Wills in UAE

Establishing a business in the United Arab Emirates (UAE) is highly rewarding. However, one of the critical steps that most entrepreneurs overlook is securing the legacy with proper inheritance planning.

Will registration in UAE play a vital role in ensuring that your assets, including business shares, bank accounts, and personal property, are distributed or handed down properly as per your wishes.

Residents and expatriates, including both Muslims and non-Muslims, must understand how UAE will for expats and others work, the process of drafting them, and the associated legalities. Individuals aged 21 or older have legal capacity to make decisions as it is crucial to ensure the assets are protected and handed over properly.

Understanding Wills in UAE

A will is a legal document that allows an individual to outline how the assets and properties should be distributed after their demise. The UAE has a unique legal framework for inheritance that applies differently to Muslims and non-Muslims.

Muslims: Sharia-based Law

For Muslims, inheritance is governed under Sharia Law, regardless of the nationality. Some key aspects under this are:

• Specific portions of the estate are pre-determined for mandatory heirs such as spouse(s), children, and parents.
• Muslims can only hand over up to one-third of their estate through a will. The remaining two-thirds are subject to the strict rules of Islamic inheritance, ensuring legal heirs receive the legally mandated shares.
• If no will exists, or if a will exceeds the permissible one-third share, UAE courts apply Sharia succession rules automatically.

These rules ensure compliance with Islamic jurisprudence but may limit personal flexibility in business succession planning.

Non-Muslims: UAE Civil Law

To accommodate UAE’s large expat population, reforms have allowed non-Muslims greater freedom when it comes to wills in UAE. For non-Muslims, the UAE will for expats is governed by two federal laws:

• Inheritance Law 1: Under the ‘Federal Decree-Law No. 41 of 2022 on Civil Personal Status’, non-Muslims can request that the law of their home country govern the distribution of their UAE estate. This needs to be expressly stated in a registered will.
• Inheritance Law 2: Non-Muslims also have the option to apply UAE civil inheritance rules (rather than Sharia). These rules generally allow for more flexibility in distributing assets. If a non-Muslim passes away without a registered will, their estate will be distributed according to the UAE civil personal status law.

This distinction makes understanding wills in Dubai, wills in Abu Dhabi, and other Emirates essential for anyone owning assets in the UAE, especially for entrepreneurs planning business setup in UAE.

What are the Reasons for Creating Wills in UAE?

Creating wills in Dubai, UAE is important for both residents and expats. It is crucial for entrepreneurs and investors who built significant assets from business setup in Dubai. 

A properly drafted will ensure that the assets are protected, minimising legal complications and family disputes. Here are the key reasons for creating wills in UAE:

Clear Distribution of Assets

The primary reason for having a will is to ensure that your assets are distributed as per your instructions. For Muslims, the distribution is governed by Sharia Law, and for non-Muslims, under ‘Federal Decree Law No. 41 of 2022’ and other relevant civil laws effective since February 2023, if no will is registered, the UAE civil inheritance laws apply.

Guardianship for Minors

A registered will in the UAE ensures that the living parent is the minor children’s guardian. In some cases, it also helps appoint legal guardians for minors to ensure financial security in the event of your death.

Prevent Official Disruptions

Upon the death of an individual, bank accounts in the UAE are frozen. However, with the presence of a will, the beneficiary can have control of the bank account on the completion of the probate process.

Visa Cancellation

The residence visas of dependents are cancelled upon the death of an individual and they have to leave the country within a period of 30 days. In such cases, having a will is important as it helps in resolving the inheritance problems efficiently within the short time frame.

Protect Business Interests

Dubai wills for expats help secure business shares in both free zone and mainland companies, preventing unintended heirs from gaining ownership.

Protect Creative Assets

Intellectual property and trademarks in the UAE should also be included in the will to protect creative assets.

A registered will is a great instrument that provides certainty, clarity, and security for both family and business partners.

Registration of Wills in UAE

Proper registration of wills is necessary to make it legally binding in all of the Emirates. Both Dubai and Abu Dhabi have clearly established channels for non-Muslims to register their wills:

• Dubai: Non-Muslims can register their wills at the ‘Dubai International Financial Centre (DIFC) Wills Service Centre’ or the ‘Dubai Courts Notary Public’. These Dubai wills for expats cover moveable assets such as bank accounts and investments, as well as immoveable property like real estate.
• Abu Dhabi: Non-Muslims can register wills at the Abu Dhabi Judicial Department (ADJD). This ensures that wills in Abu Dhabi are recognized legally and reduce potential disputes among heirs.

Cost of Drafting Will in Dubai, UAE

Both expats and residents want to know the cost of making a will in Dubai, UAE. The involved cost varies depending on the complexity of the will, amount charged by professionals, and additional fees such as Dubai court will registration fee.

Investing in a professionally drafted will with the help of experts such as Commitbiz ensures peace of mind and avoids legal complications in the future for family members.

What are the Steps to Draft Wills in UAE?

When planning for the future, it is important to secure assets by creating a will. This ensures that assets are transferred as per the wishes and the loved ones are in a safe space.

Our expert team at Commitbiz will guide through every step of will creation, ensuring the legacy is protected:

Step 1: Identify all movable and immoveable assets and the beneficiaries who will bequeath them.
Step 2: For non-Muslims, choose the right law. You can decide whether to apply home country law or UAE civil inheritance law.
Step 3: Engage a lawyer familiar with UAE inheritance laws for seeking expert legal assistance.
Step 4: Register the will by submitting it to the relevant authorities such as the DIFC Wills Service Centre or Abu Dhabi Judicial Department.
Step 5: Revisit the will and update regularly to reflect changes in family status, business structure, or asset ownership.

Why Choose Commitbiz?

From safeguarding loved ones to protecting the company, creating well-structured wills in UAE is a vital part of financial and business planning. At Commitbiz, our experts can help in preparing a properly registered will through DIFC, ADJD, or the Dubai Courts. A will is not just a personal safeguard, it is also a business continuity tool that protects the company, partners, and the family’s future. Contact us today to get started.