We have received a significant number of enquiries from individuals and families who have recently moved to the UAE to set up a new business or start a new job. Many of these clients already have Wills in their home countries and wish to know whether a UAE Will is possible and, importantly, whether it is necessary.
In this article, we answer some of the most commonly asked questions relating to UAE Wills and inheritance laws in the UAE.
I Have a Will in My Home Country – Do I Need a UAE Will?
If you have minor children who are relocating with you to the UAE, it is advisable to put a UAE Will in place to cover both temporary and permanent guardianship for children under the age of 21.
If you intend to own any assets in the UAE, a UAE Will is also advisable to ensure that these assets pass in accordance with your wishes in the event of your death.
A UAE Will can cover both guardianship and assets, providing greater clarity and certainty for your family.
I Am Renting an Apartment and Leasing My Car – Do I Still Need a UAE Will?
Even if you do not own property in the UAE or have children, you may still have assets or financial interests that form part of your UAE-based estate.
If you are employed, it is likely that you will have opened a local bank account for payment of your salary. In the event of your death, this bank account would form part of your UAE-based estate. Similarly, if you are accruing a gratuity payment through your employment contract, this may also form part of your UAE-based estate and would generally require appropriate arrangements to govern how it is distributed following your death.
If you are not employed but have established your own onshore or offshore company in the UAE, your shares in the company would also form part of your UAE-based estate on death. A UAE Will can help govern the succession of those shares in accordance with your wishes.
I Own Property Jointly with My Spouse – Will It Automatically Pass to Them?
Jointly owned assets do not necessarily automatically pass to the surviving joint owner in the UAE. This can apply to both UAE real estate and local bank accounts.
The deceased’s share in the asset may need to be dealt with in accordance with the applicable succession arrangements, while the surviving spouse’s share would remain in their legal ownership.
For this reason, couples who own property or other significant assets jointly should consider how those assets would be dealt with in the event of either spouse’s death and whether a UAE Will for married couples would be appropriate.
What Happens to My UAE Assets If I Do Not Have a UAE Will?
If you own real estate in the UAE, this may be distributed in accordance with the applicable default local succession laws, which are based on the Islamic system of inheritance, depending on the circumstances.
For non-real estate assets, it may be possible in certain circumstances to apply a foreign Will to UAE-based assets if it has been appropriately drafted and satisfies the relevant requirements. However, the process of applying a non-UAE Will to assets located in the UAE can be lengthy and costly and may create additional difficulties for surviving family members.
Having a properly prepared UAE Will can therefore provide greater certainty and help your loved ones avoid unnecessary complications when dealing with your UAE estate.
Why Consider a UAE Will?
For expatriates living and working in the UAE, preparing a UAE Will can be an important part of estate planning. It allows you to consider what should happen to your UAE assets and, where applicable, make arrangements concerning the guardianship of your children.
Your circumstances may change over time, particularly if you purchase property, establish a business, have children or acquire additional assets. It is therefore important to review your Will periodically to ensure that it continues to reflect your wishes.
UAE Wills and Inheritance Law Advice
A UAE Will should be carefully drafted to reflect your individual circumstances, assets and family arrangements. The appropriate approach may also depend on your nationality, religion, residence and the location and nature of your assets.
If you are an expatriate living in the UAE, have children, own UAE property, hold local bank accounts or have business interests in the UAE, it is worth considering whether a UAE Will should form part of your estate planning.
For further information and guidance on UAE Wills, inheritance law, estate planning or guardianship, please contact James Berry & Associates and our Family Law team.