In a city known for its skyscrapers, breathtaking skylines, innovation, and infrastructure, one of the most overlooked and underestimated facets of financial security remains estate planning. You may be an expat who has made Dubai your second home or a long-term resident with property spread across the UAE. Irrespective of where you stand in your journey within the UAE, a registered Will and estate planning are absolute prerequisites to a secure future for you and your family.
Estate Planning and the Role It Plays in Dubai
According to the UAE Federal Competitiveness and Statistics Centre, Dubai’s population is predominantly comprised of expatriates, with nearly 90% being foreign residents. Despite this, many expatriates remain unaware of the fact that without a properly registered Will, their assets could be distributed as per Sharia principles, without much regard to their personal wishes or considerations for asset distribution, even if they are non-Muslim.
What this means is that in the absence of a Will, the UAE’s inheritance laws will come into effect. In such cases, bank accounts may be frozen, property ownership may be reassigned, and guardianship of minor children may be determined by the courts. The process of Estate Planning ensures that the above complications are avoided and that your assets, finances, family, and legacy are all protected as per your wishes, without resorting to the default legal framework.
Wills in Dubai: The Legal Framework
The UAE has made an impressive amount of progress in recent years and provided non-Muslim residents with several avenues to draft and register their Wills. A deep dive into the multiple channels through which you can draft your Will, along with a comprehensive understanding of the legal framework attached to each of the channels, will help you make an educated call on where you should draft your Will.
- DIFC Wills Service Centre: Dubai International Financial Centre (DIFC) Wills follow the legal framework of the English Common Law system for drafting a Will in Dubai, which many expatriates are familiar with. DIFC Wills provide non-Muslims with an opportunity to cover assets based in Dubai and Ras al Khaimah and are recognised by the UAE courts.
- Abu Dhabi Judicial Department (ADJD) Wills: These Wills permit both non-Muslim and Muslim residents of all emirates to register Wills in Abu Dhabi that are valid across the wide ambit of all of the UAE, facilitating wider coverage for individuals who have assets spread across different emirates.
- Dubai Courts Wills: In addition to the above stipulated frameworks, Non-Muslims also have a provision to register Wills directly with the Dubai Courts and opt for the UAE Civil Inheritance Law instead of the default Sharia law. This framework works best for individuals who have assets limited to Dubai.
These frameworks are an essential step in the right direction that showcase the UAE’s commitment to protecting the future of expats, while being in a state of alignment with the country’s traditions.
The Scope of Comprehensive Estate Planning
Estate Planning, when well structured, goes beyond just naming beneficiaries. Some of the key fundamentals of estate planning include the following personal and financial affairs:
1. Investments and Property: This is where you clearly outline who will inherit your company shares, real estate, and international holdings.
2. Bank Accounts and Key Business Assets: This helps to ensure financial continuity for all your business operations, without having to worry about frozen bank accounts during probate.
3. Guardianship for Minors: Appoint legal guardians for minors, bypassing custody complications at a later stage.
4. Digital Assets: Include cryptocurrency wallets, intellectual property, and other digital assets, so you can allocate the distribution of digital assets.
Steps to Creating a Will in Dubai
- Create a list of all your assets
- Appoint executors and guardians
- Seek legal assistance
- Register your Will
- Regularly review and update your Will
Why You Shouldn’t Delay Estate Planning
Life in Dubai moves quickly, and just as opportunities show up unannounced, tragedy does too. Having a Will in place ensures that your family is spared the uncertainty and legal delays that can arise in the absence of a Will.
At MakemyWill, we remove the hassle out of estate planning and Will drafting, making the process simple, efficient, and fully compliant with UAE regulations. Our team of experienced legal experts is adept at drafting Wills related to property, bank accounts, business shares, guardianship, and more. Book a free consultation with MakemyWill and take control of your future today.
