Introduction
Planning for the future is essential, especially when living abroad. In the UAE, having a legally valid will is crucial to ensure that your assets are distributed according to your wishes and your family is protected.
Why Do You Need a Will in the UAE?
1. Protecting Family and Heirs: A will guarantees that your loved ones, including children and dependents, are cared for according to your wishes.
2. Ease of Probate: A valid will simplifies the probate process, making it quicker and more straightforward for your heirs to access your assets.
3. Property Ownership: Whether it's a bank account, real estate, or business interests, having a will helps clarify how these assets are managed after your passing.
4. Guardianship for Minor Children: A will allows you to appoint guardians for your children, ensuring their future care and well-being.
Types of Wills in the UAE
1. Dubai International Financial Centre (DIFC) Wills: These are often used by non-Muslim expatriates and can cover assets in Dubai and Ras Al Khaimah.
2. Local Wills: For assets and properties in other emirates, a locally registered will be necessary. For example for assets in Abu Dhabi, the will should be registered with ADJD Family Court.
3. Custom Wills: Depending on your nationality, assets, and personal preferences, you can create a custom will that reflects your unique circumstances.
How the New Law Benefits Non-Muslim Expatriates
Under the Federal Decree Law No. 41 of 2022 on Civil Personal Status, significant changes have been introduced regarding wills and inheritance for non-Muslim residents in the UAE. The developments aim to provide clarity, autonomy, and flexibility for expatriates wishing to distribute their assets according to their preferences, while avoiding default application of Sharia law. Furthermore, the Law was complemented by Cabinet Decision No. 122/2023 on the Implementing Regulation of the Law.
Here’s an in-depth look at these changes:
1. Civil Inheritance for Non-Muslims
One of the most significant developments is the introduction of civil inheritance rules for non-Muslims, marking a departure from the automatic application of Sharia law in the absence of a will. Under this law:
Non-Muslims can now dictate how their assets will be distributed through a civil will.
If a non-Muslim resident passes away without a will, the law provides that inheritance will follow the regulations of the deceased's home country, unless the deceased explicitly stated otherwise.
This offers expatriates greater control over their estate, allowing them to distribute their assets freely among family members, friends, or charities without the restrictions imposed.
2. Simplified Will Drafting Process
The new law promotes the ease of drafting wills for non-Muslims by allowing them to specify their wishes regarding asset distribution and guardianship of their children, making the will-writing process more straightforward and transparent.
Non-Muslim residents no longer need to go through overly complex procedures to ensure that their assets are distributed according to their intentions.
3. Joint Ownership and Spousal Rights
The law allows non-Muslim spouses to jointly own assets such as property, bank accounts, and business interests, with clear provisions on how these assets should be managed upon the death of either spouse.
In cases where no will exists, the surviving spouse may be granted a larger portion of the deceased’s estate under civil law, as opposed to the smaller portions typically allocated under Sharia law.
4. Wills for Guardianship of Children
The decree allows non-Muslims to explicitly state their wishes concerning the guardianship of their children in the event of their death. This is especially important for expatriates who may have concerns about their children’s future care.
5. Cross-Border Asset Management
Expatriates often have assets in different jurisdictions. The decree allows non-Muslims to manage the inheritance of assets located outside of the UAE in a coordinated manner, ensuring that their will reflects their global assets and desires.
While non-Muslims can specify which law will apply to their assets, such as their home country’s legal system, the law also respects international treaties to ensure that the UAE's will provisions are recognized abroad.
6. Clear Guidelines for Executors
The law clarifies the roles and responsibilities of executors (the people responsible for carrying out the will’s instructions). This transparency reduces potential disputes and ensures that the will’s provisions are respected and carried out effectively.
7. Importance of a Will Even with the New Law
Although the new law provides more flexibility and aligns civil personal status with non-Muslim needs, drafting a clear and legally valid will is still crucial for non-Muslim residents and non-residents. A well-drafted will ensure that their personal preferences regarding inheritance, guardianship, and asset distribution are honored.
Key points that a will should cover
A. Testator’s personal information
B. Funeral expenses. Expenses for administering the estate and executing the will.
C. Wages of the will executor and estate administrator.
D. Debts owed by the estate, according to the privilege levels stipulated in current legislation.
E. Beneficiaries' personal information.
F. If applicable, mention the guardianship of minor children.
G. The will shall include the appointment of a will executor, and a statement of how to dispose of the requested money.
H. The will shall be signed by the testator, or bear his seal or fingerprint in the presence of two witnesses.
Fees for registering wills in different UAE jurisdictions
1. DIFC Wills Service Centre
Single Will: AED 10,000
Mirror Wills: AED 15,000
Guardianship Will: AED 5,000 (Single), AED 7,500 (Mirror)
Property Will: AED 7,500 (Single), AED 10,000 (Mirror)
Business Owners Will: AED 5,000 (Single), AED 7,500 (Mirror)
Financial Assets Will: AED 5,000 (Single), AED 7,500 (Mirror)
The process can be completed online via video conferencing, allowing for remote registration.
2. Abu Dhabi Judicial Department (ADJD)
Single Will: AED 950
Mirror Wills: AED 1,900
This is a more cost-effective option compared to the DIFC, and registration can be done either in person or through video conferencing for non-Muslim residents or visitors.
3. Dubai Courts
Single Will: AED 2,167
Mirror Wills: AED 4,334
Dubai Courts offer a notarization service for bilingual wills, and the registration is done in person.
These fees cover the registration of your will but exclude additional costs like translation or notary fees, which can be required depending on the jurisdiction.
Our Will Drafting Services
At Brand Activation, we provide expert drafting services, ensuring that your final wishes are legally binding and accurately reflected. Our services include:
Consultation: We begin with a thorough consultation to understand your needs and the assets you want to include in the will.
Tailored Will Preparation: Based on your circumstances, we draft a will that aligns with UAE regulations while safeguarding your interests.
Legal Review and Registration: We ensure that the will is legally valid and assist with the registration process in the relevant jurisdiction (DIFC, local courts, etc.).
Updates and Amendments: Life changes, and so might your assets or family situation. We provide services to update or amend your will as needed.
Contact us at info@brandactivation-setup.com to ensure your future and your family’s future are secure with a professionally drafted will in the UAE.