How the law is organised
India has no single law of succession. Hindus, Buddhists, Jains and Sikhs are governed by the Hindu Succession Act 1956, amended in 2005 to make daughters coparceners in ancestral property on the same footing as sons. Christians and Parsis fall under the Indian Succession Act 1925. Muslims are governed by personal law, with fixed shares and the one-third limit on bequests. Estate duty was abolished in 1985, so there is no inheritance tax, though capital gains apply on later sale.
For anyone in India, the most valuable step is to verify the beneficiaries recorded on pensions, retirement plans and life policies: they prevail over a will, fall outside the estate, and are seldom revised once a separation or remarriage has occurred.
Dying without a will is not a neutral outcome. A fixed statutory formula decides who receives what, seldom what a couple would have wanted, and it ignores step-children, in some places unmarried partners, and a business that has to carry on.
For Indian families with a flat or an account abroad, each foreign asset usually needs a separate procedure in the country where it lies, and the two countries may not agree on the governing law; advice before buying abroad is much cheaper than a later dispute.
The essentials
| Statutes | Hindu Succession Act 1956, amended 2005; Indian Succession Act 1925; Muslim personal law |
|---|---|
| Daughters | Equal coparcenary rights in ancestral property since the 2005 amendment |
| Wills | Permitted; probate required in some jurisdictions and for certain communities |
| Muslim law | Fixed shares; bequests limited to one third |
| Estate duty | Abolished in 1985 |
| Ancestral property | Distinct from self-acquired property, with different rules |
Putting it into practice
- Start by locating the will and applying for the grant or letters of administration, or what replaces them locally.
- Assess the value of the estate, including property that passes outside it by nomination or survivorship.
- Invite creditors to come forward where the law demands it, then discharge the debts before any distribution.
- Submit the tax filings that follow a death and get the necessary clearance.
- Wait until the claim period has run out before distributing, and keep a signed account of the distribution.
Costs and what falls outside the estate
Court fees in India are low, but lawyers' fees are not, and when heirs contest an estate those fees regularly exceed what is at stake. Estate duty was abolished in 1985, leaving capital gains on a later sale as the main tax point. Pensions, insurance and joint accounts often make up the bulk of the wealth, pass outside the estate and are the least checked.
Recent developments
The Supreme Court held in 2020 that the 2005 amendment applies whether or not the father was alive on the date it came into force, settling years of conflicting decisions.
Where to ask
- Court or registry handling probate for the estate
- The revenue office, for returns and tax clearances connected with a death
- A referral service operated by the bar or law society
- Insurers, banks and pension schemes, for assets outside the estate
- The civil registry, which issues the death certificate and proof of family ties
Point of caution
The distinction between ancestral and self-acquired property decides everything: self-acquired property can be willed freely, ancestral coparcenary property cannot.
Questions and answers
Who inherits if there is no will?
By the statutory order. Spouse or partner and children take first place; other relatives follow in the order fixed by the legislation.
Do pensions and life insurance form part of the estate?
Usually they fall outside it: the named beneficiary on the form takes them, overriding the will.
How long does administration take?
Typically six to eighteen months where nobody contests, and noticeably longer in a dispute or when assets are held abroad.
Can a will be challenged?
It can be, on grounds of capacity, undue influence or form, and a dependant may usually claim provision. Limitation periods are brief and applied strictly.
Official sources
- India.gov.in — national portal of India
- India Code — central and state legislation