All you need to know about the Inheritance law in India

Inherited property disputes are very common in our country. Before we understand the inherited property meaning, let us first look at the meaning of an heir. According to the inheritance law in India For NRI, heirs will include all the people who are legally eligible to inherit property. Inherited property means receiving any property from a deceased person. Even a non-resident Indian (NRI) or a person of Indian origin (PIO), is permitted to inherit any immovable property in India. While the inheritance rules are not very complex for the natural citizens of India, they can be quite complicated for the Indians who are living abroad.  Read on to know more.

What is Inheritance?

Inheritance means the transfer of rights, titles, properties to a legal heir of a deceased person. The pain of losing a loved one becomes worse if one gets involved in an inheritance dispute. Hence, it is very crucial to understand the inheritance law in India. The spouse and children are legally the immediate heirs of a deceased person.

The rights of inheritance in India

There are two ways in which an Indian can inherit property-

1.     Through a Will

2.     Through the laws of succession in case a person had died intestate – If a person has died intestate or without creating a Will, then the property will be divided among the legal heirs identified by the applicable inheritance laws in India.

Can NRIs and PIOs inherit property in India?

The NRIs or PIOs can inherit any immovable property, meaning any property which cannot be moved from one place to another in India and can be residential, commercial, or even agricultural.  Any transfer of ownership to the NRIs and PIOs must be in accordance with the Foreign Exchange Management Act (FEMA). 

Types of Inherited Property

1.     Ancestral Property – according to the inheritance law in India, sons, and daughters have the right to ancestral property from the time of their birth.

2.     Self-Acquired property - unlike ancestral property, the sons and daughters do not have a birth right over the self-acquired property of their father or mother. They have the right to Will it to anyone, not necessarily their children.

 

Under the Muslim laws of inheritance, there is no difference between self-acquired and ancestral property.  The succession laws are the same for both. However, the laws will be different for the Shias and Sunnis. The Hindu Succession Act will cover the inheritance among the Sikhs, Jains, Buddhists as well.

 

Legalities of a property transfer

The death of a family member will not ensure the inheritance of property.  The property name must also be transferred and some legal formalities have to be completed before the transfer of title can happen.  For a property, where the owner died without creating a Will, a settlement document has to be provided by the legal heirs. If no settlement can be reached, the prevalent succession rules will apply.  In case there is a Will, a single heir will need to submit a copy of the Will, death certificate, and the property papers for the transfer of ownership.  If there are multiple heirs, the Will has to be registered as per the inheritance law in India.

 

Takeaway

It is important to understand the inheritance law in India because property disputes are very common here and the rights of the legal heirs should be protected. Inheritance laws are crucial because the property should be passed on to the rightful legal heirs of a deceased person and they will ensure that the property has not gone to any trespassers. Proper knowledge of the Inheritance law in India will be very helpful in avoiding any kind of avoid legal troubles, family fights, or property disputes.