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Wills and Inheritance
Having a will is crucial for personal and financial well-being, especially when you live in a country like the UAE with strict and complex inheritance laws. Not only Emiratis but also expatriates residing in the UAE can utilize this clear, legal, and compliant method to protect and distribute their assets according to their wishes.
The Emirates is globally well-reputed as the prime destination for investment, business, and quality living. However, as an expatriate, you must know that investing and living in the UAE is certainly beneficial, but local Sharia-based laws can complicate your asset distribution. Without a properly registered will, you cannot pass on your legacy and assets according to your desire.
Hisab Taskmaster CAdvisors is led by a team of highly experienced and knowledgeable business and tax advisory experts who provide specialized financial and tax advisory solutions to our clients and help them navigate the succession planning process.
In the Emirates, registering a will is beneficial for both residents and nationals, as it guarantees the business or property assets of the testator are distributed according to his/her wishes.
Understanding Wills in UAE
What is a Will?
A will serves as an official record that outlines a person’s desire to distribute their assets and estate after their death. The testator specifies in this legal document who will receive their property, who will manage their estate, and even who will be the guardian of any of their minor children after their death. In simple terms, a will specifies how property, investments, and other assets will be divided among beneficiaries after the testator’s death. This legal document is written and signed by the person making the will before two or more witnesses. Having a registered will is essential for residents in the UAE, particularly expatriates, as dying without one means Sharia law will automatically apply to their inheritance.
Who Can Make a Will in UAE?
Both muslims and non-muslims over 21 years old can make a will for their movable and immovable assets within the UAE. Muslims and non-Muslim testators, the person making the will, must be of sound mind; only then can they register their wills in the ADJD and DIFC, respectively.
UAE inheritance laws are governed by Sharia law for Muslims and a mix of Sharia and the law of their home country for non-Muslims. A non-Muslim expatriate can choose the application of their home country’s inheritance law to their assets within the Emirates. If a person of any religion dies without leaving a will, the Sharia law of inheritance is applied to their assets.
Understanding Inheritance Laws in the UAE
Inheritance Laws for Muslims
For Muslims, the inheritance of their assets in the UAE follows Sharia law, which means that predetermined Islamic rules dictate specific shares for their heirs. Under Sharia law, half of the inheritance of the spouse or testator is allocated to the spouse, and the remaining is divided equally among male and female children. However, when the testator has no children, the inheritance is distributed to the surviving parents and potential siblings.
Inheritance Laws for Non Muslims
Non-Muslim expatriates are allowed to choose whether to have their home country’s inheritance law or Sharia law applied to their assets within the Emirates. Unlike Muslims, whose asset allocation is determined by standard Sharia rules, non-Muslims can specify in their wills how they wish to distribute their assets to their family members. However, when they die without a will that specifies a preferred law, Sharia law gets automatically applied in such specific circumstances.
What Happens If You Die Without a Will in UAE?
As discussed before, when someone dies without a will or intestacy in UAE, their assets are distributed among the heirs or family members according to the nation’s laws. In such cases, the assets are distributed to the legal heirs based on a predetermined order of priority as per state laws. Distributing assets without a will is more time-consuming and complex, and can lead to family disputes and delayed asset transfer.
Two Main Types of Wills in UAE
Here are the two main types of wills available in the UAE and any Muslim or non-Muslim above 21 can register for them:
1. DIFC Wills
These are registered under the Dubai International Financial Centre and operate under a common law system. It is specifically designed for non-Muslims expats living in RAK and Dubai. The probate of these wills is conducted in English, and they can be Full Wills, Property Wills, Guardianship Wills, etc.
2. ADJD Wills
This can be drafted for both Muslims and non-Muslims, and it reflects the testator’s personal and religious preferences. These wills are required to be translated and notarized in Arabic.
- Asset Protection & Distribution: A register will guarantee that a testator’s assets and investments are distributed as per their wish after their death, which reduces the issue of family disputes.
- Bypassing Sharia Inheritance Law: Without a will, Sharia law is applied to the testator’s investments and assets, which can lead to unintended consequences for non-Muslims.
- Guardianship of Children: A legally registered will allows the testator to appoint a guardian for their minor children, which ensures the well-being of their children even after their death.
- Simplified Probate Process: A will distributes assets quickly and easily among the eligible heirs and reduces the legal challenges and disputes among beneficiaries.
Key Benefits of Having a Registered Will in UAE
Expert Will & Inheritance Planning with Hisab Taskmaster CAdvisors
A will is crucial for your hard-earned assets in the UAE, as any unfortunate incident can lead to your assets being distributed against your wishes. Hisab Taskmaster CAdvisors understand that expert will and inheritance planning solutions are more than protecting your wealth. It is about securing peace of mind for you and your loved ones. Whether you’re an Emirati national or an expatriate living in the Emirates, our expert team will assist you with inheritance planning to will registration, while maintaining legal compliance and alignment with the client’s wishes.
