In the hustle and bustle of expat life in the UAE, many individuals strive to secure a financially stable future for themselves and their families. However, in their pursuit of generating wealth and financial security, many UAE expats tend to prioritise immediate gains, inadvertently relegating the creation of a will to a secondary concern, leaving their long-term asset protection and family’s future uncertain.

Having a will is essential for expats to protect their assets, ensure their wishes are honoured, and provide a sense of security and peace of mind for their loved ones, especially in light of the uncertainties that come with living abroad. As an expat in the UAE, it’s crucial you address the importance of will-making to take control of your legacy and safeguard your family’s future.

Why is a will important?

There are several reasons why you should write a will. First and foremost, a will gives you control over the distribution of your assets, allowing you to decide who will receive what portion of your estate. Additionally, if you have minor children, a will enables you to appoint guardians to care for them in the event of your passing. Without a will in the UAE, your assets will be distributed according to the laws of the country, which may not align with your desires or the needs of your family. Writing a will helps avoid intestate distribution and potential conflicts among family members. Moreover, a will allows you to provide for partners, stepchildren, or other non-traditional family members who may not be recognised under intestacy laws. It can also be used for basic tax planning, potentially reducing tax liabilities on your estate.

The contents of a will can vary depending on individual circumstances and preferences, but typically it includes your full name, address, and other identifying details, the appointment of executors to carry out your instructions, beneficiaries to whom you want to leave your assets, specific details about how your assets should be distributed, nomination of guardians if you have minor children, a residue clause that deals with any assets not specifically mentioned, and signatures of witnesses in accordance with the legal requirements of your jurisdiction.

What happens in the absence of a valid will?

When someone passes away without having made a valid will or trust, it creates an intestate situation. In this case, the distribution of their assets and property follows the laws of the state or country where they lived, rather than their own wishes. In the UAE, this can create several negative consequences. If an individual dies intestate, their assets are subjected to Sharia Law, the guardianship of minor children and the distribution of the family’s estate may be decided by UAE Courts as per the law. This means that guardianship of minor children will not automatically go to the mother if the father passes away. Instead, it goes to the father’s brother or uncle.

Financial assets, including bank accounts (including joint accounts), are also frozen upon an individual’s death. Dependent visas are cancelled, and dependents are allowed a maximum stay of one month before needing to leave the country. The probate process in intestate cases can be more complicated and time-consuming, potentially leading to disputes among the heirs. To ensure an appropriate allocation of assets and properties as an expat in the UAE, it is crucial that you register a will.

How are expat wills administered in the UAE?

Wills in the UAE are administered through the Dubai Courts or Abu Dhabi Judicial Department, depending on which emirate the individual lives in. The administration of wills for expats is governed by the UAE Personal Status Law, which is based on Sharia law principles for matters related to inheritance.

This can lead to potential negative consequences for expats, including forced heirship rules, differing asset distribution, and complexity in the inheritance process. To avoid such issues, expats can opt for the “UAE Personal Status Law for Non-Muslims,” or the Dubai International Financial Centre (DIFC) Wills and Probate Registry.  These have a few key differences:

1. UAE Personal Status Law for Non-Muslims:

• Expats who are non-Muslims can choose to register their wills under the “UAE Personal Status Law for Non-Muslims.” This option allows them to have their wills governed by the laws of their home country, rather than UAE Sharia law. It provides more control and flexibility over the distribution of their assets.
• Wills registered under this option are typically administered through the courts in the respective emirate where the expat resides. The will is translated into Arabic, and the courts verify its validity according to the laws of the expat’s home country.

2. Dubai International Financial Centre (DIFC) Wills and Probate Registry:

• The DIFC Wills and Probate Registry is a specialised option available for non-Muslim expatriates residing in Dubai and Ras Al Khaimah. It operates under common law principles, offering a more familiar legal framework for many expats.
• Wills registered with the DIFC are drafted in English, eliminating the need for Arabic translation. This makes it more accessible and straightforward for many expatriates.
• The DIFC Wills and Probate Registry has its own probate process, ensuring efficient and effective administration of the wills registered within its jurisdiction.

Why choose DIFC?

DIFC offers a common law setting, making it familiar and reassuring for non-Muslim expatriates. Wills registered in the DIFC are in English, facilitating clear communication of asset distribution wishes. By registering in the DIFC, you can protect your assets in the UAE and avoid potential application of Sharia law. The process also allows for efficient probate and provides certainty, clarity, and international recognition for your will. Ultimately, registering a will in the DIFC ensures that your wishes are legally binding, granting you peace of mind and security.

What are the key considerations when preparing a will in the UAE?

When preparing a will in the UAE, there are several important considerations you should keep in mind to ensure that your wishes are accurately reflected and legally enforceable within the country’s legal framework.

1. Clear and Specific Instructions: Your will should clearly state how you want your assets and properties in the UAE to be distributed among your beneficiaries. Be specific in identifying your beneficiaries and their shares to avoid ambiguity or potential disputes.
2. Choice of Executor: Appoint an executor (or executors) who will be responsible for carrying out the instructions in your will within the UAE. Choose someone you trust, who is reliable, and capable of handling the administrative tasks involved.
3. Guardianship of Minors: If you have minor children residing in the UAE, designate a legal guardian in your will who will take care of them in the event of your passing. This prevents unnecessary uncertainty and avoids complications with forced heirship.
4. Assets Coverage: Take into account all of your assets in the UAE, including real estate, bank accounts, investments, business holdings, and personal belongings. Ensure that your will covers all relevant assets within the UAE to avoid complications later.
5. Debts and Liabilities: Address any outstanding debts or liabilities you may have in the UAE and specify how you want them to be settled after your passing.
6. Regular Updates: Review your will periodically, especially when significant life events occur, such as marriage, divorce, births, deaths, or changes in financial circumstances. Keep it up to date to reflect your current wishes accurately.
7. Tax Implications: Consider potential tax implications of your estate plan in the UAE. Consult with a tax advisor familiar with UAE tax laws to optimize the distribution of your assets and minimise tax burdens for your beneficiaries.
8. Special Bequests: If you have specific bequests, such as charitable donations or sentimental items you wish to pass on to someone in the UAE, make sure to include them in your will.

Conclusion

Seeking professional assistance with a will is essential if you want your wishes to be accurately reflected and legally enforceable. While preparing a will may seem straightforward, the complexities of cross-border assets, varying legal jurisdictions, and cultural differences can create challenges. A qualified legal professional with expertise in wills and estate planning can navigate these complexities, offering tailored advice that aligns with your unique circumstances and preferences.

With professional assistance, you can confidently address crucial considerations such as asset distribution, guardianship of minors, tax implications, and adherence to specific legal frameworks like the DIFC Wills and Probate Registry. Moreover, a legal advisor can help expats stay up to date with changing laws, ensuring your will remains relevant and legally valid over time.