Estate Planning forIndian-National Families

Indian families in Texas need a US-based estate plan covering all US assets (home, bank accounts, retirement accounts, investments) plus coordination with any Indian assets. Key documents include a revocable living trust, pour-over will, durable power of attorney, medical power of attorney, and HIPAA authorization. For families with assets in India, a separate Indian will is strongly recommended.

The Hindu Succession Act governs inheritance of property located in India, while Texas law governs property located in Texas. They operate independently based on asset location. Your US estate plan controls US assets regardless of your religion or national origin. For Indian properties, the applicable succession law (Hindu, Muslim, Christian, or secular) depends on your religion and the property's location in India.

Yes. NRIs (Non-Resident Indians) can own residential and commercial property in India (but not agricultural land or plantation property without RBI permission). In the US, there are no citizenship restrictions on property ownership. However, holding property in both countries creates estate planning complexity — you need coordinated plans in both jurisdictions to avoid double taxation and probate in multiple courts.

Key considerations include: worldwide income taxation for US tax residents, Foreign Bank Account Reporting (FBAR) for Indian accounts exceeding $10,000, FATCA reporting for Indian financial assets exceeding $50,000, no unlimited marital deduction for non-citizen spouses, potential double taxation on Indian assets without treaty relief, and reporting requirements for gifts received from foreign persons exceeding $100,000.

HUFs are an Indian tax concept not recognized by US tax law. While maintaining an existing HUF for Indian tax benefits may be advantageous, creating a new one solely for US tax planning has no benefit and could create complex reporting obligations. Indian families in the US should focus on US-based structures (LLCs, trusts) for tax efficiency while maintaining any existing Indian arrangements through coordinated planning.