In the UAE, planning your estate is more than just deciding who inherits your property. For many residents and investors, bank accounts, investments, and business shares form a large part of their wealth. Without proper legal planning, these assets may be frozen, delayed, or distributed in ways that do not reflect your wishes.
A legally valid UAE Will ensures that your financial and corporate interests are protected and transferred smoothly to your chosen beneficiaries. Here’s how you can effectively safeguard these valuable assets.
Why Planning for These Assets Matters in the UAE
Under UAE law, if one passes away without a registered Will, their estate, including bank accounts, shares, and investments, may be distributed according to Sharia inheritance principles. This can lead to:
- Bank accounts being frozen until legal procedures are complete
- Shares or investments being distributed among family members in fixed proportions
- Delays and additional costs in transferring ownership
Registration of Wills in the UAE allows you to avoid uncertainty, minimise disputes, and ensure your assets are handled exactly as you intend.
1. Protecting Bank Accounts in Your UAE Will
The Risk Without a Will:
When a bank account holder passes away in the UAE, the account—whether sole or joint—can be frozen. This remains in place until the courts determine how to distribute the funds. Without a Will, this process can be lengthy and may not align with your wishes.
How a Will Helps:
By specifying in your Will who should inherit your bank accounts and in what proportions, you provide the legal clarity needed for banks to release funds more quickly to the rightful beneficiaries.
Key Steps:
- List all your UAE bank accounts in your Will, including account numbers and bank names.
- Clearly name your beneficiaries and their exact share.
- It is recommended to appoint the beneficiaries as the executors itself as they will have the right intentions to make sure the Will is executed
2. Securing Investments Through Your Will
Types of Investments to Consider:
- Stocks and bonds
- Mutual funds
- Real estate investment trusts (REITs)
- Offshore investment portfolios held through UAE accounts (Note: This can only be done to DIFC Wills.
The Risk Without a Will:
Investments may be sold, liquidated, or divided in a manner inconsistent with your investment strategy or your beneficiaries’ needs.
How a Will Helps:
A Will allows you to direct not only who inherits your investments but also how they should be managed. For example, you can instruct your executor to retain certain assets, sell others, or distribute them in specific ways.
Key Steps:
- State whether investments should be liquidated or transferred intact.
- Consider setting up a trust within your Will for minors or vulnerable beneficiaries.
- State all your assets and their beneficiaries clearly.
3. Protecting Business Shares in Your Will
For business owners and shareholders, planning is especially critical.
The Risk Without a Will:
Without a Will, your shares may pass to heirs who have no interest or experience in running the business. This can disrupt operations, affect partnerships, and reduce the value of your company.
How a Will Helps:
By including your business shares in your Will, you can:
- Appoint a beneficiary who understands or is prepared to manage the business.
- Authorise the sale of your shares to a co-owner or third party.
- Ensure compliance with your company’s Memorandum of Association or shareholder agreements.
Key Steps:
- Review company documents to confirm your rights to transfer shares via a Will.
- Coordinate with co-owners or partners to align your estate plan with business continuity.
- Include clear instructions in your Will for the handling of your shares.
4. Choosing the Right Jurisdiction for Your Will
In the UAE, non-Muslims can register their Wills in either:
- Dubai International Financial Centre (DIFC) Wills Service Centre
- Abu Dhabi Judicial Department (ADJD) Wills Registry
Both options allow for the inclusion of bank accounts, investments, and business shares, but the choice may depend on where your assets are located and your place of residence.
Draft Your UAE Will Professionally and with Ease.
Your financial and business assets are the result of years of hard work and planning. Without a proper Will, these assets may be tied up in legal procedures, distributed in ways you didn’t intend, or even lose value in the process.
By creating a clear and legally valid UAE Will, you can make sure your bank accounts, investments, and business shares are protected and passed on according to your wishes, securely and without unnecessary delays.
MakeMyWill is here to make that process seamless, providing expertise, precision, and peace of mind every step of the way. Contact our experts today and secure your Will in the UAE now.
