Cross-Border Estate Planning: US assets, repatriation and wills for returning Indians | All you need to know

You are an Indian citizen currently residing in the US and are planning to move back to India to settle here permanently. You own property and other assets in the US and have already executed a will covering these assets. Once you relocate, will you be required to bring these assets -- or the proceeds from selling them to India? Additionally, will you need to make a new will?

Let's answer this question:

If you have acquired assets (such as immovable property, shares, etc.) or earned income outside India while residing overseas, you will not be required to liquidate these assets or repatriate the sale proceeds or income to India when you move back from the US. This also includes assets inherited by you while you were residing abroad. You may continue to hold, transfer and invest in these assets and the income even after becoming an Indian resident.

This key principle is derived from Section 6(4) of the Foreign Exchange Management Act, 1999, which protects the holding of assets by ‘persons resident in India’ that were acquired, held, or owned while the individual was a ‘person resident outside India,’ and also allows such assets and their income to be transferred or invested abroad.

However, once you return to India and earn new income overseas that is not linked to the assets you held while abroad, you will be required to repatriate it to India within 180 days.

Regarding making a fresh will when you return to India, it's advisable to make a separate will for your Indian assets (existing or future) while your US will covers US assets.

Generally, it is advisable for individuals with assets in multiple countries to create separate wills for each jurisdiction to ensure compliance with that jurisdiction’s legal formalities and requirements. Additionally, designating different executors for assets in each jurisdiction can simplify estate administration and help avoid potential complications after death.

The above is based on a general interpretation, so consult a lawyer to understand how it applies to your case, especially with cross-border assets and estate planning involved.