Estate Planning for NRIs: Wills, Nominees, Power of Attorney & Cross-Border Reality

NRIs are good at building wealth. They are often not prepared for what happens if they are not around.

Assets spread across countries, bank accounts that can’t be accessed, nominees who don’t know their role, and families stuck in paperwork. These problems don’t arise because people didn’t care. They arise because estate planning was postponed.

Estate planning is not about pessimism. It is about making life easier for the people you care about. For NRIs, it becomes even more important because assets and laws don’t sit in one country.

Why Estate Planning Is More Complex for NRIs

Estate planning for NRIs is harder than for residents because of three reasons.

• Assets are spread across countries (India + overseas)
• Different countries follow different succession rules
• You are physically absent, so your family has to handle processes without you

This combination creates confusion at the worst possible time.

Nominee vs Legal Heir: The Most Common Misunderstanding

A nominee is not the owner of the asset.

A nominee is usually a custodian, someone authorised to receive the asset on behalf of the rightful heirs. Ownership is typically decided by:

• A valid will
• Or succession rules, if there is no will

Relying only on nomination shifts the burden to your family later.

Do NRIs Need a Will in India?

If you hold assets in India, a will usually helps significantly.

Indian assets include:

• Bank accounts
• Mutual funds and demat holdings
• Insurance policies
• Real estate

Without a will, families often need to rely on processes like legal heir documentation or court-driven certificates, which can take time and patience.

One will or separate wills?

There is no one-size answer, but the general idea is:

• A will should clearly cover assets in India
• Foreign assets may need separate consideration depending on local rules

The key is clarity and coordination, not complexity.

Power of Attorney (PoA) for NRIs: What It Can & Cannot Do

Power of Attorney is often used by NRIs to manage operations from abroad. It can be very useful, but it has limits.

What a PoA can help with

• Operating bank accounts (as permitted by the bank)
• Managing paperwork and routine requests
• Handling documentation and coordination

What a PoA cannot do

• Transfer ownership after death
• Replace a will
• Override bank or regulatory rules

PoA is useful for operations. It is not a substitute for succession planning.

What Changes After Returning to India

When NRIs return to India, estate planning needs a review because:

• Residential status changes
• Bank accounts and classifications change
• Tax residency can impact reporting and documentation expectations

Things worth reviewing after return:

• Existing wills
• Nominations across accounts
• PoA relevance and validity

Common Estate Planning Mistakes NRIs Make

• Assuming nomination is enough
• Creating a PoA but skipping a will
• Not updating documents after marriage, children, or return to India
• Forgetting to review foreign assets and disclosures
• Thinking estate planning is only for old age

Estate planning is not about age. It is about order.

Estate Planning Checklist for NRIs

While staying abroad

• List assets country-wise (India + overseas)
• Ensure nominations are updated across accounts (use multiple nominees where it fits)
• Create or review a will covering Indian assets
• Create a secure plan for digital access (email, banking, broker, wallet access)

While planning to return to India

• Review whether PoA is still needed
• Check if wills need updating based on future residency
• Align documents with your return timeline

After returning to India

• Update residential status where required
• Review estate plan under resident rules
• Simplify the structure where possible

Final Takeaway

Estate planning is not about predicting outcomes. It is about reducing uncertainty.

For NRIs, the real risk is not lack of wealth. It is lack of access and clarity. A basic, well-thought-out estate structure reduces stress for your family and avoids avoidable delays.

Explore the NRI Investing Series

• NRI investing in India: complete guide
• NRE vs NRO vs FCNR explained
• NRI taxation in India
• Repatriation rules for NRIs
• NRI mutual funds & FATCA
• NRI stock investing in India
• Returning to India (RNOR) planning

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Estate planning rules vary by jurisdiction and individual circumstances. Consult qualified professionals before making decisions.