Two Countries,One Unified Plan

Yes. The US and India do not have an estate tax treaty, so assets in each country are governed by different laws. US-situated assets require a US estate plan (will or trust), while Indian assets should be covered by an Indian will. Having coordinated plans in both jurisdictions prevents conflicts, double taxation, and ensures your wishes are honored in both countries.

If you are a US citizen or domiciled resident, your worldwide assets — including property, bank accounts, and investments in India — are subject to US estate tax. The 2024 federal estate tax exemption is $13.61 million. If your global estate exceeds this, US estate tax rates of 18-40% apply. India currently has no inheritance tax, but state stamp duties may apply on property transfers.

An NRI (Non-Resident Indian) will is a will executed under Indian law that covers your assets located in India. While a US will can technically cover Indian assets, enforcement is complex and slow. A separate Indian will streamlines the process, avoids probate delays in Indian courts, and ensures your Indian properties transfer according to your wishes without US court involvement.

You can transfer Indian property through a registered gift deed, a will (probated in Indian courts), or a family settlement deed. Each has different tax implications in both countries. Capital gains tax in India may apply on transfers, and the US recipient must report the foreign gift if it exceeds $100,000. An attorney experienced in both US-India tax law is essential.

A US trust can own certain Indian assets, but there are significant restrictions under FEMA (Foreign Exchange Management Act) regulations. Indian real estate cannot be directly held by a foreign trust. However, financial assets, mutual funds, and certain investments can be structured through the trust. Coordinating with attorneys in both countries is critical to ensure compliance.