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Time of India
3 days ago
- Business
- Time of India
Making Will for succession: What is a probate will and how does it help in succession of estate?
What is a probate to a Will? Is probate compulsory even if a Will is valid? 5 benefits of having a probate Will Court authentication: Validates the will and reduces the chance of forgery or challenge Validates the will and reduces the chance of forgery or challenge Eases asset transfer: Institutions like banks, mutual funds, and real estate registrars accept probated wills more readily Institutions like banks, mutual funds, and real estate registrars accept probated wills more readily Clarity for heirs: Prevents ambiguity and reduces chances of legal disputes Prevents ambiguity and reduces chances of legal disputes Executor empowerment: Provides a clear mandate for executors to carry out asset division Provides a clear mandate for executors to carry out asset division Essential for NRIs and HNIs: Especially helpful for families with international or cross-state property holdings When should you consider probate? You own immovable property in Mumbai, Chennai, or Kolkata Your estate involves multiple heirs or complex family relationships There is no nominee in major assets like FDs, mutual funds, or demat accounts You expect any challenge or contestation to your will You have cross-border or pan-India assets (NRI, HNI, or business family) What happens if you don't have a probate Will? Drafting a Will is one of the simplest forms of succession planning , which can help many Indian families from succession related a simple Will, while useful, may not always be enough, especially when it comes to real estate especially in big cities like Mumbai, Kolkata, or Chennai, or when multiple legal heirs are involved. This is where probate of a Will comes to the rescue of legal heirs as it helps significantly in smooth transfer of inheritance to intended legal basic shortcoming which a simple Will has that there is no way it can prove for itself about its authenticity. This is where it is challenged in court by people who are unwilling to accept its authenticity. To cure this flaw, wonder the Indian law, a probate of Will is done, which is a judicial certification of a Will's authenticity, issued by a court. It not only strengthens the legal standing of the Will but is mandatory in certain jurisdictions. Once probate is granted, it acts as conclusive proof of the executor's right to distribute the assets according to the confusion persists: Is probate always needed? What is the extra benefit if the Will is already clear?"Getting a Will probated means obtaining a court's certification that the Will is valid andgenuine, allowing the executor to legally administer and distribute the deceased's estate. It provides legal certainty to beneficiaries and ensures the Will is carried out as intended," says Sreepriya NS, co-founder and director of Entrust Family estate values grow and family structures become more complex, understanding how a probate Will streamlines succession is more relevant than ever, for both legal clarity and peace of the years, writing a Will has been seen as a smart and responsible way to plan for succession. But in India, simply drafting a Will may not always guarantee that your assets will transfer smoothly to your heirs. In fact, in several parts of the country, and especially when dealing with immovable property, a probate Will can offer a much stronger legal cities like Mumbai, Chennai, and Kolkata, probate isn't just a formality, it's a legal requirement. However, awareness around what is a probate Will and why it may be necessary, is limited among most Indian families."Probate is mandatory for Hindus, Jains, Sikhs and Buddhists, when a Will includes immovable property located in Chennai, Kolkata and Mumbai or if the Will is executed in these cities. This is because these cities are still considered presidency towns from colonial times, and the law under the Indian Succession Act continues totreat them differently," says Nikhil Varghese, Co-founder of Yellow, a digital will-making app. For other parts of India, probate is optional but still beneficial in many Gaggar, Partner, Cyril Amarchand Mangaldas concurs, "Probate is required in some Indian cities, by which court authenticates validity of the Will and grants administration of estate to executor; and for the executor or beneficiary to establish their right under the Will before a court of law. Historically, the English probate practice was applied to specific notified areas in the presidency towns of Calcutta, Madras and Bombay. Under the present-day Indian Succession Act, this continues to apply to areas which fall within the original civil jurisdiction of the High Courts at Kolkata, Chennai or Mumbai."If the estate is modest, heirs are in agreement, and assets are already nominated, a basic Will may be enough. However, many Indians today hold multiple assets across states, deal in real estate, or face complex family structures, where a simple Will may not stand up to Desai, partner and co-founder of The Fort Circle, a legal advisory firm, echoes "Although obtaining a Probate is mandatory only in the jurisdictions of the former Presidency Towns-namely Kolkata, Mumbai, and Chennai-this does not imply that a Will is automatically deemed valid in other parts of India. A Will executed outside these areas must still be proved to be valid if its authenticity is challenged, typically through a suit filed before a competent court."A family with complex asset mix needs a probated Will more than others. "In India, probate has become a key estate planning tool, especially for families with complex assets. It ensures Wills are legally sound, reducing disputes. Advisors recommend drafting Wills with probate in mind, particularly in cities like Mumbai, Chennai, and Kolkata, where it's often required. This promotes transparency, clarity, and smooth succession. Proactive probate use enhances enforceability, lowers litigation risks, and simplifies estate administration," says Shraddha Nileshwar, Vertical Head for Will & Estate Planning at 1 Finance, a financial advisory where it isn't mandatory, a probate-backed Will has several key advantages, some of which are discussed below:Many are now opting for comprehensive succession plans that combine Wills, trusts, and probate filings, particularly in joint families or NRI households. Probate also acts as a legal shield when estate distribution might otherwise be companies also help clients navigate the court process of obtaining probate, ensuring documents are in order, notifications are issued, and follow-ups are handled without burdening the obtain probate, the executor or legal heir must submit an application to the court, along with documents such as the original Will, the death certificate, identity proof, and details of heirs. The court invites objections, and if uncontested, issues the probate should seriously consider probate in the following scenarios:In such cases, probate is more than a legal formality, it becomes your estate's strongest protection the absence of probate, banks and land registrars often refuse to transfer ownership or release funds, even if there is a Will. This can lead to legal delays and emotional distress for the surviving family can often lead to financial loss as well. "A 2022 India Wealth Report notes 35% of families without probate face disputes, losing 3-8% of estate value. With 40% of high-net-worth families now using probate, a 15% rise since 2019, it minimizes delays and ensures efficient wealth transfer for complex estates, says Shraddha delay in accessing the asset will have financial implications for the legal heirs. "The pendency of cases in Indian courts can and in fact do significantly delay the grant of probates/ letters of administration of wills, impacting the process of administering estates and distributing assets in accordance with a Will. This delay can arise from several factors, including the vast number of pending cases, limited judicial resources, and the complexities of legal proceedings per se. Proving a will in court of law can be an arduous task, particularly if it's contested. The process requires demonstrating the Will's validity, including the testator's capacity, due execution, and the absence of undue influence or suspicious circumstances," says Tahira Karanjawala, Partner at Karanjawala & Desai gives an example of a situation where asset transfer became difficult because a simple Will wasn't probated. "Often there are delays in transfer of flats in a Co-operative housing society in the absence of a Probate. For example, if a flat is owned by X and, under X's Will, the flat is bequeathed to one legal heir to the exclusion of others, the society refuses to transfer the flat to the named beneficiary unless the Will is proven valid through by a competent court by issuing a Probate. This is because housing societies prefer to avoid being drawn into potential legal disputes that may arise if other legal heirs challenge the Will."
Economic Times
20-05-2025
- Business
- Economic Times
NRI Talk: Why NRIs are exploring Vietnam, Indonesia, and Africa for tactical growth, Sreepriya NS decodes
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In a world where geopolitical shifts and economic realignments are rewriting investment playbooks, Non-Resident Indians ( NRIs ) are no longer limiting their portfolios to traditional hotspots like India, the US, or the UK. A new trend is quietly gaining momentum — one that points to emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern this edition of NRI Talk, we speak with Sreepriya NS, Co-founder and Director of Entrust Family Office, to understand why globally savvy NRIs are increasingly eyeing these frontier economies for tactical growth From favourable demographics and improving infrastructure to strategic diversification and early-stage investment opportunities , these regions are drawing attention for more than just their growth potential — they offer resilience, reach, and a new edge to global wealth strategies. Edited Excerpts –A) NRIs continue to view India as a compelling long-term investment destination, driven by its strong domestic consumption, demographic dividend, and a rapidly formalising are drawn not just by the potential for financial returns, but by the emotional and strategic value of investing in their country of origin — whether that's through real estate, startups, listed equities, or legacy NRIs are increasingly diversifying their portfolios across geographies. Countries like Singapore, the UAE, the US, and the UK remain attractive due to their stable financial ecosystems, regulatory ease, and access to global investment particular, Singapore and Dubai are emerging as investment hubs due to their tax efficiency, business-friendly environments, and proximity to many NRIs with family or business linkages abroad invest in local real estate and private funds, aligning these investments with their global is also a growing trend of tactical investments in emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern Europe, offering high-growth trend reflects a balanced strategy: India continues to represent 'roots and returns', while global markets provide 'reach and resilience'.Key Statistics (as of Dec 2024):• Mutual Fund Investments by NRIs: Approx. USD 18–20 billion (~INR 1.6 lakh crore)• NRI Bank Deposits: Approx. USD 162 billion (~INR 13.7 lakh crore) across FCNR, NRE, and NRO accountsA) In case of Mutual funds, (which as per SEBI regulation, are established as a trust) the gains from sale of a unit cannot be treated the same as gains from sale of share of a under the Article 13 (5) of the DTAA with the above countries, the gains are taxable only in the country of residence of NRIs of such countries, and not in India.A) While specific data on NRI investments into REITs and fractional ownership models in India remains limited, the broader trend in real estate investment is invested approximately USD 3.1 billion (INR 26,000 crore) in Indian real estate during the first half of 2024, following a total investment of around USD 13 billion in growing interest in REITs and fractional ownership platforms reflects a shift toward more structured, accessible, and diversified real estate investment models offer NRIs the advantage of transparency, liquidity, and lower ticket sizes — making real estate participation more feasible without the operational complexities of direct not a one-size-fits-all approach, REITs and fractional investments are increasingly seen as efficient, regulated, and scalable avenues for NRIs to participate in India's real estate growth NRIs continue to hold significant real estate assets in India, despite having settled abroad for Entrust, we've supported families like one from Hyderabad, now in the U.S. for over 35 years, with managing their residential and commercial real challenge often lies with the next generation, who face the burden of inheritance, tenant management, and compliance from a bespoke family office, we help simplify this complexity—offering peace of mind and practical solutions so they can focus on their lives overseas.A) One of the biggest mistakes NRIs often make when investing in India is approaching it with the same mindset or assumptions they use in their resident countries. India is a dynamic, high-growth market — but it also comes with its own set of regulatory, taxation, and liquidity foremost important thing to consider while investing in India is to have clarity about the purpose of such investments. This determines further requirements - such as cash flows, inheritance/estate planning, repatriation etc. from such also simplifies the asset allocation decision and the selection of products/vehicles. In the absence of such clarity, one gets caught in the 'latest' trend of investment products, or the preferred options of the dealer/distributor.A few common pitfalls to avoid:1. Lack of Clarity on Objectives2. Overexposure to Real Estate3. Ignoring Tax Implications4. Using Informal Channels(Investing through family or friends without a proper legal or advisory framework can result in misaligned decisions and, in some cases, loss of control or transparency)5. One-Size-Fits-All Approach: Assuming what works for resident Indians will work for NRIs can be misleading. NRIs have access to different investment opportunities and risks, and need tailored strategies that factor in currency exposure, repatriation rules, and global asset key is to approach India with professional guidance, clear intent, and a balanced view — combining emotional connection with financial discipline.A) There is no single, uniform money mindset that defines all NRIs. Their investment approach and financial behaviour vary significantly based on their stage of life, their country of residence, their financial goals, and evolving personal some common attributes do emerge. Many NRIs display a strong preference for financial prudence, long-term wealth creation, and portfolio diversification across strategies often reflect a balance between emotional ties to India and practical considerations driven by global exposure and on their objectives—whether it's retirement planning, wealth preservation, or legacy creation—their mindset evolves in alignment with their individual context and the macroeconomic essence, while there is no monolithic mindset, there is a consistent focus on strategic, informed, and goal-oriented financial planning.A) Rather than identifying 'favorite' asset classes in a broad sense, our approach is rooted in understanding the unique needs, objectives, and risk profiles of each NRI family. Investment decisions are highly individualised and based on their life stage, financial goals, and geographic said, most NRI portfolios typically comprise a diversified mix of asset classes — including listed equities, debt instruments, mutual funds, real estate, REITs, and alternative investment avenues such as private equity or structured products. This diversification helps balance growth, income, and capital preservation we don't prescribe investments based on popularity, but offer solutions tailored to each client's financial strategy and long-term vision.A) NRIs typically do not exhibit a strong bias toward any single sector. Instead, they prefer a diversified allocation across the broader Indian approach not only aligns with prudent investment principles but also reflects confidence in India's multi-sectoral growth attractiveness as an investment destination lies in its robust and resilient economy, offering opportunities across sectors such as financial services, technology, healthcare, manufacturing, infrastructure, and consumer than chasing sector-specific trends, most NRIs seek balanced exposure that captures the overall growth momentum of the country while managing risk investors are typically sector-agnostic but prioritize market-driven strategies with a strong focus on liquidity and Entrust, we've curated bespoke strategies for NRI clients — one of which is a dividend-yield portfolio we've used over the last five equity-oriented with a defensive tilt, focused on high quality dividend paying companies to ensure stable dividends are 100% repatriable under RBI norms, making this an effective income-generating and risk-mitigating strategy in today's volatile environment.A) Luxury collectibles such as art, vintage cars, and high-end watches often form a part of an NRI's lifestyle and legacy portfolio, but preferences in this space are highly choices are typically driven by individual taste, passion, and in many cases, a desire to preserve heritage or express some, interests in art, music, or cultural artifacts are closely tied to philanthropic values or legacy planning — supporting causes, institutions, or cultural preservation initiatives. Rather than being driven purely by investment returns, these assets often reflect emotional and aesthetic considerations, making them deeply unique to each family.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
20-05-2025
- Business
- Time of India
NRI Talk: Why NRIs are exploring Vietnam, Indonesia, and Africa for tactical growth, Sreepriya NS decodes
In a world where geopolitical shifts and economic realignments are rewriting investment playbooks, Non-Resident Indians ( NRIs ) are no longer limiting their portfolios to traditional hotspots like India, the US, or the UK. A new trend is quietly gaining momentum — one that points to emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern Europe. In this edition of NRI Talk, we speak with Sreepriya NS, Co-founder and Director of Entrust Family Office, to understand why globally savvy NRIs are increasingly eyeing these frontier economies for tactical growth . From favourable demographics and improving infrastructure to strategic diversification and early-stage investment opportunities , these regions are drawing attention for more than just their growth potential — they offer resilience, reach, and a new edge to global wealth strategies. Edited Excerpts – Q) How are NRIs looking at India as a long-term investment destination? And what are the other hot countries which they invest in? A) NRIs continue to view India as a compelling long-term investment destination, driven by its strong domestic consumption, demographic dividend, and a rapidly formalising economy. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Klik Di Sini Undo Many are drawn not just by the potential for financial returns, but by the emotional and strategic value of investing in their country of origin — whether that's through real estate, startups, listed equities, or legacy planning. Simultaneously, NRIs are increasingly diversifying their portfolios across geographies. Countries like Singapore, the UAE, the US, and the UK remain attractive due to their stable financial ecosystems, regulatory ease, and access to global investment opportunities. In particular, Singapore and Dubai are emerging as investment hubs due to their tax efficiency, business-friendly environments, and proximity to India. Live Events Additionally, many NRIs with family or business linkages abroad invest in local real estate and private funds, aligning these investments with their global lifestyle. There is also a growing trend of tactical investments in emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern Europe, offering high-growth potential. This trend reflects a balanced strategy: India continues to represent 'roots and returns', while global markets provide 'reach and resilience'. Key Statistics (as of Dec 2024): • Mutual Fund Investments by NRIs: Approx. USD 18–20 billion (~INR 1.6 lakh crore) • NRI Bank Deposits: Approx. USD 162 billion (~INR 13.7 lakh crore) across FCNR, NRE, and NRO accounts Q) There is big debate on social media about taxation. Help us understand why NRIs In Dubai, Singapore & Mauritius have to pay zero tax on mutual fund gains? A) In case of Mutual funds, (which as per SEBI regulation, are established as a trust) the gains from sale of a unit cannot be treated the same as gains from sale of share of a company. Hence under the Article 13 (5) of the DTAA with the above countries, the gains are taxable only in the country of residence of NRIs of such countries, and not in India. Q) How much money is moving in real estate/REIT/fractional investment? Is the right way? A) While specific data on NRI investments into REITs and fractional ownership models in India remains limited, the broader trend in real estate investment is significant. NRIs invested approximately USD 3.1 billion (INR 26,000 crore) in Indian real estate during the first half of 2024, following a total investment of around USD 13 billion in 2023. The growing interest in REITs and fractional ownership platforms reflects a shift toward more structured, accessible, and diversified real estate investment opportunities. These models offer NRIs the advantage of transparency, liquidity, and lower ticket sizes — making real estate participation more feasible without the operational complexities of direct ownership. While not a one-size-fits-all approach, REITs and fractional investments are increasingly seen as efficient, regulated, and scalable avenues for NRIs to participate in India's real estate growth story. Many NRIs continue to hold significant real estate assets in India, despite having settled abroad for decades. At Entrust, we've supported families like one from Hyderabad, now in the U.S. for over 35 years, with managing their residential and commercial properties. The real challenge often lies with the next generation, who face the burden of inheritance, tenant management, and compliance from afar. As a bespoke family office, we help simplify this complexity—offering peace of mind and practical solutions so they can focus on their lives overseas. Q) What are the big mistakes which NRIs should avoid when making investment in India? A) One of the biggest mistakes NRIs often make when investing in India is approaching it with the same mindset or assumptions they use in their resident countries. India is a dynamic, high-growth market — but it also comes with its own set of regulatory, taxation, and liquidity nuances. The foremost important thing to consider while investing in India is to have clarity about the purpose of such investments. This determines further requirements - such as cash flows, inheritance/estate planning, repatriation etc. from such investments. It also simplifies the asset allocation decision and the selection of products/vehicles. In the absence of such clarity, one gets caught in the 'latest' trend of investment products, or the preferred options of the dealer/distributor. A few common pitfalls to avoid: 1. Lack of Clarity on Objectives 2. Overexposure to Real Estate 3. Ignoring Tax Implications 4. Using Informal Channels(Investing through family or friends without a proper legal or advisory framework can result in misaligned decisions and, in some cases, loss of control or transparency) 5. One-Size-Fits-All Approach: Assuming what works for resident Indians will work for NRIs can be misleading. NRIs have access to different investment opportunities and risks, and need tailored strategies that factor in currency exposure, repatriation rules, and global asset allocation. The key is to approach India with professional guidance, clear intent, and a balanced view — combining emotional connection with financial discipline. Q) What is the money mindset which NRIs follow? Are there any common attributes? A) There is no single, uniform money mindset that defines all NRIs. Their investment approach and financial behaviour vary significantly based on their stage of life, their country of residence, their financial goals, and evolving personal circumstances. However, some common attributes do emerge. Many NRIs display a strong preference for financial prudence, long-term wealth creation, and portfolio diversification across geographies. Their strategies often reflect a balance between emotional ties to India and practical considerations driven by global exposure and opportunities. Depending on their objectives—whether it's retirement planning, wealth preservation, or legacy creation—their mindset evolves in alignment with their individual context and the macroeconomic environment. In essence, while there is no monolithic mindset, there is a consistent focus on strategic, informed, and goal-oriented financial planning. Q) Which investment options or asset classes are hot favourites of NRIs and why? A) Rather than identifying 'favorite' asset classes in a broad sense, our approach is rooted in understanding the unique needs, objectives, and risk profiles of each NRI family. Investment decisions are highly individualised and based on their life stage, financial goals, and geographic exposure. That said, most NRI portfolios typically comprise a diversified mix of asset classes — including listed equities, debt instruments, mutual funds, real estate, REITs, and alternative investment avenues such as private equity or structured products. This diversification helps balance growth, income, and capital preservation objectives. Ultimately, we don't prescribe investments based on popularity, but offer solutions tailored to each client's financial strategy and long-term vision. Q) Which sectors are more preferred when NRIs look to invest in India? A) NRIs typically do not exhibit a strong bias toward any single sector. Instead, they prefer a diversified allocation across the broader Indian market. This approach not only aligns with prudent investment principles but also reflects confidence in India's multi-sectoral growth story. India's attractiveness as an investment destination lies in its robust and resilient economy, offering opportunities across sectors such as financial services, technology, healthcare, manufacturing, infrastructure, and consumer goods. Rather than chasing sector-specific trends, most NRIs seek balanced exposure that captures the overall growth momentum of the country while managing risk effectively. NRI investors are typically sector-agnostic but prioritize market-driven strategies with a strong focus on liquidity and repatriation. At Entrust, we've curated bespoke strategies for NRI clients — one of which is a dividend-yield portfolio we've used over the last five years. It's equity-oriented with a defensive tilt, focused on high quality dividend paying companies to ensure stable returns. Notably, dividends are 100% repatriable under RBI norms, making this an effective income-generating and risk-mitigating strategy in today's volatile environment. Q) What about luxury items – art, cars, watches which of the themes are hot favourites? A) Luxury collectibles such as art, vintage cars, and high-end watches often form a part of an NRI's lifestyle and legacy portfolio, but preferences in this space are highly personal. These choices are typically driven by individual taste, passion, and in many cases, a desire to preserve heritage or express identity. For some, interests in art, music, or cultural artifacts are closely tied to philanthropic values or legacy planning — supporting causes, institutions, or cultural preservation initiatives. Rather than being driven purely by investment returns, these assets often reflect emotional and aesthetic considerations, making them deeply unique to each family.
