Navigating Wills and Estate Planning for Expats in the UAE P

Welcome to Part 2 of our guide on wills and estate planning for expats in the UAE.

In this blog, we’ll talk about how your belongings are shared, picking someone to manage your will, global considerations, changing your will, and taxes for European expats.

Can you explain how assets and properties are divided according to a will in the UAE for European expats, and are there specific things to consider?

In the DIFC, there are no strict rules governing how assets and property under a will are administered. The DIFC rules follow English Law principles, granting the testator or testatrix complete freedom to decide how their estate will be handled after they pass away.

However, if a will is registered with ADJD, the testator or testatrix has the authority to choose which law applies to the will. Opting for English Law in this scenario provides the same broad discretion as a DIFC will. On the other hand, if the law of their home country is applied, their discretion may be limited. For instance, countries like Italy and France require a fixed share of one’s estate to go to the surviving spouse and children.

It’s essential for individuals to consider these factors when deciding the jurisdiction and laws governing their will.

How should European expats choose an executor for their will, and what are the duties of an executor in the UAE?

When selecting an executor, expats should ideally choose a trusted friend or a professional to safeguard the heirs’ best interests. An executor appointed in a DIFC or ADJD has the responsibility to act according to the testator’s wishes and in the estate’s best interests.

The practical tasks an executor must handle include registering the testator’s death with the relevant authority, obtaining and legalising the death certificate if the testator passed away abroad, organising the funeral, applying for a grant of probate, managing assets as per the will, and eventually distributing assets to beneficiaries or entrusting them to trustees in the case of minor children.

Given these responsibilities, it’s advised to think carefully when choosing an executor. A trusted friend residing abroad, even if professionally qualified, might not be the optimal choice. Dealing with UAE entities involves complexities, and the executor’s role can be demanding. Clients are encouraged to opt for a trusted professional executor or a UAE resident with some local work experience. This choice can expedite the estate administration process and ensure beneficiaries gain access to their inheritance sooner.

Are there any international implications or treaties that European expats need to be aware of when creating a will in the UAE?

Choosing the applicable law for one’s will and deciding where to create it is a complex task, necessitating the guidance of an experienced international lawyer. This decision holds significance as it can impact forced inheritance rules and inheritance taxes.

European countries have diverse inheritance regulations, making it crucial to seek specialist advice. Guidance from experts ensures a well-informed decision aligned with individual circumstances and legal considerations.

What is the process for updating or changing a will in the UAE, and how often should European expats review their wills?

Updating a DIFC Registered Will is as simple as the initial registration process. Submitting the amended Will on the DIFC web portal and booking a new appointment for registration is all it takes, with the DIFC charging a minimal fee for this service.

In contrast, if a Will is registered through the ADJD attestation process, the amended Will must be freshly drafted, translated, and re-registered—all at the same cost as the initial registration.

It’s important to note that both ADJD and the DIFC Courts do not acknowledge informal changes made on a copy of a registered Will, emphasising the necessity of formal processes for any amendments.

Are there any tax-related factors or considerations regarding wills and estate planning for European expats in the UAE?

Yes, there are. Although the UAE itself doesn’t impose inheritance tax, your assets in the UAE may be subject to inheritance taxes in your home country (or the country of your domiciliation at the time of death) if you are a tax resident in a foreign country when you pass away.

Moreover, if the beneficiaries inheriting your assets in the UAE intend to repatriate those assets to their home country, there is a potential risk that these assets could be subject to income or inheritance tax in that country upon repatriation. It’s crucial to be aware of these potential tax implications and seek professional advice for a comprehensive understanding of the tax landscape.

Is it advisable for European expats to seek legal help when making a will in the UAE, and what advantages does it offer?

Yes, it is highly recommended to seek legal advice before and during the process of making a will in the UAE. Yungo Law brings over 20 years of expertise in aiding individuals in managing their assets, estate planning, and executing last wills and testaments. Our experience encompasses navigating complexities related to inheritance and re-patriation taxes in foreign countries.

As you can see from the responses above, each situation is unique and can present unforeseen legal challenges. Yungo Law is dedicated to assisting you in comprehensively understanding these complexities, mitigating potential risks, and ensuring the protection of your loved ones and assets, thereby securing the continuity of your legacy.

Seeking guidance on wills and estate planning as a European expat in the UAE? Yungo Law is here for you. Our team is committed to assisting you through the complexities of this process, ensuring the protection of your rights and interests. For personalised advice or specific inquiries, don’t hesitate to reach out to our experts.

Disclaimer:

This information is intended for general guidance and should not be considered legal advice. Each situation is unique, and we recommend seeking independent legal advice before finalising your will or estate planning decisions.

Originally published at: https://yungo.ae/navigating-wills-and-estate-planning-for-expats-in-the-uae-pt-2/