The housing society managing the apartment refused to transfer ownership without a legal heir certificate. “They asked for an official proof of entitlement to hand over the keys and update their internal records… without a Will or legal heir certificate, they said they could face legal liability,” he recalled.
The same demand came from the bank for FDs and demat holdings.
“For nine months I was coordinating with lawyers, filing affidavits, and even had to travel to India multiple times to just get a legal heir certificate,” he said.
For NRIs, especially those unable to travel at short notice—like H-1B visa holders in the US—his experience underscores the importance of having a Will.
When delay becomes permanent
Take the case of a US-based NRI who lost his father in 2016 and is still unable to claim bank deposits worth ₹1.7 crore, dividends of ₹36 lakh, and a Hyderabad property valued at ₹3.6 crore. He moved to the US in 2015 and visited India in 2017 only to perform his father’s last rites.
“I couldn’t obtain the legal heir certificate or other documents remotely and now face a long legal battle as the deposits have gone to RBI’s Depositor Education and Awareness Fund (DEAF) and dividends to Investor Education and Protection Fund (IEPF),” he said.
Both DEAF and IEPF are government bodies that manage unclaimed bank deposits, shares and dividends. Deposits untouched for 10 years are moved to DEAF, while dividends, shares, and matured deposits unclaimed for seven years go to IEPF. Experts say claiming such funds involves an even more cumbersome legal process.
“The delay in initiating claims, along with bureaucracy, verification and attestation requirements can take another 6-12 months to recover assets from DEAF or IEPF. These bodies demand extensive documentation and claimants often have to coordinate with multiple financial institutions,” said Shraddha Nileshwar, head of Will and estate planning at 1 Finance, a personal finance institution.
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Paperwork overload
Without a Will, banks, depositories, and mutual fund houses demand multiple documents—succession certificates, affidavits, no-objection certificates (NOCs), and indemnity bonds—to establish rightful heirs. The exact requirements across different institutes vary, depending on the asset value and the guidelines of the respective regulators.
“Succession or legal heir certificate is needed for most assets to prove entitlement,” explained Vishnu Chundi, founder, AasaanWill, online Will writing platform.
“Additionally, affidavits may be asked from each family member to establish who the legal heirs are and NOCs are required when a property has multiple potential heirs, so the co-heirs consent to the intended distribution,” Chundi added.
Getting succession certificate alone for all heirs can cost atleast ₹1.5 lakh in legal and court fees. In Delhi, the court fee is 4% of the estate’s value, as per the Court-Fees (Delhi Amendment) Act, 2012.
“The petition for Succession Certificate needs to be lodged at the competent court of jurisdiction. The cost mainly includes the lawyer’s fee, which depends on their experience and the court fee, which varies by state. The court fee is a percentage of the asset’s value, with an upper limit in some states,” said Rajat Dutta, founder of Inheritance Needs Services. For instance, in Delhi the court fee for a succession certificate is 3% of the total estate value, as per the Court-Fees (Delhi Amendment) Act, 2012.
Dutta explained, “In cases where there is no Will but a nominee exists, a petition for Letters of Administration (LOA) must be filed in the court. The court appoints an administrator who will distribute the assets according to succession laws. Only after this LOA, can the administrator approach the nominee to release the assets.”
For NRIs, this adds another step often involving legal coordination from abroad and costs. A properly executed Will eliminates this process and most documents.
Dutta noted that although regulators such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), and Insurance Regulatory and Development Authority of India (Irdai) have clearly laid out procedures for transferring movable financial assets, officials at banks, depositories, asset management companies (AMCs), and insurance firms often ask for additional documentation, causing unnecessary delays and hurdles in transmitting these assets to NRIs.
“These challenges only exacerbate in the absence of a Will.”
The case for a Will
With a probated Will, the executor– the person appointed to carry out the instructions– approaches banks or institutions directly and assets are transferred as per the Will’s terms, said Nileshwar.
“While ancillary KYC of heirs is still required, the process is far lighter than intestate claims. The heir can even appoint a Power of Attorney (POA) holder in India to handle it,” she said.
With a probated Will, you just need the basic documents like the death certificate of the testator, property ownership documents, such as sale deed, title deed, land records and bank and investment documents like account statements, mutual fund folios, demat account details, as per Chundi.
Not transferring the assets in time not only runs the risk of assets being transferred to IEPF and DEAF, but also carries tax implications. For instance, property tax in most states is paid annually but without mutation, the municipal corporations keep levying penalty and interest to the previous owner (deceased in this case).
Dutta pointed out that let-out properties are also vulnerable to encroachments and disputes, as tenancy laws in India often grant strong protections to tenants, making it difficult for owners to reclaim possession in such cases.
Similarly, MFs and bank deposits may continue to generate dividends or interest during the period between the investor’s death and the asset’s transmission.
“Legal heir must pay tax on such income and report it in the ITR filed on the deceased’s behalf. By failing to comply, heirs can face scrutiny from the Income Tax Department or risk paying higher taxes due to incorrect reporting,” Chundi said.
Probate and power of attorney
An important step in writing a Will is to probate it–a court process that validates a Will. Though not legally mandatory, financial institutions demand a probated Will as it legalises its efficacy. Those not probated are easily contestable in courts.
“If a Will is contested, it can become challenging for an NRI beneficiary as they may be required to appear in court in person,” said Dutta.
Having a probated or registered Will and a local executor spares NRIs repeated India visits.
Having a probated or registered Will and a local executor spares NRIs repeated India visits. “NRI heirs can authorise a trusted person in India through a notarised and apostilled POA, allowing the representative to complete paperwork and deal with institutions locally,” said Nileshwar.
An apostille POA is a document verified by the government of the country where NRI is based for use in India.
For NRIs, estate planning isn’t just a financial safeguard—it’s a way to prevent prolonged distress. Distance, time zones, and legal hurdles turn even a simple inheritance into a bureaucratic maze. A Will, experts say, is the single document that can make the difference between months of paperwork and peace of mind.
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