The Cross-Border Estate Planning Challenge
For individuals with assets in both Australia and India — a common situation for professionals, business owners, and investors in the India-Australia corridor — estate planning requires careful coordination across two different legal systems. A will that effectively deals with assets in one jurisdiction may be inadequate or even invalid for assets in the other.
Without proper planning, families can face prolonged probate processes, unintended inheritance outcomes, and potentially double taxation of estate assets.
Dual Wills Strategy
The most common and effective approach for individuals with significant assets in both countries is to maintain two separate wills — one governing Australian assets and one governing Indian assets. Critical considerations include ensuring one will does not inadvertently revoke the other, clear designation of which assets each will covers, and coordination of executor appointments across jurisdictions.
Australian vs Indian Succession Laws
Australian succession law is primarily governed by state and territory legislation, with each jurisdiction having its own rules on issues such as the formal requirements for a valid will, family provision claims (where eligible persons can challenge a will on the basis it does not make adequate provision), and intestacy rules. Indian succession law varies depending on the religion and domicile of the deceased, with the Indian Succession Act, Hindu Succession Act, and Muslim personal law each applying in different circumstances.
Cross-Border Tax Implications
While Australia does not have a dedicated inheritance tax, the transfer of assets on death can trigger capital gains tax (CGT) events. For cross-border estates, the interaction between Australian CGT rules and Indian tax obligations on inherited property requires careful analysis. The India-Australia Double Taxation Agreement provides some relief but does not cover all estate-related tax events.
Estate Planning Checklist
Essential steps for cross-border estate planning include conducting a comprehensive asset audit across both jurisdictions, obtaining specialist advice in each jurisdiction, establishing coordinated dual wills, reviewing superannuation beneficiary nominations, considering the role of trusts for asset protection and succession planning, and regularly reviewing and updating your estate plan.
Collins Quarters International's Wills & Estates team specializes in cross-border estate planning for individuals in the India-Australia corridor. Book a consultation to protect your legacy.
