  • Covers Abu Dhabi assets
  • Also follows common law principles

3. UAE Courts Will

  • Register will with UAE notary public
  • Must be translated to Arabic
  • Subject to potential Sharia interpretation for immovable property
  • Less predictable outcome

Our recommendation for most NRIs: DIFC Wills if you have significant UAE assets. The cost is worth the peace of mind and certainty.

Critical for parents: Without a registered will appointing guardians, UAE authorities may appoint guardians for your minor children-possibly not the person you'd choose.

Understanding India's Succession Framework

While you live in UAE, your parents likely own property in India. You might own inherited property, investments, or bank accounts. Understanding Indian succession laws is crucial.

Two Routes to Inheritance in India

1. Testamentary Succession (With a Will)

  • Deceased left a valid will naming beneficiaries
  • Straightforward: will gets executed per wishes
  • In Mumbai, Kolkata, Chennai: Must obtain probate (court validation)
  • Other cities: Probate optional but recommended
  • Executor distributes assets as specified

2. Intestate Succession (Without a Will)

Hindu Succession Act: Who Inherits What

For Hindu male who dies intestate, property devolves in this order:

Class I Heirs (first priority):

  • Widow
  • Sons and daughters (equal shares-daughters got equal rights after 2005 amendment)
  • Mother
  • Widow of predeceased son
  • Children of predeceased son/daughter

Class II Heirs (if no Class I):

  • Father
  • Brothers and sisters
  • Children of predeceased siblings

Agnates (if no Class I or II):

  • Blood relatives through males (cousin from father's side)

Cognates (if no agnates):

  • Blood relatives not wholly through males (cousin from mother's side)

For Hindu female who dies intestate, rules differ slightly-property may go back to husband's family in certain cases.

Key point: As an NRI, you're entitled to inherit even agricultural land (which you cannot purchase directly but can inherit).

Muslim Succession: Fixed Shares

Muslim Personal Law prescribes fixed shares:

  • Wife: 1/8 if there are children, 1/4 if no children
  • Husband: 1/4 if there are children, 1/2 if no children
  • Daughter: 1/2 if only one, 2/3 shared if multiple (sons get double share)
  • Parents: 1/6 each if there are children

These shares are mandatory. Muslims can only will away up to 1/3 of their estate to non-heirs.

Christian & Parsi Succession

Governed by Indian Succession Act 1925:

  • If intestate, widow gets 1/3, children share 2/3
  • If no children, widow gets 1/2, deceased's parents/siblings get 1/2
  • More flexibility than Hindu or Muslim law

👉 Tip: Regardless of religion, a registered will overrides intestate succession laws. You control distribution instead of law deciding for you.

What Assets Can NRIs Inherit in India?

Good news: NRIs can inherit any property in India-even types they cannot purchase.

Movable Property:

Also Read -Best Mutual Funds for NRIs to Invest in India

Immovable Property:

  • Residential property
  • Commercial property
  • Agricultural land (cannot buy but can inherit)
  • Farmhouses (cannot buy but can inherit)
  • Plantation property (cannot buy but can inherit)

No RBI permission required to inherit. FEMA regulations allow NRIs to inherit any immovable property from residents or other NRIs who acquired it legally.

The Will: Your Most Important Financial Document

Let's be direct: Not having a registered will is financial negligence if you own property.

Why You Need a Will

Legal clarity: Your wishes documented, not open to interpretation.

Avoid family disputes: Clear beneficiaries reduce conflict. We've seen brothers stop talking over property disputes that could've been avoided.

Faster asset transfer: Probate/execution is faster than succession certificate.

Minor children protection: Appoint guardians you trust.

Tax planning: Structure bequests to minimize tax for heirs.

Specific instructions: You can leave different assets to different people (property to son, FDs to daughter, jewelry to spouse).

Business continuity: If you own a business, will ensures smooth transition.

What Makes a Valid Will in India

Per Indian Succession Act 1925, a valid will requires:

  1. Testator capacity: Sound mind, adult (18+)
  2. Free consent: Not under coercion, fraud, undue influence
  3. In writing: Typed or handwritten
  4. Signed: Testator must sign
  5. Witnessed: Minimum two witnesses who sign in testator's presence
  6. Dated: Should mention date of execution

Does not require:

  • Stamp paper (though recommended)
  • Registration (optional but highly recommended)
  • Lawyer drafting (but strongly advised for complex estates)
  • Notarization (optional)

Registered vs Unregistered Will

Unregistered Will:

  • Legally valid if witnesses attest
  • Risk: Can be lost, destroyed, tampered with, challenged easily
  • Probate process more complicated

Registered Will:

  • Registered at Sub-Registrar office per Registration Act 1908
  • Permanent government record
  • Very difficult to challenge
  • Easier probate
  • Cost: ₹1,000-5,000 depending on state
  • NRIs can register through Power of Attorney holder

Our strong recommendation: Always register your will. The ₹2,000 fee can save your heirs ₹10-20 lakh in legal fees.

The Multiple Wills Strategy for NRIs

Here's a strategy many NRIs don't know: You can have multiple wills-one for each country.

Why this works:

  • Simplifies probate-each will goes through its local legal system
  • Avoids conflicts between legal systems
  • Faster execution

How to structure it:

Will 1: Indian Will (Registered in India)

  • Covers all Indian assets: property, bank accounts, investments
  • Names Indian executor (family member or trusted friend in India)
  • References Indian law
  • Registered at Sub-Registrar in city where property located

Will 2: UAE Will (Registered with DIFC/ADGM)

  • Covers all UAE assets: property, bank accounts, EOBI, gratuity
  • Appoints guardians for minor children
  • Names UAE executor
  • Follows DIFC/ADGM process

Critical: Each will must clearly state it applies ONLY to assets in that jurisdiction. Include clause: "This will revokes all prior wills made by me in respect of my assets located in [Country]. It does not affect any will made by me concerning assets located in any other country."

Never let one will accidentally revoke the other.

What to Include in Your Will

1. Personal Information:

  • Full name, passport number, address, nationality
  • Date and place of execution

2. Declaration:

  • State you're of sound mind
  • This is your last will (for specified jurisdiction)
  • Revokes previous wills for this jurisdiction

3. Executor:

  • Name person to execute will
  • Alternate executor if first unavailable
  • Give powers: sell property, access bank accounts, handle legal matters

4. Beneficiaries:

  • List each person/entity receiving assets
  • Their relationship to you
  • Full identification details

5. Asset Distribution:

  • Be specific: "My residential flat at [address] to my son Rahul"
  • Not vague: "All property to my children"
  • For bank accounts: specify account numbers or "all bank accounts in XYZ bank"
  • For general assets: "All jewelry to my wife"

6. Guardianship (if minor children):

  • Name guardian for children under 18
  • Alternate guardian
  • Can be different from executor

7. Funeral/Religious Rites:

  • Any specific wishes

8. Residuary Clause:

  • Covers assets not specifically mentioned: "All remaining assets to my spouse"

9. Signatures:

  • Your signature
  • Two witness signatures
  • Date

Common Will Mistakes to Avoid

Mistake 1: Vague language
"Distribute my property among my children"

"My flat at [address] to my son. My fixed deposits in SBI account [number] to my daughter."

Mistake 2: Not updating after life changes

  • Marriage, divorce, birth of children, death of beneficiary, acquiring new assets

Update will every 3-5 years or after major life events.

Mistake 3: Choosing unavailable executor

  • Naming someone who lives abroad and can't easily come to India
  • Choose someone in India or give power of attorney to execute

Mistake 4: Not telling anyone

  • Heirs don't know will exists
  • Tell executor and family members where will is stored

Mistake 5: Forgetting digital assets

  • Passwords for bank accounts, investments, email
  • Leave secured record with executor

Mistake 6: Conditional bequests
"Property to son if he becomes doctor" Complex conditions invite legal challenges

Mistake 7: Joint property confusion
If property is jointly owned with survivorship rights, it automatically goes to co-owner, not per will

Mistake 8: Not considering tax implications
Large cash bequests to non-relatives can be questioned. Structure gifts wisely.

👉 Tip: Hire a lawyer specializing in NRI estate planning. Cost is ₹10,000-50,000 depending on complexity. That investment can save crores and years of family stress.

The Succession Certificate Nightmare (Why You Must Avoid It)

If someone dies without a will, the legal heir must obtain a succession certificate from the district court to claim movable assets (bank accounts, shares, mutual funds).

The Succession Certificate Process

1. File petition in district court where deceased resided or owned assets

2. Submit documents:

  • Death certificate
  • Legal heir certificate
  • Proof of assets
  • Birth certificate, marriage certificate
  • Apostilled documents for foreign papers
  • Power of attorney if NRI can't attend hearings
  • Multiple affidavits and indemnities

3. Public notice published for 45 days inviting objections

4. Court hearings over 6-18 months

5. Certificate granted after satisfaction

The Real Costs

According to Sarthak Ahuja's analysis:

  • Court fees: 3% of estate value in Delhi
  • Lawyer fees: 2-5% of estate value
  • Total cost: ₹8-18 lakh lakh for a ₹3 crore estate
  • Time: 6-18 months minimum
  • Emotional cost: Enormous

For NRIs, complexity multiplies:

  • Multiple visits to India (or extensive power of attorney)
  • Foreign documents must be apostilled
  • Longer delays if beneficiaries abroad

Example: Rajesh's father's ₹3.8 crore estate:

  • Court fees (3%): ₹11.4 lakh
  • Lawyer fees (3%): ₹11.4 lakh
  • Travel, documentation: ₹3 lakh
  • Total: ₹25.8 lakh + 12-18 months

A registered will would have cost ₹30,000 and taken 3-6 months.

👉 Tip: If your parents haven't made a will, have this conversation NOW. Show them this section. The ₹30,000 will registration can save your family ₹18 lakh and massive stress.

Nomination vs Will: Understanding the Critical Difference

Many NRIs think nomination equals will. It doesn't.

What is Nomination?

Nomination is facility in financial instruments where you name a person to receive asset for transmission purpose.

You can nominate in:

  • Bank accounts (NRE/NRO accounts)
  • Fixed deposits
  • Mutual funds
  • Shares (Demat account)
  • Insurance policies
  • Provident funds
  • GIFT City investments at Belong

Nomination vs Will: Key Differences

Aspect
Nomination
Will
Purpose
Transmission of asset
Actual transfer of ownership
Legal status
Nominee is caretaker/trustee
Beneficiary is owner
Rights
Nominee must distribute per succession law
Beneficiary owns outright
Override
Will overrides nomination
Will is final
Scope
Only specific financial instruments
All assets

Real-World Example

Suresh nominated his brother Ramesh in his ₹50 lakh FD. Suresh died without a will.

What happens:

  • Bank releases FD to Ramesh (fast, hassle-free)
  • But legally, Ramesh holds it as trustee for Suresh's legal heirs (wife, children)
  • If Ramesh keeps it, wife can sue
  • If dispute arises, court decides per succession law

With a will: Suresh's will says "₹50 lakh FD to brother Ramesh." Now Ramesh owns it, no questions asked.

Best Practice

Do both:

  1. Make a will specifying beneficiaries
  2. Update nominations to match will

This speeds up asset transmission (nominee gets access quickly) AND ensures legal ownership goes per your wishes.

👉 Tip: Review nominations annually. After marriage, divorce, or birth/death of family members, update immediately. Call your banks, mutual fund companies, and investment platforms to update nominee details.

Tax Implications: What NRIs Pay (and Don't Pay) on Inheritance

Great news first: India has no inheritance tax or estate tax.

When you inherit assets-cash, property, gold, investments-no tax is levied at the time of inheritance.

But here's where tax comes in:

1. Income Tax on Income from Inherited Assets

Rental income from inherited property:

  • Taxable as "Income from House Property"
  • Standard deduction: 30% of gross rent
  • Municipal taxes: deductible
  • Tax rate: per your NRI income tax slab
  • TDS: 31.2% deducted on rent paid to NRI

Interest from inherited FDs/bonds:

  • Taxable as "Income from Other Sources"
  • TDS: 30.9% for NRIs
  • Tax rate: per your income slab

Dividends from inherited shares/mutual funds:

  • Taxable as "Income from Other Sources" (since 2020)
  • Tax rate: per your income slab

You must file ITR in India if income from inherited assets exceeds basic exemption limit.

2. Capital Gains Tax When You Sell Inherited Assets

This is where it gets important.

Holding period calculation: Period deceased held asset + period you held = total holding period

Example:

  • Father bought flat in 2010
  • You inherited in 2023
  • You sell in 2026
  • Holding period: 2010-2026 = 16 years (long-term)

For Property (Immovable Assets):

  • Long-term (held >24 months): 20% tax with indexation (before 2025 budget)
  • Budget 2025 removed indexation benefit: Now 12.5% without indexation for property sold after July 23, 2024
  • Short-term (held ≤24 months): Per income tax slab

Also Read -NRI's Complete Guide to Selling Property in India

Cost of acquisition: Per Section 49(1) of Income Tax Act, cost to previous owner (deceased) is your cost.

If property acquired before April 1, 2001, you can use Fair Market Value as of April 1, 2001.

For Shares/Mutual Funds:

  • Long-term (held >12 months for equity): 12.5% above ₹1 lakh gain
  • Short-term (held ≤12 months): 20%% for equity

*Debt Funds irrespective of holding period are taxed at slab rate Up to 30%

3. Tax Saving Strategies Post-Inheritance

Section 54: If you sell inherited residential property, reinvest capital gains in another residential property within 2 years to claim exemption.

Section 54EC: Invest capital gains in specified bonds (REC, NHAI) within 6 months-exemption up to ₹50 lakh.

Hold long-term: If you don't need money immediately, hold inherited equity for 12+ months to qualify for lower LTCG rate.

Also Read -Tax Exemption Under Section 54 and Section 54F for NRIs: Your Complete Tax-Saving Guide

4. Wealth Tax

Wealth tax was abolished in India in 2015. You don't pay wealth tax on inherited property value.

5. TDS on Sale of Property by NRI

If you sell inherited property in India:

Use Form 15CA/15CB when repatriating sale proceeds.

👉 Tip: Plan asset sale timing. If you're returning to India soon and will become resident, selling as resident may offer better tax treatment. Consult CA before selling large inherited assets.

Repatriation: Getting Inherited Money Out of India

You've inherited property, sold it, and have ₹2 crore in your NRO account. Can you bring it to UAE?

Repatriation Rules for Inherited Assets

Sale proceeds from inherited immovable property:

Other inherited assets (cash, FDs, shares):

  • Already in NRO account? Repatriate up to USD 1 million per year
  • Transfer to NRE account if you want no restrictions

Required documents:

Process:

  1. Ensure capital gains tax paid (if applicable)
  2. CA certifies tax compliance (Form 15CB)
  3. Submit Form 15CA to bank
  4. Bank processes repatriation

Timeline: 2-4 weeks if documents in order

What if you need more than USD 1 million per year? Apply to RBI with justification. Approval considered on case-by-case basis.

Power of Attorney: Your Remote Management Tool

As an NRI, you can't fly to India every time you need to sign documents. Power of Attorney (POA) is essential.

Types of POA

General Power of Attorney (GPA):

  • Broad powers
  • Agent can perform most legal acts on your behalf
  • Useful for property management, inheritance claims

Special Power of Attorney (SPA):

  • Limited to specific acts
  • Example: SPA to sell one specific property
  • More control, less risk

Creating POA for India Use

If you're in India:

  • Execute on stamp paper of requisite value (varies by state)
  • Sign before notary or magistrate
  • Register at Sub-Registrar office

If you're in UAE:

  • Execute POA
  • Get it attested by Indian Consulate in UAE
  • Register in India (your attorney can do this with attested copy)

Who to appoint:

  • Trusted family member in India
  • Professional (CA, lawyer) if dealing with complex estate
  • Specify powers clearly
  • Revoke previous POAs to avoid confusion

Powers to include for estate management:

  • Claim inheritance
  • Obtain succession certificate
  • Register property
  • Sell property (if you authorize)
  • Access bank accounts
  • File legal cases
  • Sign documents on your behalf

👉 Tip: Review POA every 3-5 years. If relationship with attorney changes or they become unavailable, execute fresh POA. Always keep attested copy with you in UAE.

Joint Ownership: Pros, Cons, and Risks

Many NRIs add children as joint owners to property thinking it simplifies inheritance. Sometimes it helps. Often it creates problems.

Types of Joint Ownership

1. Joint Tenancy with Survivorship:

  • When one owner dies, property automatically goes to surviving owner
  • No probate needed
  • Will doesn't apply to this property

2. Tenancy in Common:

  • Each owner holds a specific share
  • When one dies, their share passes per their will (or succession laws)
  • Doesn't automatically go to co-owner

Most Indian property is "Tenancy in Common" unless stated otherwise.

When Joint Ownership Works

Pros:

  • Quick transmission after death (if survivorship)
  • Avoids probate for that asset
  • Can be useful for elderly parents

Example: Father adds NRI son as joint owner in his flat. Father dies. Son automatically becomes sole owner (if survivorship clause included). No court, no succession certificate.

When Joint Ownership Backfires

Cons:

  • Gift tax implications: Adding someone as owner may be treated as gift (if no consideration paid)
  • Capital gains later: Sale triggers tax with confusing cost calculations
  • Unintended beneficiary: Property goes to co-owner even if will says otherwise
  • Creditor risk: Co-owner's creditors can attach property
  • Family disputes: Other children may feel cheated

Example: Mother adds elder son as joint owner thinking "he'll take care of siblings." Elder son sells property, keeps proceeds, siblings get nothing. Mother's will is useless-property already transferred.

Better Alternatives to Joint Ownership

1. Nomination: Name nominee in property registration. Speeds transmission without transferring ownership during lifetime.

2. Will: Clear will leaving property to beneficiary. Takes 3-6 months but avoids premature transfer.

3. Revocable Trust: Property in trust with you as beneficiary during lifetime, heirs after death. Avoids probate, maintains control.

👉 Tip: Never add child as joint owner without consulting estate planning lawyer. The convenience isn't worth the potential tax and legal complications.

Retirement Planning: Building Your Retirement Corpus as an NRI

Estate planning isn't just about passing wealth after death. It's about ensuring you have enough wealth for your own retirement.

NRIs face unique challenges:

  • Where will you retire-UAE, India, or third country?
  • How much corpus do you need?
  • Where to keep retirement savings?
  • Tax efficiency?
  • Currency risk?

Calculating Your Retirement Corpus

Step 1: Estimate annual expenses

Current annual expenses in UAE: AED 200,000 (₹45 lakh)

If retiring in India, expenses might drop to ₹30 lakh/year.

Step 2: Account for inflation

At 6% inflation, ₹30 lakh today = ₹48 lakh in 10 years.

Step 3: Calculate corpus needed

For ₹48 lakh annual expenses, assuming 6% withdrawal rate: Corpus needed = ₹48 lakh ÷ 0.06 = ₹8 crore

For ₹30 lakh annual expenses today: With 6% inflation over 10 years, you'll need ₹6-8 crore corpus.

Also Read - How Much Money Does an NRI in the UAE Need to Retire Comfortably in India?

Where to Build Retirement Corpus?

Traditional Options:

1. NRE/NRO Fixed Deposits:

  • Returns: 6-7% p.a.
  • Safe but barely beats inflation
  • Tax: NRE interest tax-free; NRO taxed at slab

2. Mutual Funds:

  • Potentially higher returns (10-12% historically)
  • Market risk
  • Tax: LTCG 12.5% above ₹1.25 lakh for equity

Also Read - Taxation on Mutual Funds

3. Indian Real Estate:

  • Rental income + appreciation
  • Illiquid
  • High transaction costs
  • Property management hassles from abroad

Also Read -Taxation on Rental Income in India for NRIs

4. UAE Investments:

  • No income tax
  • Limited investment options for conservative investors
  • Currency risk if retiring to India

The Problem with Traditional Approaches:

NRE FDs taxed at slab when you become resident

Mutual funds face 10% LTCG tax

Real estate is illiquid

Rupee depreciation eats returns if savings in INR

The Smarter Approach: GIFT City for Retirement Planning

This is where GIFT City changes the game.

What is GIFT City?

Gujarat International Finance Tec-City (GIFT City) is India's first International Financial Services Centre (IFSC)-an onshore-offshore financial zone.

Why it's revolutionary for retirement planning:

1. Invest in USD

  • No INR-AED conversion
  • Hedge against rupee depreciation
  • Global purchasing power

2. 100% Tax-Free Returns

3. Easy Repatriation

4. Regulatory Safety

  • Regulated by IFSCA (International Financial Services Centres Authority)
  • Bank-grade security
  • Proper licensing

How Belong Helps NRIs Retire with Confidence

At Belong, we built our platform specifically to solve NRI retirement and estate planning challenges.

What we offer:

1. USD Fixed Deposits in GIFT City:

  • Tax-free returns
  • USD denomination
  • Flexible tenures
  • Easy withdrawals
  • No complex paperwork

2. Alternative Investment Funds (AIFs):

  • Access Indian equity markets
  • USD denominated
  • Tax-free returns
  • Professional fund management
  • Diversification

3. Seamless KYC:

  • Doorstep KYC in UAE
  • No need to visit India
  • Digital documentation
  • Fast processing

4. Estate Planning Integration:

  • Nomination facility on all investments
  • Clear beneficiary designation
  • Easy transmission to heirs
  • No succession certificate hassles

5. Retirement Planning Support:

Example Comparison:

Traditional Route (₹1 crore over 10 years):

  • NRE FD @ 6.5%: Maturity ₹1.88 crore
  • When you become resident: Taxed at 30% slab
  • Net: ₹1.62 crore (after tax)

GIFT City Route via Belong (₹1 crore in USD FDs):

  • USD FD @ 6% (tax-free): Maturity ₹1.78 crore (assuming stable exchange rate)
  • No tax when you become resident
  • Net: ₹1.78 crore (tax-free)

Plus: USD FDs protect against rupee depreciation. If INR weakens 3% annually, your USD corpus buys more in INR terms.

Over 20-30 years, tax savings compound massively.

Download the Belong app to explore USD investment options and start building your tax-efficient retirement corpus today.

Common Estate Planning Mistakes NRIs Make

After helping hundreds of NRIs through our community, we've seen these mistakes repeatedly:

Mistake 1: "I'll Do It Next Year"

Estate planning isn't urgent until it's too late.

Reality check: Accidents happen. Illnesses strike unexpectedly. If you have assets worth ₹50 lakh+, do it THIS month.

Mistake 2: Assuming "Property Automatically Goes to Children"

Without a will, property distributes per succession laws-which may not match your wishes.

Example: Hindu man dies intestate. His mother is alive. Mother gets equal share with wife and children. Your mother might not even want it, but law says she gets it, creating family complications.

Mistake 3: Making Will But Not Registering It

Unregistered wills can be challenged easily. Registration is ₹2,000-5,000. Don't skip it.

Mistake 4: Forgetting to Update Nominations

You nominated your brother in 2010. Now you're married with kids. If you die, brother gets assets first (though legally he must distribute to legal heirs).

Update nominations after every major life change.

Mistake 5: Not Coordinating UAE and India Wills

Your UAE will says "all assets to spouse." Your India will says "property to children." Now what?

Make sure wills coordinate or clearly state jurisdiction.

Mistake 6: Not Telling Family About Documents

Heirs don't know you have a will. After death, they go through succession certificate process. Will sits in bank locker nobody can access.

Tell executor where documents are stored.

Mistake 7: Keeping All Money in One Country

All savings in India? Rupee depreciation erodes value. All savings in UAE? Might need to bring to India during retirement-complex taxation.

Diversify across jurisdictions and currencies. This is why GIFT City USD investments make sense.

Mistake 8: Not Planning for Incapacity

Estate planning isn't just for after death. What if you're incapacitated (coma, dementia)?

Create Living Will and Medical Power of Attorney stating who makes medical decisions.

Create Durable Financial Power of Attorney so someone can manage finances if you're unable.

Mistake 9: Assuming NRI Status Lasts Forever

You're NRI today. Tomorrow you might become RNOR or Resident.

Tax implications change. Estate plan must account for changing residential status.

Mistake 10: DIY Complex Estate Planning

Simple estate? DIY might work.

Complex estate (multiple properties, business, large corpus, beneficiaries in multiple countries)? Hire professional.

Cost: ₹25,000-1,00,000 depending on complexity. Savings: Potentially crores in taxes and legal fees.

Worth it? Absolutely.

👉 Tip: Review estate plan every 3 years or after major life events (marriage, divorce, birth, death, property acquisition, relocation). Laws change. Circumstances change. Plans must adapt.

Step-by-Step Estate Planning Checklist for NRIs

Let's make this actionable. Here's your complete checklist:

Phase 1: Document and Organize (Week 1-2)

List all assets:

  • India: Property addresses, bank accounts, investments, insurance
  • UAE: Property, bank accounts, EOBI, gratuity, assets
  • Other countries: Any assets elsewhere

List all liabilities:

  • Mortgages, loans, credit cards
  • Who owes you money

Gather documents:

  • Property deeds
  • Bank account statements
  • Investment statements
  • Insurance policies
  • Loan documents

Create digital asset inventory:

  • List all online accounts (email, banking, investments)
  • Password management (use password manager, share master password with spouse in sealed envelope)

Phase 2: Create Your Wills (Week 3-4)

Hire estate planning lawyer

  • Specializes in NRI matters
  • Understands both India and UAE laws

India Will:

  • List all Indian assets
  • Specify beneficiaries
  • Appoint executor (someone in India)
  • Include guardianship clause if minor children
  • Get it drafted, signed, witnessed
  • Register at Sub-Registrar

UAE Will (if applicable):

  • Register with DIFC Wills (Dubai) or ADGM (Abu Dhabi)
  • Cover all UAE assets
  • Appoint guardians for minor children
  • Name executor

Store copies safely:

  • Give copy to executor
  • Keep copy in safe deposit box
  • Keep digital copy in secure cloud storage
  • Tell family where originals are

Phase 3: Update Nominations (Week 5)

Update bank account nominations:

Update investment nominations:

Also Read -Term Insurance for NRI

Add beneficiary to EPF, PPF:

  • Update nomination in Provident Fund
  • Public Provident Fund (if applicable)

Check pension nominations:

  • EOBI (UAE)
  • Any other pension schemes

Phase 4: Power of Attorney (Week 6)

Execute General Power of Attorney:

  • For trusted family member/friend in India
  • Get it attested by Indian Consulate in UAE
  • Register in India

Execute Durable Financial POA:

  • In case you're incapacitated
  • Separate document from general POA

Execute Medical Power of Attorney:

  • Who makes medical decisions if you can't

Phase 5: Review Tax Implications (Week 7)

Consult tax advisor:

  • Understand tax on inherited assets
  • Plan beneficiary structure tax-efficiently
  • Review DTAA implications

File pending ITRs:

Phase 6: Retirement Corpus Planning (Week 8)

Calculate retirement corpus needed:

  • Use our tools to estimate

Review current investments:

  • Are they tax-efficient?
  • Diversified?
  • Aligned with retirement timeline?

Consider GIFT City investments:

Set up systematic investment:

  • Monthly SIP in GIFT City funds
  • Build corpus systematically

Phase 7: Communication (Week 9)

Have "the talk" with family:

  • Tell spouse about estate plan
  • Inform adult children
  • Explain where documents are
  • Introduce them to executor/advisor

Share with executor:

  • Give executor copy of will
  • Explain your wishes
  • Ensure they know location of assets

Write a letter of wishes:

  • Not legally binding but guides executor
  • Personal items distribution
  • Funeral preferences
  • Any messages to loved ones

Phase 8: Annual Review (Ongoing)

Set annual review reminder:

  • Every April, review estate plan
  • Update for life changes
  • Check if laws changed
  • Rebalance retirement portfolio

Update after major events:

  • Marriage/divorce
  • Birth/adoption
  • Death of beneficiary/executor
  • Acquisition of significant asset
  • Change in residency status

How to Have "The Conversation" with Aging Parents

If you're reading this and your parents in India haven't made a will, you need to have this conversation. It's uncomfortable. But necessary.

Why Parents Resist

Common objections we hear:

  • "Thinking about death is inauspicious"
  • "It'll create family disputes"
  • "There's time, I'll do it later"
  • "Talking about inheritance is awkward"
  • "My children will manage, they're educated"

How to Approach the Conversation

1. Choose the right time:

  • Not during festivals or celebrations
  • Pick calm moment when you're visiting
  • Have privacy

2. Lead with love, not fear:

Wrong: "If you die without a will, we'll fight in court for years"

Right: "I want to make sure your wishes are respected. Let's document things so there's no confusion."

3. Share this article: Send this guide. The Rajesh story. The costs section.

4. Offer to help: "I'll arrange the lawyer. You just need to specify wishes."

5. Make it easy:

  • Find lawyer for them
  • Schedule appointment
  • Go with them (or arrange video call if you're in UAE)
  • Handle registration

6. Explain how it protects family: Will prevents disputes AMONG children, not creates them. Clear instructions avoid brother-sister fights.

7. Start small: If they're resistant to full will, start with nominations update. Progress to will later.

Sample Script

"Papa, I was reading about estate planning. Many NRI families face issues when parents don't have a will. Not in our family-I trust everyone. But legally, without a will, the process takes 1-2 years and costs lakhs. I don't want the family stuck in court when we should be mourning together.

Can we sit together this weekend and just list out your assets and wishes? We'll document everything properly. I've found a good lawyer. Will take 2-3 hours total.

This way, your wishes are crystal clear. Nobody has to guess or fight. And honestly, it'll give me peace of mind knowing everything is organized."

After the Will is Made

Thank them profusely.

This is one of the greatest gifts parents can give children-clarity and documented wishes.

Store will safely. Update every 3-5 years.

👉 Tip: If your parents made a will 10+ years ago, it likely needs updating. Laws changed (2005 amendment to Hindu Succession Act gave daughters equal rights). Assets changed. Time to review.

Special Considerations for NRIs Returning to India

Planning to return to India for retirement? Estate planning becomes more important.

Tax Status Changes

As NRI:

  • Interest on NRE deposits tax-free
  • Foreign income not taxable in India
  • LTCG on equity: 10% above ₹1 lakh

As Resident:

  • All income taxable (including interest on NRE-becomes resident account)
  • Global income taxable
  • Same capital gains rates

Financial Account Transitions

What happens to your accounts when you become resident:

NRE Account → Converts to Resident Rupee account; balance becomes fully taxable

NRO Account → Already taxable; stays as is

FCNR Account → Convert to RFC (Resident Foreign Currency) within reasonable time

GIFT City USD Deposits → Remain tax-free! This is a huge advantage.

GIFT City Advantage for Returning NRIs

This is where GIFT City shines for returning NRIs:

Scenario 1: Traditional Route

  • You have ₹2 crore in NRE FDs earning 7%
  • You return to India, become resident
  • NRE converts to resident savings
  • Interest of ₹14 lakh/year now taxed at 30% slab = ₹4.2 lakh tax annually

Scenario 2: GIFT City Route

  • You have ₹2 crore in GIFT City USD FDs earning 6%
  • You return to India, become resident
  • GIFT City investments remain tax-free
  • Interest of ₹10 lakh/year remains 100% tax-free
  • Plus USD protection against rupee depreciation

Over 20 years of retirement, tax savings = ₹80+ lakh.

This is why we built Belong-to give returning NRIs tax-efficient options.

Taking Action: Your Next Steps

Estate planning feels overwhelming. Break it into steps.

This Week:

  1. Download and print this guide. Keep it handy.

  2. List your assets. India, UAE, elsewhere. Write it down.

  3. Check if you have a will. If yes, when was it last updated? If no, start the process.

  4. Update one nomination. Start with your largest bank account.

This Month:

  1. Consult estate planning lawyer. Get India will drafted and registered.

  2. Register UAE will (if you have UAE assets).

  3. Execute Power of Attorney for someone in India.

  4. Have the conversation with parents (if they haven't made a will).

This Quarter:

  1. Review retirement corpus. Are you on track?

  2. Explore GIFT City investments. Compare vs your current investments.

  3. Join our Belong community. Learn from other NRIs, share experiences, get answers.

  4. Download Belong app. Start investing tax-efficiently in GIFT City.

This Year:

  1. Build a systematic retirement plan. Monthly investments in tax-efficient instruments.

  2. Annual estate plan review. Set a calendar reminder for every April.

  3. Update beneficiaries everywhere after life changes.

How Belong Simplifies Estate & Retirement Planning for NRIs

Estate planning is complex. Retirement planning is crucial. We built Belong to make both easier for NRIs.

What makes us different:

1. Tax-Free Investing for Retirement

Our GIFT City USD deposits and AIFs offer 100% tax-free returns-even when you become resident.

No other platform offers this for NRIs.

2. Clear Nomination & Transmission

All our products have a nomination facility. Clear transmission process. No succession certificate hassles for heirs.

3. USD Protection

Rupee depreciation is real. Over 30 years, INR has weakened ~3% annually vs USD.

By holding USD corpus, you protect purchasing power.

4. Seamless KYC

Doorstep KYC in UAE. No trips to India needed. Digital documentation. Fast processing.

5. Expert Guidance

Our team has deep expertise in NRI finance.

We understand the pain points because we live them. We're here to guide you.

6. Community Support

Join 1,000+ NRIs in our WhatsApp community.

Ask questions. Share experiences. Learn from others navigating the same journey.

7. Integrated Tools

Compare FD rates across NRE/NRO/GIFT City.

Check your residential status for tax purposes.

Track rupee-dollar trends.

Everything you need in one place.

Final Thoughts: Protect Your Legacy, Secure Your Retirement

Estate planning isn't about death. It's about protecting your life's work.

You've spent decades building wealth. You've worked hard. Saved diligently. Made smart investments.

Don't let poor planning undo that. Don't leave your family fighting in court. Don't let the government take 30% of your estate in avoidable taxes.

Two simple actions protect everything:

1. Make a registered will. 2. Invest tax-efficiently.

The first protects your family from legal nightmares. The second protects your wealth from tax erosion.

We're here to help with both.

Ready to secure your family's future?

👉 Download the Belong app and start building your tax-free retirement corpus in GIFT City USD investments.

👉 Join our WhatsApp community of 1,000+ NRIs discussing estate planning, retirement strategies, and wealth preservation.

👉 Compare investment options across NRE, NRO, and GIFT City to see where your money works hardest.

👉 Check your tax residential status to understand your tax obligations.

At Belong, we're not just an investment platform. We're your partners in building a financially secure future - for you and the generations after you.

Let's make sure your legacy is protected and your retirement is comfortable.

Sources:

  1. Business Today: NRIs Losing Crores Due to Missing Succession Certificate
  2. ICICI Bank: Navigating NRI Inheritance Laws in India
  3. NRI Legal Service: Evolving Succession Laws in India
  4. GoINRI: NRI Inheritance Guide
  5. NoBroker: Writing a Will in India for NRIs
  6. EzyLegal: NRI Inheritance Law in India
  7. NRI Simplify: Inheritance Laws & Tax Implications
  8. ICICI Bank: Tax Implications for NRIs on Inheritances
  9. Al Tamimi: Inheritance Law in UAE
  10. Indian Consulate Dubai: Wills in UAE
  11. James Berry: UAE Inheritance Law Amendments 2023
  12. Easy Global Banking: UAE Inheritance Bank Accounts Guide