Estate Planning Specifics in the UAE
Estate planning is an important aspect for those who have assets and business interests in the United Arab Emirates. Given that the UAE has its own unique rules and regulations concerning estate planning, it is necessary to think ahead and make arrangements for the estate transfer to ensure the safety and security of assets for future generations.
Estate Planning Specifics in the UAE
One of the key reasons why estate planning in the UAE is considered important is the system of inheritance based on Sharia law. If a person dies without leaving a valid will, his assets by default will be transferred by the UAE court according to local Sharia law, whereby all assets of the deceased will pass to the closest male relative. If there is no direct male heir, it can be a second-in-line heir, for example, a nephew, while the wife and children will receive only a certain share, which may differ from the true will and expectations of the deceased.
In order to prevent conflicts and complications and to avoid unfavourable distribution of assets, the UAE offers the possibility of making a will that is recognized by local law.
For this purpose, the UAE has established an institution called the DIFC Courts Wills Service.
The DIFC Courts Wills Service: an important body for non-residents
This Service allows non-Muslims who have invested in the UAE and reside in the UAE to transfer their assets and/or appoint guardians for their children in accordance with their will.
An inheritance under the DIFC Courts law can include any movable and immovable property, whether located in the UAE or outside the UAE.
Note: A will made at the DIFC Courts Wills Service does NOT require making a subsequent application to the court and can be executed in the UAE without additional administrative procedures. Such a will can be made by any person over 21 years of age, who is not a Muslim and who owns assets in the UAE. The testator also has the right to revoke or change the will.
Start making a will today to secure financial stability for future generations.
We will be happy to provide advice and assistance in making a will and offer you other estate planning options in the UAE.
