• Inheritance of property from an Indian citizen by an American citizen with OCI status

I’m a US citizen with oci status. My fathers cousin (who is 90 years old bought a 1.5 acre beach front property with a house on it and some coconut trees classified as an agricultural property even though it’s not used for agricultural purposes) with his own earnings. He wants to create an official will prepared by a lawyer and registered that will transfer his 100 % ownership of that beachfront property to me upon his death. In other words, I will own the property by myself after his death. My question is can he will it to me even though I’m a US citizen with oci status? Also he has 4 children and a lot of grandchildren. Can they contest the will? Please note that he has already divided and given his inherited properties that he had owned since his parents death to all his children. This beachfront property that he wants to will to me was bought by his own earned income. Can his children/grandchildren contest the will? If so what are their chances of winning in court? If there is a chance that they will win in court can I alternatively have the Property mortgaged In my name (I’m the bank) so that if they ever win then they would have to pay me the mortgage amount in a lump sum?
Asked 2 years ago in Property Law
Religion: Hindu

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14 Answers

Your father can execute will bequeathing beach front property to you 

 

2) your siblings can contest the will 

 

3) one of main grounds of challenge is deceased testator was not mentally fit 

 

4) enclose medical certificate that father is mentally fit at time of execution of will 

 

5) your father during his lifetime can mortgage the property 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. Inheriting an agricultural property by an American Citizen holding OCI status is legally valid, as per various decisions of the Hon'ble Supreme Court of India.

2.  Your Cousin would be well within his legal rights to bequeath his self acquired agricultural property to you during his lifetime.

3.  His children and grandchildren may contest the WILL and if they do so, it has to be countered effectively by the contents in the WILL.  

4.  If the WILL is drafted without any chances of ambiguity in it and it should stand the test of time, then inspite of challenging it by his children and/or grandchildren, the chances of their winning in Court may not be in their favour.

5.  For mortgaging agricultural property by a OCI Card Holder, you need to obtain specific permission from the jurisdictional Reserve Bank of India.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

When it comes to inheritance of property in India by a foreign national or a person of Indian origin, there are specific regulations and restrictions under the Foreign Exchange Management Act (FEMA) and other laws. I'll address your queries step by step:


  1. Ownership by OCI: An Overseas Citizen of India (OCI) can inherit any immovable property in India, be it agricultural, residential, or commercial. However, while you can inherit and own agricultural land, you cannot purchase it directly. In your case, since you are inheriting it through a will, it's permissible.

  2. Will & Its Contestability: Your father's cousin can absolutely will his property to you. Having a well-drafted and registered will would strengthen the legitimacy of the transfer. But, like in many jurisdictions, a will can be contested in India. Common grounds for contesting include:

    • The testator (person creating the will) was not of sound mind when the will was created.
    • The will was made under duress or undue influence.
    • The will is forged or tampered with.
    • The testator did not follow the proper procedure in drafting or executing the will.

Given the familial relationship and the fact that your father's cousin has children and grandchildren, there's a likelihood they may contest the will, especially if they feel they have been unfairly excluded.


  1. Chances in Court: It's hard to predict outcomes in legal cases since they depend heavily on the specifics. But if the will is drafted correctly, clearly specifies the intentions of your father's cousin, and if it can be established that he was of sound mind and not under undue influence when making the will, the chances of it being upheld are better. It would also be helpful if there are witnesses (preferably neutral parties) to the will's execution.

  2. Mortgaging the Property: This is a complex strategy and might not provide the security you're hoping for. If your father's cousin mortgages the property to you (with you acting as the lender), and his heirs later successfully contest the will, they'd inherit the property subject to the mortgage. This doesn't necessarily mean they would have to repay the mortgage immediately. Also, creating a mortgage for this purpose might be seen as an attempt to circumvent the law, which can have its own complications.

  3. Precautionary Measures:

    • Ensure the will is drafted by an experienced attorney and the reasons for bequeathing the property to you are clearly laid out.
    • It might also be a good idea for your father's cousin to discuss his intentions with his immediate family to mitigate any surprises and potential disputes later on.
    • Consider the option of a "testamentary trust" where the property is held in trust with specific instructions on its use, disposal, or management.

Finally, given the complexities involved, it's highly recommended you consult with a property lawyer who can provide guidance tailored to the specific circumstances.

 

Muraleedharan R
Advocate, Trivandrum
386 Answers
2 Consultations

- As per law, an OCI can inherit any immovable property in India, whether it is residential or commercial or an agricultural land or a farmhouse.

- Hence, your fathers cousin being the owner of a self acquired property can registered a Will in your name without getting consent of any of other family members  

- No other family members are entitled to get the share in that property , and hence they cannot challenge that will

- The said inherited property cannot be mortgaged as the Will can only be executed after demise of him. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Acquisition and transfer of immovable property in India by NRIs / PIOs / Foreign Nationals of Non-Indian Origin is regulated in terms of Sub-sections (3), (4) and (5) of Section 6 of the Foreign Exchange Management Act, 1999 read with Notification No.FEMA 21/2000-RB dated May 3, 2000.

Under Regulation 2 A (i)  PIO can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India. PIO includes OCI. The Rule absolute. It is possible only after conversion of land to NA. Even any mortgage of such is not valid. Purpose of law cannot be defeated by private arrangement.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

If WILL is duly executed and registered, it will be valid.  Child can contest the WILL, but of no success. 

Yes OCI holder can inherit property except agriculture land. 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

The cousin of your father can transfer his self acquired property to anyone of his choice or decision.

If he would like to transfer the property to you name by a registered will, he can very well do so and also attach a medical certificate stating that he was medically and mentally fit at the time of signing the Will in the presence of two witnesses.

You make sure that he clearly mentions that this is a self  acquired property, that he is transferring it to your name out of love and affection, that he had already given properties to his own children at so and so place.

The above precautionary steps will break the challenge made against the Will, if any.

Please note that the Will can be enforced only after the death of the testator, hence you may be able to mortgage the property only after the Will is enforced.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Will can be in Kannada or English language 

 

2) legal fees for drafting will vary depending upon lawyer engaged by you 

 

3) you can contact the lawyer directly after obtaining contact details from the website 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can get a Will prepared in the language you prefer.

There is no bar to prepare the Will in a particular language.

Your recitals in the Will should clearly convey your intention of bequest made therein

You can contact any advocate of your choice either from this website or outside 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. Thank you for your appreciation. If you would like me to draft a WILL, happily I would be doing it . You can contact me through Kanoon.com to get it done in Kannada or in English.

2.  The charges would be normal.  

3.   Preferably in Kannada. 

 

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

- You can contact them for the said work done , after booking a call from this website .

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

1. a person can make a bequest of his property to any person of his choice by his Will

2. it is not necessary that the beneficiary in the Will have to be the legal heirs of the person

3. so the person can make a bequest even in favour of a foreigner 

4. if the person has already given some properties in his lifetime to his children/grandchildren, then that factum ought to be mentioned in the Will to justify the exclusion of the children/grandchildren from the Will and to avert any possibility of the Will being challenged on the ground that it is unnatural since it unjustly excludes the legal heirs

5. the Will is not required to be registered under the law. Even if it is registered, the formal proof of due execution of the Will would still have to be discharged by the person who relies on such Will or who propounds such Will. Registering the Will does not give it any more legitimacy than when the Will would be unregistered. So registration not being the requirement of law, can be skipped completely 

6. asking questions like - what are the chances of the heirs winning - is completely illogical since that cannot be predicted by an advocate. What if the advocate says that there is no chance of the heirs winning, but the heirs in fact win the case? In that case will you hold the advocate responsible? Predicting is the job of an astrologer and not of an advocate.

7. mortgaging the property with the proposed legatee will not serve any purpose. In fact it will backfire. So it will be a futile exercise.

8. the Will can be made in any language known to the testator. It has to be signed by the testator in front of 2 witnesses. It is not necessary that both the witnesses are present together at the time the testator signs his Will. The requirement is that the witness must have seen the testator sign his Will in the presence of the witness. 

9. the witnesses can also be any person who know the testator and who can depose and testify that when he testator signed his Will he was in a sound and disposing state of mind

10. attaching a doctor's certificate to the Will to show that the testator has a sound state of mind, is completely optional and is not a requirement under the law

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Dear client,  a non-resident Indian or an OCI cardholder can acquire any immovable property in India (including agricultural land) by way of inheritance from a person resident in India or from a person resident outside India who had acquired the property in accordance with the provisions of the exchange

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

If the rights of grandchildren needs to be decided through will for ancestral property then you have to approach court for necessary permission of the court

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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