Planning, worked examples and checklists
Estate planning checklist for Indian families: will, nominations, documents and tax in 2026
Estate planning checklist for India: a valid will, bank, demat, MF, EPF and insurance nominations, a document file and tax, with an example.
An estate plan for an Indian family needs four things: a valid will that says who gets your own property, up-to-date nominations on every bank account, locker, demat account, mutual fund folio, EPF account and insurance policy, a document file your family can find, and a basic understanding of tax on what heirs receive and later sell. None of it requires a lawyer for a simple estate, but each piece has rules that, if missed, push families into courts. This checklist links to a detailed guide for every step.
Part 1: The will
- Write a will covering your self-acquired property and your share in any coparcenary or HUF property
- Sign it in the presence of two witnesses, who sign in your presence (they should not be beneficiaries or their spouses)
- Name an executor and an alternate
- Consider registering it at the Sub-Registrar's office, or depositing it in a sealed cover; this is optional
- Review it after marriage, divorce, a birth, a death in the family, or a large purchase or sale
Full steps are in how to make a valid will. Muslim families should check the one-third rule.
Part 2: Nominations
Nominations make payout quick, but in most cases the nominee holds the money for the legal heirs or the will's beneficiaries. Align nominations with your will so nobody is tempted to keep what is not theirs.
| Asset | Nomination rule (2026) | Guide |
|---|---|---|
| Bank deposits | Up to four nominees, together with percentages or one after another (since 1 Nov 2025) | Bank nominations |
| Lockers and safe custody | Up to four, only one after another | Bank nominations |
| Demat accounts and mutual funds | Up to three nominees under SEBI rules from 1 Sep 2026, with optional percentages; opt-out by declaration | Demat and MF nominations |
| EPF, EPS, EDLI | Nomination in favour of family members; e-nomination on the EPFO portal | EPF and insurance nominations |
| Life insurance | Parent, spouse or child as "beneficial nominee" takes beneficially; others hold for heirs | EPF and insurance nominations |
| PPF, NSC, SCSS | Scheme rules; nominees named in the account | Check India Post or the bank |
| Housing society flat | Society bye-laws allow a nominee; transfer to heirs follows succession | State cooperative law |
Part 3: The document file
Put a single folder (paper and a secure digital copy) where your family can find it:
- The original will, or a note of where it is and who the executor is
- A list of bank accounts, FDs, lockers (with key location), demat, folios, PPF, NPS, EPF (UAN), insurance policies and loans
- Property papers: sale deeds, allotment letters, share certificates of the housing society, property tax receipts
- Purchase cost records for property and investments; heirs will need them for capital gains
- PAN, Aadhaar and passport copies, and marriage and birth certificates for proving relationships
- Contact details of your chartered accountant, advocate and insurance adviser
Part 4: Tax position heirs should know
- No inheritance tax. Estate duty was abolished for deaths on or after 16 March 1985.
- Receipt is not income. Money or property received under a will or by inheritance is excluded from taxable gifts under section 92 of the Income-tax Act, 2025.
- Sale is taxed. When heirs sell, the cost to the previous owner and their holding period are generally used to compute capital gains. See inherited property tax.
- Lifetime gifts. Gifts to relatives are tax-free for the recipient, but income from assets gifted to a spouse or daughter-in-law may be clubbed with yours. See gift tax rules.
- HUF. Families that hold property as a Hindu Undivided Family have separate rules. See HUF basics.
Worked example: a typical household (illustrative)
Anil (58) and Kavita (55) have a flat worth ₹1.1 crore in Anil's name, FDs of ₹18 lakh in joint names, mutual funds of ₹25 lakh, EPF of ₹32 lakh and a term policy of ₹1 crore. They have a son and a daughter.
| Item | Before planning | After planning |
|---|---|---|
| Flat | No will; would pass to Class I heirs: Kavita, son, daughter and Anil's mother | Will leaves it to Kavita for life, then to the children equally |
| FDs | Joint "either or survivor", no nominee | Survivorship kept; two nominees added at 50% each for when both have died |
| Mutual funds | Nominee: Anil's brother (made in 2004) | Nominees updated to Kavita 100%; will names the children after her |
| EPF | Nomination in favour of the mother, made before marriage | Re-nomination to Kavita and the children; a nomination outside the family becomes invalid once the member has a family, and a parent counts as family under the EPF Scheme only if dependent |
| Term policy | Nominee: Kavita | Kept; she is a beneficial nominee |
The plan costs little: perhaps a few thousand rupees for registering the will (optional) and an hour at the bank and on the EPFO and fund-house portals. Without it, the brother would collect the mutual funds as nominee and hold them for the heirs, which could start a dispute.
Part 5: Claims after a death
When the time comes, the family follows the estate paperwork checklist. For bank accounts, the RBI rules in force from 1 April 2026 set a 15-day settlement deadline after all documents are received, and a simplified route up to a threshold of at least ₹15 lakh (₹5 lakh at co-operative banks) without nominees. See claiming a deceased depositor's account.
When to involve a professional
- You own property in more than one state or abroad
- There is coparcenary or HUF property, or a family business
- You want to provide for a child with a disability, or to set up a trust
- You expect a family member to contest the will
- You are in a second marriage, with children from more than one marriage
Frequently asked questions
Is a nomination a substitute for a will?
No. A nomination tells the institution whom to pay. A will decides who owns. Use both, and make them consistent.
How often should I review my estate plan?
At least every few years, and after any marriage, divorce, birth, death, move abroad or major purchase.
Can I make a will for property I will buy later?
Yes. A will speaks from the date of death, so it can cover property you acquire after making it, if worded to include all your property.
Should my spouse also make a will?
Yes. Each person can only will their own property. Joint assets and the survivor's own assets need the survivor's will too.
Sources
- Reserve Bank of India — bank nomination and claim settlement rules
- Securities and Exchange Board of India — nomination in demat accounts and mutual funds
- Employees' Provident Fund Organisation — EPF e-nomination
- Insurance Regulatory and Development Authority of India — policyholder nomination rules
- Income Tax Department — Income-tax Act, 2025
