Inheritance & Succession in India for NRIs in USA

Intestate succession -- who inherits if there is no Will

If a person dies without a Will (intestate), inheritance in India follows personal law: the Hindu Succession Act, 1956 for Hindus, Sikhs, Jains and Buddhists; the Indian Succession Act, 1925 for Christians and Parsis (with some community-specific rules); and separate personal law/the Muslim Personal Law (Shariat) Application Act, 1937 for Muslims. Being an NRI does not change an heir's entitlement under these laws -- an NRI child or sibling inherits on exactly the same footing as one living in India.

Succession Certificate vs. Legal Heir Certificate

These are often confused but serve different purposes. A Succession Certificate, granted by a civil court under Part X of the Indian Succession Act, 1925, specifically authorizes the holder to collect debts and securities (bank accounts, shares, mutual funds, insurance payouts) of the deceased -- banks and financial institutions typically insist on one before releasing funds. A Legal Heir Certificate, issued by a revenue/local authority, is a simpler document establishing who the legal heirs are and is commonly used for pension, employment benefit, and some property-mutation purposes, but is not a substitute for a Succession Certificate when a bank or company specifically requires one.

When probate is required for a Will

Under Section 213 of the Indian Succession Act, 1925, a Will does not by itself authorize dealing with property unless it has been probated, in two situations: (1) the Will was made by a Hindu, Buddhist, Sikh or Jain and the property is within the original civil jurisdiction of the Bombay, Calcutta, or Madras High Courts, or the Will concerns immovable property situated within those jurisdictions, or (2) the testator was a Christian or Parsi. Outside those situations, a registered Will can often be acted on directly, though banks and registrars frequently ask for it anyway as a practical matter -- it is worth confirming with the specific bank/registrar office involved before assuming it isn't needed.

How an NRI in the USA can handle this without travelling to India

A Power of Attorney executed in the USA (notarized and apostilled, since the USA and India are both Hague Apostille Convention members) can authorize a trusted person in India to file the succession certificate/probate petition, appear in court proceedings where personal appearance isn't mandated, and complete bank/property formalities on the NRI's behalf. Many succession matters proceed largely through the India-based petitioner acting under this POA, with the NRI heir only needing to sign specific documents sent to them, rather than being physically present.

Practical steps once succession documents are obtained

1. Notify the relevant banks, mutual fund registrars (via RTAs like CAMS/KFintech), and insurance companies with the Succession Certificate or probated Will.
2. For immovable property, apply for mutation of revenue records in the heirs' names at the local municipal/revenue office.
3. If the property is later sold, the NRI seller should account for TDS on the sale and follow the applicable FEMA repatriation route for the proceeds (see this platform's Property Law and Tax sections).