Planning for the future is crucial, especially when it comes to safeguarding your assets and ensuring that your loved ones are taken care of after you pass away. For many expatriates and residents in the UAE, the question of what happens to their assets if they die without a Will is often overlooked, but it carries significant legal and financial implications.

In this detailed blog, we'll explore the consequences of not having a Will in the UAE, and why drafting a Will is an essential step for anyone with assets in the country.

Understanding the Legal Framework in the UAE

The UAE's legal system is based on a combination of civil law and Islamic Sharia law. While Sharia law is the guiding principle for matters related to inheritance and family, the UAE has introduced specific provisions to cater to its large expatriate population.

However, without a Will, the distribution of your assets will default to the principles of Sharia law, regardless of your religion or nationality. This may lead to outcomes that differ significantly from your intentions or the inheritance laws of your home country.

Consequences of Dying Without a Will in the UAE

Distribution of Assets According to Sharia Law

If you die without a Will, your assets in the UAE will be distributed according to Sharia law. This can result in the following:

• Spousal Inheritance: Under Sharia law, a spouse typically receives only a fraction of the deceased's estate. For example, a wife may inherit one-eighth of her husband's estate if they have children, while the rest is distributed among other relatives, such as children, parents, and siblings.

• Children’s Inheritance: Sons typically receive a larger share of the inheritance compared to daughters. This may conflict with the intentions of those who wish to distribute their assets equally among their children.

• Exclusion of Certain Relatives: Non-Muslim relatives, such as parents or siblings who reside outside the UAE, may not inherit anything under Sharia law.

Bank Accounts and Financial Assets

Upon your death, your UAE bank accounts may be frozen until the legal process of distributing your assets is completed. This can include joint accounts, which means your spouse or other joint account holders may lose access to funds during the probate process. The distribution of these funds will be subject to Sharia law unless a Will clearly specifies otherwise.

Real Estate and Property

Any property owned in the UAE will also be subject to Sharia law if you die without a Will. This can create complications, especially if the property is jointly owned or if you intended for the property to go to a specific individual. The lack of a Will may result in the property being divided among multiple heirs, leading to potential disputes or forced sales.

Business Ownership

If you own a business in the UAE and die without a Will, your shares or interest in the business will be distributed according to Sharia law. This can create complications for your business partners and may not align with your intended succession plan. Without clear instructions in a Will, the future of your business could be uncertain, potentially leading to operational disruptions or disputes among heirs.

Guardianship of Minor Children

If you have minor children and pass away without a Will, the guardianship of your children will be determined by the UAE courts in accordance with Sharia law. This may result in the appointment of a guardian that you may not have chosen, and your children’s future may be decided by the court rather than by you.

Debts and Liabilities

Any debts or liabilities you have at the time of your death will be settled from your estate before any distribution of assets. However, without a Will, the process of settling debts and distributing the remaining assets can become more complex and time-consuming, potentially leaving your heirs with less than you intended.

The Importance of Drafting a Will in the UAE

Given the potential consequences of dying without a Will in the UAE, it is clear that drafting a Will is essential for anyone with assets in the country. Here are the key reasons why:

1. Control Over Asset Distribution

A Will allows you to clearly outline how you want your assets to be distributed after your death. You can specify who inherits your property, bank accounts, investments, and other valuables, ensuring that your wishes are honoured and that your loved ones are provided for according to your intentions.

2. Protection of Spouses and Children

By drafting a Will, you can ensure that your spouse and children are adequately provided for, regardless of the inheritance laws that might otherwise apply. This is particularly important in cases where you wish to distribute your assets equally among your children or provide for a spouse who might otherwise receive a minimal share under Sharia law.

3. Business Succession Planning

A Will enables you to plan for the future of your business by designating who will take over your shares or interest in the company. This can help ensure a smooth transition and prevent potential disputes among business partners or heirs.

4. Appointment of Guardians for Minor Children

If you have minor children, a Will allows you to appoint a guardian of your choosing, ensuring that your children are cared for by someone you trust. This can provide peace of mind, knowing that your children’s future will be in good hands.

5. Avoiding Legal Disputes and Delays

A Will can help prevent legal disputes among your heirs by providing clear instructions on the distribution of your assets. This can also expedite the probate process, reducing the time and complexity involved in settling your estate.

How to Create a Will in the UAE

Creating a Will in the UAE requires careful consideration and adherence to local laws. Here are the steps you should follow:

1. Consult with a Legal Professional

It’s essential to consult with a lawyer who specializes in UAE inheritance laws and estate planning. They can help you draft a Will that is legally binding and aligned with your wishes.

2. Identify Your Assets and Heirs

Make a comprehensive list of your assets, including property, bank accounts, investments, and business interests. Decide how you want these assets to be distributed among your heirs and specify this clearly in your Will.

3. Appoint an Executor

Choose a trusted individual to serve as the executor of your Will. This person will be responsible for ensuring that your wishes are carried out and that your estate is settled according to your instructions.

4. Consider Guardianship

If you have minor children, include a provision in your Will for the appointment of a guardian. Make sure to discuss this decision with the chosen guardian in advance.

5. Register Your Will

Non-Muslim expatriates in the UAE can register their Will with the DIFC Wills Service Centre and both Muslims and Non-Muslim expats can register their Will with the Abu Dhabi Judicial Department. This ensures that your Will is recognized and enforceable under UAE law.

6. Regularly Review and Update Your Will

Your circumstances may change over time, so it’s important to review and update your Will regularly. This ensures that your Will remains relevant and reflects your current wishes.

To conclude, dying without a Will in the UAE can lead to unintended consequences. By taking the time to draft a Will, you can ensure that your assets are distributed according to your wishes, your business continues smoothly, and your loved ones are protected.

At Firm Advice, we understand the complexities of estate planning in the UAE. Our experienced legal professionals can guide you through the process of creating a Will, ensuring that your future and the future of your loved ones is secure. Contact us to learn more about how we can assist you in drafting a Will that meets your needs.