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Planning Your Estate When Your Family Lives in Different Countries
Not long ago, a family portrait would have captured everyone in a single city.
Now the same family might be spread out: a parent in Dubai, a daughter in London, a son in Toronto, and properties scattered from Mumbai to Manchester. After that parent dies, there is no one court, statute or register that sees everything they owned. Unless a deliberate plan exists, the heirs may lose years, and considerable money, working out which country's law governs which asset.
Why estates that cross borders become tangled
There is no global consensus on how an inheritance should be handled. Certain countries look to the deceased person's nationality, others to the country where they last habitually lived, and many defer to the law of the place where the asset sits, particularly where land is concerned. One estate may therefore fall under several legal regimes simultaneously.
Substantive rules vary just as widely. Common law systems tend to give owners broad freedom to leave their property to whomever they choose. Civil law and Sharia-influenced systems frequently reserve fixed portions for particular family members, which is called forced heirship. As a result, a Will that is perfectly valid in one country may be partly disregarded in another.
The UAE's position
Historically, inheritance in the UAE was handled under Sharia principles by default. This has shifted substantially. Under the federal personal status law, residents can generally request that the law of their home country governs inheritance, guardianship and similar matters, rather than having them settled under Sharia.
Residents now have a number of options when it comes to registering a Will:
DIFC Wills Service in Dubai: based on common law and run in English, open to non-Muslims, and able to deal with assets located in several countries.
Dubai Courts and the Abu Dhabi Judicial Department: onshore routes that apply UAE civil law, are open to a broader group of residents, and need documents to be in Arabic or accompanied by an Arabic translation.
The routes differ in cost, language, who is eligible and how far they reach, so selecting among them is a strategic choice rather than a box-ticking exercise.
Common pitfalls
Few family disputes arise from ill will. They usually stem from documents drawn up with good intentions but without any thought for how they would interact.
Clashing Wills. Suppose a UK Will from 2008 states “I revoke all earlier Wills” and a UAE Will from 2021 contains the identical wording. Each may cancel the other, and relatives are left fighting over which one stands.
Blocked bank accounts. When an account holder dies, UAE banks will generally freeze the account until a court order identifies the heirs. Without a registered Will, waiting for that order can take several months.
Multiple probate proceedings. Where assets are spread across countries, heirs may have to open a separate case in each, with its own paperwork, deadlines and legal fees.
Surprise forced heirship. Someone excluded from a Will can still have a legal entitlement to property located in a country that safeguards close relatives.
Guardianship gaps. Many parents presume that a guardian appointed in the Will of one country will be honoured in another. In reality, the courts where the child lives normally decide.
How to build a plan that holds up internationally
No single template fits everyone, but these steps give most families a solid starting point.
Take inventory: Write down each asset, where it is located, how ownership is recorded and where each family member lives. Cover bank accounts, pensions, real estate, shareholdings, insurance policies and digital assets. An estate cannot be organised until it has been fully listed.
Choose between a single Will and several: One worldwide Will is easier to manage and works well for some families, especially when a DIFC or ADGM Will will be recognised for the assets concerned. If local law imposes particular formalities, for example on land in certain countries, separate Wills for different territories can be the safer option. In that case, each Will should state precisely which assets it covers and should avoid sweeping revocation wording that might cancel the others.
Select the governing law on purpose: A number of jurisdictions let you nominate the law that will apply to your estate. Picking one you understand, and one your advisers are comfortable working with, reduces uncertainty. Check, too, that the places where your assets are held will give effect to your choice.
Look past the Will: Some assets, including jointly held property, pensions, life insurance and accounts with named beneficiaries, can transfer outside the Will altogether. Check these nominations so that they match your intentions and do not contradict the Will.
Consider tax at the outset: Some countries levy inheritance tax by reference to the deceased's residence, domicile or nationality, others by where the asset is situated, and some do not tax inheritance at all. Relocating or retiring overseas can alter your position. Rather than scrambling to repair matters after a death, take coordinated tax advice in each relevant country in advance.
Provide for your children: Name a guardian and, where appropriate, a trustee for any minor children. Think about where they are likely to live and which court would supervise their upbringing.
Keep everything current: Marriage, divorce, a new baby, a move abroad or a property purchase overseas each justify a fresh look at your documents. As a rule of thumb, review them every few years, even if nothing seems to have changed.
An illustration
Picture an Indian national who works in Dubai. She owns an apartment in Mumbai, keeps savings with a UAE bank and has a pension in the UK.
Her husband and son live with her in Dubai, while her elderly mother lives in India. A Will registered in the UAE would safeguard her Dubai assets and let her family reach her accounts without long delays. The Mumbai apartment and the UK pension, however, are governed by their own local rules and must be dealt with separately. Ideally, a set of documents prepared with all three countries in mind would cover them, instead of unrelated forms drawn up in isolation.
Closing thoughts
The real challenge of cross-border inheritance planning is coordination rather than complexity.
The families that sidestep expensive disputes are rarely the richest ones. They tend to be those who began early, catalogued everything they own and took advice before it was needed. If your family is spread across more than one country, begin the discussion now, while everyone can still take part.
Speak to Firm Advice
No two families are alike, and the right structure turns on where your assets sit, where your relatives live and which laws are relevant. At Firm Advice, we help individuals and families assess their cross-border position, prepare coordinated Wills and guardianship arrangements, and set up practical plans well before they are required.
To talk through your estate planning, get in touch with Firm Advice for a confidential consultation.
