When borders blur: Inheritance challenges in NRI marriages

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In an increasingly globalised world, owning assets is no longer about who gets what. It is also about planning for eventualities arising from varying and complex legal systems and rules governing succession.

Consider a common situation today. A non-resident Indian (NRI) with assets in India marries a foreign national. There are two possibilities: first, where the NRI retains their Indian citizenship; second, where the NRI takes up foreign citizenship, in which case, they could be an Overseas Citizen of India (OCI) if they wish. The spouse and children in both situations will be eligible for OCI registration, subject to relevant conditions.

In such situations, a fundamental question arises: which laws determine who inherits the assets?

Under Indian law, movable and immovable assets are treated differently upon the owner's demise in the absence of a will. Movable assets such as securities and investments are generally governed by the laws of the deceased’s domicile. Immovable assets, such as real estate , are governed by the local laws of the jurisdiction where the property is situated.

For instance, consider a Hindu living in Singapore who owns units in a Singapore-based fund and a house in India. Where this person passes away without a will, succession of the units will be governed by Singapore law, while that of the house will typically be governed by the Hindu Succession Act, 1956 (which is applicable law in India).

As this illustration shows, a single estate may be subject to different legal regimes, resulting in succession complexities.

A marriage validly entered into overseas is generally recognized in India as long as it satisfies the requirements under Indian law. Registration in India is not compulsory for succession matters. This means that inheritance rights do not depend on whether there is specific registration in India, provided the marriage itself is legally valid. This issue has also drawn policy attention in recent years. In 2019, the Government of India introduced a Bill in parliament proposing mandatory registration of marriages between an NRI and an Indian citizen, or between two NRIs, driven by rising reports of Indian women being trapped in fraudulent marriages with NRIs. The Bill was not passed, and has since lapsed. It has recently been confirmed in parliament that such legislation will not be reinitiated.

Under Indian succession law, anyone can inherit property, including NRIs and their heirs. The Supreme Court of India has clarified that citizenship does not bar anyone from inheriting Indian assets. Thus, a foreign national (such as the deceased NRI’s heir) will be included in the line of succession.

That said, inheritance and ownership by acquisition are treated differently. Regulatory requirements continue to apply after the property has been inherited.