Navigating Wills and Estate Planning for Expats in the UAE Part 1

Welcome to our blog series on wills and estate planning for expats in the UAE.

In this first blog, we’ll explore the importance of having a will and how UAE law addresses wills made by expats. Whether you’re a European expat or from anywhere else in the world, understanding these aspects is crucial for securing your family’s future in the UAE. Stay tuned for insights into key considerations and options available for will registration.

Why is having a will important for European expats in the UAE, and how does UAE law handle wills made by expats?

In the past, when an expat passed away, their belongings in the UAE would be sorted out following Shari’a law. This meant the oldest male relative got a bigger share than other family members. Even though the influence of Shari’a law is less nowadays, it can still take a long time – up to 24 months – to get permission to sort out the belongings after someone passes away. Making and registering a will in the UAE is therefore a necessary move to make sure your family and loved ones are protected.

There are different ways to make a will in the UAE. One popular choice is using the Dubai International Financial Centre, or DIFC. It’s quick, easy, and done in English. The DIFC Courts usually finish the process in two weeks, as long as there are no issues. Plus, the DIFC has agreements with UAE courts, so wills registered there are accepted all over the country.

Another option is having your will verified by the Abu Dhabi Judicial Department, or ADJD. It’s cheaper than a DIFC will and is open to Muslim citizens from non-secular countries (unlike DIFC wills, which are only for non-Muslims). ADJD is a bit newer, and registering a will can take a bit more time. We’re still figuring out how the UAE courts will handle ADJD wills, and we’re not sure about the exact timing for permission to sort things out. However, from our experience, ADJD is responsive and deals with things well and quickly.

What are the rules for creating a valid will in the UAE for European expats, including the paperwork and formalities required?

Making a valid will in the UAE is a quick and easy process, especially if you use the DIFC, where it can be done in a week or two. To create a will, you just need to be over 21, not a Muslim, and never have been one. If a Muslim is a citizen of a non-secular country, they can register a will with the ADJD even if they are Muslim.

The only paperwork needed are passport copies, contact details, and addresses for the people involved – the person making the will, the executor, the guardian, and the beneficiaries. Of course, you also need to share what you want to happen in your will.

Once all the information is collected, your lawyers can help you write the will, including any statements from witnesses if you’re appointing guardians. Everything is then uploaded on the DIFC website, and an online appointment is scheduled. The whole process is done digitally and usually takes about an hour on the appointment day. If you use ADJD, it might take a bit longer because the will needs to be translated into Arabic by an authorised translator.

Yungo Law has made this even simpler with the help of Legal Tech. You can use this link on our website to provide the necessary details for a will through a digital page, saving you time and money.

How do UAE inheritance laws affect European expats, and what should they keep in mind when planning their assets and estates?

The UAE has recently updated its personal status laws for non-Muslims to align with global standards and foreign values, aiming to reduce the application of Shari’a law to non-Muslim individuals. Now, if a non-Muslim passes away without a will, half of their estate in the UAE will go to their surviving spouse, and the other half will be equally divided among their children.

However, it’s important to note that not all Emirates have put in place regulations to enforce these changes. Dubai, for instance, has recently established a dedicated section in its personal status court for non-Muslims, focusing on implementing the new law. How this court will carry out the changes is yet to be seen.

Presently, the risks of waiting for 12 to 24 months to receive probate from Dubai Courts and the potential application of Shari’a law to estate administration still exist. We strongly advise expats to reduce these risks by registering a will with the DIFC or ADJD.

When appointing guardians for their children in their wills, what should European expats understand about the legal processes involved?

Choosing a guardian for your minor children can be a tough decision, but it’s crucial, especially if you live in the UAE.

Before recent changes to personal status laws for non-Muslims, the risks related to Shari’a law application to assets also extended to guardianship of minor children. Without a will, expats risk the eldest male heir becoming the guardian, even if they aren’t involved in the children’s lives. While the new law aims to eliminate this risk, uncertainties remain, especially in Emirates without implementing regulations or specialised courts for non-Muslim issues.

In practical terms, if parents pass away, the children may end up with the police or child protective services until a lawful guardian is recognized through a court application. This process involves guardians travelling to the UAE, document translation and legalisation, navigating UAE court bureaucracy, incurring legal and court fees, etc. The children may have to live in an unfamiliar environment, compounding the trauma of losing their parents.

A DIFC registered Guardianship Will will streamline this. It quickly provides a document recognizing the guardian’s role within two weeks. If the testator wants to appoint someone abroad as a permanent guardian, DIFC wills also allow for a temporary guardian, ensuring the children are cared for by a trusted friend while the permanent guardian plans to travel to the UAE.

Keep in mind that the DIFC requires a signed witness statement from each appointed guardian, whether permanent or temporary.

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-part-1/