The Emirates attract people worldwide with appealing conditions for living, conducting business, and investing. Whether you want to acquire a luxurious villa or open an offshore company, the issue of estate planning becomes relevant as soon as you acquire your assets. If you don’t take care of your will in time, when the moment comes, your property will be distributed according to local laws. There’s a chance it might end up in Sheikh’s hands. In other cases, it will be mainly divided between men who claim to be your distant relatives, while your wife or daughter will receive only a small part.
The inheritance process in the UAE has its own specifics, and it’s better to learn about them in advance. In this article, Dubai Courts experts will reveal details about inheritance legislation and share important information on how to draft a will properly.
Inheritance legislation
In the UAE, a person’s religion, not citizenship, takes priority. Muslims can only inherit through the Sharia court. One of its important features is that male representatives are given priority. This means, for instance, that when distributing an inheritance, a brother will receive twice as many assets as his sister.
Previously, the Sharia court was the only way for all citizens to inherit. However, in 2023, inheritance rules in the UAE changed. Now, individuals of other faiths who have never before embraced Islam can choose between inheriting under Sharia law or stepping into inheritance through the new law. The latter is closer to international standards, equalizing men and women.
Laws and religion
In the UAE, inheritance has no statute of limitations, as in other countries. However, this has a downside: creditors can make claims against heirs at any time, even after 20 years.
If there is a will, an heir receives their rightful share. However, sometimes, they cannot gain full control over all assets. UAE law stipulates that part of the inheritance must be distributed among close relatives, regardless of how the will was drafted.
Anyone can make a will in the Emirates once they turn 21. You’re allowed to amend it as many times as you wish, provided that the latest version is notarized. It’s crucial to note that if the testator converts to Islam, any previously made will automatically become null and void.
What happens if there is no will
Without a will, the court can block all bank accounts the ability to use the owner’s property, and suspend the sponsorship visa until it is determined who inherits the property. At the same time, the judicial procedure can last several months, which is inconvenient for those who live together with the testator.
Inheritance specifics of property in the UAE under Sharia law:
- The testator’s assets are distributed among all heirs living in the Emirates.
- If there are no direct heirs, a collateral male relative, such as a nephew, can inherit.
- Kinship ties are established in the presence of two men (witnesses) over 21 years old who personally knew the family progenitor.
Iinheritance specifics under international law:
- half of the property goes to the spouse, the remaining part is distributed among the children;
- all participants must reside in the UAE and have an Emirates ID to confirm this.
Free Zones specifics
The Emirates have free economic zones or “free zones”. Currently, there are about 45 of them. Laws in them may operate differently. The laws within these zones can vary significantly, but they primarily follow the European practice of British law.
That’s why heirs often purchase property anywhere in the Emirates and draft their wills in FEZs. This way, they can protect their assets from being distributed at the discretion of Sharia court and ensure they go to their intended recipient.
It is important to ensure that a will drafted in Dubai (DAFZA), for example, will be accepted in the courts of other emirates. Even better — consider obtaining an online consultation from a qualified lawyer with experience in such matters. Our experts, who have spent many years registering legal documents within the GCC, can assist you with this.
Collections and payments
There is no inheritance tax in the Emirates. However, there is a nuance: if the inheritance has already been distributed by a Sharia court and it is discovered that all rights to the property belong to one person according to the will, or other participants decide to renounce their inheritance, a new court proceeding will be necessary.
In the case of re-distribution of property, a real estate tax of around 4% will apply.
How to avoid difficulties? What to consider?
What points to include in a will in the UAE?
To ensure that the intended heir avoids difficulties, it is important to properly draft a will in the UAE. The will should include:
- full name of the testator;
- religion of the testator;
- the residence address of the testator;
- the names of all heirs, their degree of kinship;
- order of distribution of assets among relatives;
- names of the will’s defense witnesses.
Types of wills
The UAE recognizes various types of wills, such as:
- FullWill — covers child custody and includes all types of assets.
- PropertyWill — relates to the inheritance of real estate in the UAE.
- GuardianshipWill — allows the appointment of guardians for children living in the UAE.
- FinancialAssetsWill — allows the management of bank and brokerage accounts.
- BusinessOwnersWill — helps distribute company shares.
In each document, you can specify up to 5-10 items. You can clarify these nuances with our experts.
Online will registration in the UAE with our company
Dynasty Business Adviser boasts a team of highly skilled professionals with 8 years of experience in drafting and formalizing wills. We offer this service both personally and remotely through a secure platform. You can access our legal consultations online from anywhere in the world. We respond to queries 24/7, as we value our clients’ time.
How to properly draft a will
Drafting a will can be done in any format, but there are numerous nuances to consider. We recommend entrusting this task to our experts. All we need from you for us to help draft your will correctly is information about the assets being distributed, details of your relatives residing in the country, and documents verifying these facts. The steps of the procedure are outlined in the following section.
Online notarization
The online notarization procedure consists of simple steps:
- Go to this page and select the document you need.
- Click the order button and carefully review the service description. Then, fill out all fields and click the payment button.
- Our manager will contact you within a few minutes after purchasing the service to arrange a meeting with a notary.
- During the video conference, you will need to show a document confirming your identity. The presence of heirs is not required.
Required documents
To apply for a will drafting, you’ll need your international passport or Emirates ID (for UAE residents) and copies of identification documents for all participants. Additionally, the following documents may be required:
- Copy of the testator’s passport.
- Purchase and sale agreement (if applicable).
- Documents confirming ownership rights shares in a company.
- Identity verification of the witness.
Conclusion
In this article, we have discussed the key aspects of UAE legislation and inheritance. To ensure that your loved ones can benefit from the assets you have earned during your lifetime in this country, it is recommended to consult professionals. We are always happy to help with this issue.
