• Inheritance of property from parents (in India) to a US Citizen on OCI

Hello All,
 I am US Citizen with OCI. I also bought agricultural land before i got the green card. I am going to inherit some parents owned commercial and agricultural property. I have Aadhar and pan card.
 I do not know where to start on transferring the inheritance from Parents to me. I am in the US and my parents are in India.
 Please let me know where to start and the steps i need to take to complete this.
 I also have the following question.

 1.	If I have a NRI registered will in US for properties in india. Will this help in transferring the ancestral properties from india from parent’s will to this one.
2.	Can the NRI registered will include movable assets (line back accounts)?
3.	After registered will was created by parents in india, if I get immovable property as a gift from parents through will. Will this help in avoiding tax?
4.	What is property partition deed or family settlement?
5.	I have given the power of Attorney to my parents. Can this help for inheritance?
6.	Do I need to probate the will? 
7.	After creating the will and registering it. To execute the will, can my parents just gift me the property as per the will In couple of months after registering the will, without probate.
8.	Can I ask my parents to transfer immovable, cash, movable properties through gift deed. Then bring the ancestral and agriculture land through registered will.
9.	What does this mean? Gifts can be tax exempted if relatives donate them at the time of marriage or property rights gained through inheritance or will; this clause has been stated in Section 12AA of the Income Tax law. If I get the property from my father through gift, do I need to pay taxes?

 I will appreciate the response.

Thanks,
Kumar
Asked 3 years ago in Property Law
Religion: Hindu

15 answers received from multiple lawyers

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15 Answers

1) apply for probate of will 

 

2) probate is judicial proof that will is genuine 

 

3) will can include movable assets like bank accounts also 

 

4) there is no tax on inheritance of property or by gift deed 

 

5) deed of partition or family settlement for division of property has to be stamped and registered 

 

6) parents can during lifetime execute gift deed for property 

 

7) you don’t have to pay taxes on gift deed 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations


Following are the ways in which ancestral properties are transferred to legal heirs…

  1. By partition of properties among legal hers either through court of by registration of a partition/settlement deed.
  2. By registration of gift/relinquishment deeds.
  3. By execution of will. If will is executed, property will be transferred to beneficiaries after the demise of testator/will maker.

You can choose any of the following means to get the properties transferred in your favour. No permission is required by PIO/NRI for receiving property through partition/gift/will as stipulated by Rule 24. (NDI) from RBI or Income Tax Authority.

  1. A will registered abroad with respect to movable and immovable properties in India is valid and enforceable in India.
  2. A will executed by NRI can include movable assets like bank FD/insurance claims.
  3. There is no tax implication for inheriting, receiving ancestral You need not pay any CGT or other tax.
  4. A partition deed and family settlement deed is document registered among legal heirs dividing properties on agreed terms. There is minimum stamp duty on registration of such documents. If the State in which properties are located is known, exact amount of stamp duty and other charges can be known.
  5. Parents don’t need any POA from you to transfer properties to you, they can do it directly.
  6. It depends in which State the properties are situated.
  7. Transfer of properties through will takes place only after death of testator. Gift/relinquishment deed are registered by family members when they are alive.
  8. It is safe and better option to get the properties transferred through gift/relinquish deeds as you have to wait till the death of testator to get the properties transferred to you.
  9. Mention Section pertains to gifts made by relatives to other relatives. It has nothing to do with transfer of properties among legal heirs. No income tax is payable by you as it is transfer of ancestral

 

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

1. You can obtain probate of Will through a court from that country, get the certified copy of the court decree apostilled and enforce the Will in India as per the procedures for that in India.

2. Yes, the the movable properties also can be bequeathed in the Will.

3. There is no tax payable on acquisition of immovable properties through gift deeds.

4. It would be better that a registered settlement deed is made to excess avoid stamp duty.

5. Power of attorney to your parents cannot help you to inherit the properties from your parents itself.

6. The probate of Will would be legally valid process to acquire the property bequeathed through a Will without much legal hassle.

7. Don't get confused, the Will is different from gift deed.

If your parents want to transfer their property to you they can straightaway execute a registered settlement deed instead of going for a Will and again by transferring the same through a gift deed.

8. You can do it.

9. The gift from your father do not attract tax, however you may have to pay tax if you reinvest that amount in a differnt investment scheme.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Dear client, any property of yhe paremts will get transferred to the child until and unless it is a self acquired property with a will to the contrary.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

The will is applicable if registered

Yes POA is valid but needs to be registered in India 

Yes it can be gifted to you 

Yes only for blood relatives 

 

 

 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1) you cannot receive agricultural land as gift from your father whether it is ancestral or self acquired 

 

2) on father demise you would inherit agricultural land .enclose father death certificate.apply for mutation of land in your name . Enclose legal heir certificate 

 

3) you don’t need RBI approval for inherited agricultural land 

 

4) there are no short cuts for mutation of land in your name on father demise 

 

5) your father can execute will bequeathing agricultural land to you 

 

6) deed of partition can be executed for division of agricultural land 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You cannot acquire agricultural property either by sale or by gift from your parents, though you can inherit agricultural property as a successor in interest/legal heirs after the lifetime of your parents.

For inheritance of agricultural property ther is no requirement to obtain permission from RBI, the only condition for such inheritance is that it can be inherited after the lifetime of the owner of the property by virtue of legal heirs to the deceased.

You cannot inherit the agricultural property from your parents during their lifetime.

Acquiring an agricultural property by a NRI/OCI on lease is also prohibited.

If you want to be confirmed about the property to be transferred to your name now itself then you can ask your parents to transfer the same by a testamentary disposition, however it will take effect or can be enforced only after the death of the testator.

For your information even the registered Will can be cancelled or modified by the testator during his/her lifetime, therefore there is no guarantee  on that.

If the land was bought on your name by a registered sale deed during the time of your minority by age and when you were an Indian citizen, then you do not have to get it transferred to your name because after attaining the age of majority you become an absolute owner and your father's guardianship will become infructuous.

So you may revert with more clarity on this point for more proper opinion on this point.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. You cannot acquire agricultural property either by sale or by gift from your parents, though you can inherit agricultural property as a successor in interest/legal heirs after the lifetime of your parents.

2. For inheritance of agricultural property ther is no requirement to obtain permission from RBI, the only condition for such inheritance is that it can be inherited after the lifetime of the owner of the property by virtue of legal heirs to the deceased.

3.You cannot inherit the agricultural property from your parents during their lifetime.

4. Acquiring an agricultural property by a NRI/OCI on lease is also prohibited.

5. If you want to be confirmed about the property to be transferred to your name now itself then you can ask your parents to transfer the same by a testamentary disposition, however it will take effect or can be enforced only after the death of the testator.

For your information even the registered Will can be cancelled or modified by the testator during his/her lifetime, therefore there is no guarantee  on that.

6. If your brother wants to transfer his property by a gift deed to your father, he can very well do so, however your father cannot immediately transfer that property to your name, but he can add this property in his Will bequeathing this agricultural property to your name along with any other property he may desire to transfer to your name by the Will..

7. Your father can very well transfer his plot i.e., the housing  vacant land to your name, there is no embargo on it.

8. Your brother cannot transfer the same proeprty twice, once by settlement deed and net time by a gift deed.

In any case he cannot transfer agricultural proeprty to your name though you can do so on the property lying on your name.

9. For properties in India, a foreign will, once proved and deposited in a court of competent jurisdiction, or a properly authenticated copy of the will and letters of administration will be recognised by the Indian Courts.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

It is always advisable to apply for probate of will 

 

2) probate is judicial proof that will is genuine 

 

3) engage a lawyer for drafting will 

 

4) in will father can bequeath agricultural land to you 

 

5) will should be attested by 2 witnesses 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

A testamentary disposition is any gift of any property by a testator under the terms of a will.

Testamentary disposition is a disposition or transfer of property by the testator by gift, deed, or will, but the disposition does not become effective until after the testator's death, and the testator retains essentially full control of the property during their lifetime.

By a Will you are acquiring the property after the death of the testator, but if the property owner dies intestate then it is called as intestate succession/inheritance 

In any case you have to wait till death of the owner of the agricultural property in order to acquire it as a NRI/OCI/Foreign citizen.

Deed of partition by the property owner for his agricultural property cannot be done by including his NRI son, not at least during his lifetime.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Dear client 

  1. Yes, as an OCI card holder, you can receive agricultural land/farmhouse as a gift from your father (citizen of India).
  2. If you can receive the agricultural land/farmhouse from your father only through inheritance, the process involves obtaining a succession certificate or probate of will. The documents you may need to prepare include your father's death certificate, proof of your relationship with your father, and other relevant documents. RBI approval is not required for inheriting agricultural land/farmhouse in India.
  3. Yes, you can lease the ancestral agricultural land/farmhouse from your father for less than 5 years. This can be beneficial to you when you inherit the property eventually, as it can provide you with income in the interim.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Probate can be done only on father demise 

 

2) probate is not mandatory except in Bombay ,Calcutta ,Madras 

 

3) father can change the will during his lifetime 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

 The probate of Will can take place only after the death of the testator, i.e., the person who made this Will.

For filing probate petition, you need to be present before court, or you can depute someone representing you by a power of attorney deed, to conduct the case in your absence.

However you will be required in person before the court for deposing evidence.

2. You have not understood the concept of probate.

'Probate' means the copy of a Will certified under the seal of a court of competent jurisdiction with a grant of administration of the estate of the testator.

You can obtain probate of the Will only after the death of the testator and not before that.

The testator can very well amend the Will or add or delete certain items in the Will or even can cancel the Will during his lifetime even it it was prepared on a registered document.

If the testator decides to cancel the Will or wants to make any changes in the Will, then the named beneficiary cannot claim or challenge the same as a right.

 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Yes it can be transferred to you through will of father 

if he is alive and want to change his will he can do that 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

If your father creates a will to transfer the farm land/agriculture land to you and then registers and probates it in the court, you do not need to be physically present while filing the probate. However, you may need to provide certain documents, such as your OCI card, to prove your identity and citizenship.

 

Your father can make updates to the will, but he must do so in accordance with the relevant laws and regulations in India. Any changes made to the will after it has been probated may require a new probate process or a court order, depending on the nature of the changes. It is recommended that you consult with a lawyer in India to ensure that any updates to the will are done in compliance with the applicable laws and regulations.

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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