While foreign investments in India’s real estate have surged in recent years, a lack of foresight in terms of planning for the transfer of assets after one’s passing prevails
As the Indian diaspora continues to thrive globally, numbering around 33 million individuals residing outside their homeland, the importance of succession planning for overseas Indians cannot be overstated. Among them, approximately 3.5 million live in the UAE, and an additional two million in the UK, maintaining significant ties with India through family connections and shared ownership of properties.
Despite contributing substantially to India’s real estate market, many members of the diaspora, particularly those in the UK and the UAE, appear to overlook the crucial aspect of succession planning. While foreign investments in India’s real estate have surged in recent years, a lack of foresight in terms of planning for the transfer of assets after one’s passing prevails.
The depreciation of the Indian rupee has sparked increased demand for residential property among the diaspora, particularly from individuals in countries with stronger currencies. The implementation of the Real Estate Regulation Act in 2016 has instilled confidence in the market, yet the oversight of succession planning remains a common issue.
While overseas Indians often seek advice from investment professionals during property acquisitions, the transient nature of life underscores the need for a comprehensive approach. Legal and well-structured succession documents are essential, ensuring their validity not only in India but also in the respective countries of residence, such as the UK and the UAE.
The significance of succession planning for overseas Indians is paramount. By addressing the legal intricacies and planning for the future, the diaspora can safeguard their assets and ensure a smooth transition for their loved ones, reinforcing the enduring ties between the Indian diaspora and their roots
Navigating the complex legal landscapes in different countries poses unique challenges, especially when it comes to wills, inheritance, trusts, and property disposition. The diaspora must be aware that the laws governing property-related rights in India are often dictated by personal laws applicable to the owner, based on their religious affiliation.
For instance, Hindu law governs Hindus, Sikhs, Jains, and Buddhists, while Islamic law or Sharia applies to Muslims. Christians adhere to Christian personal law, and Zoroastrians have their distinct legal framework. Understanding and aligning succession plans with these diverse legal landscapes is crucial for ensuring a seamless transfer of assets across borders and securing the rightful inheritance for chosen beneficiaries.
The significance of succession planning for overseas Indians is paramount. By addressing the legal intricacies and planning for the future, the diaspora can safeguard their assets and ensure a smooth transition for their loved ones, reinforcing the enduring ties between the Indian diaspora and their roots.
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