A Will is a mandatory assignment for financial planning, it forms the legal document to protect the estates and hand it over to the loved ones in case of sudden demise of the signatory of the Will.
Writing a Will enables to distribute assets, shares, or any valuables according to ones own wishes and it gives peace of mind to the signatory. Creating a Will also provide the legal protection to rightfully distribute the estates, and take care of any minor children at the event of any unforeseen circumstances.
So, for Expatriates in UAE preparing a Will is an essential requirement to plan their future the right way. It will help them to plan the investment effectively and ensure the loved ones receive the right benefits in case the signatory passes away. The process of registering the will is almost similar across the jurisdictions in the UAE.
Why is having a Will essential in the UAE?
As an expat living in UAE, there are few legal regulations that will be applicable to assets and estates based in the UAE:
- UAE follows Shariah Law for distribution of assets. Non-Muslims, however, are given the option to choose to opt out of the application of the Shariah Law for the distribution of their assets in the UAE.If the signatory does not have a Will, Shariah Law is applied by default to the distribution of all the assets in the UAE.
- In the absence of a Will, the guardianship of children below 21 years of age may be determined by the courts as per the UAE Law.A duly registered Will can ensure the appointment of the wife as the guardian of the minor children.
- For security and safety of the financial assets, bank accounts, other valubles, having a Will is helpful.
- The bank accounts, single as well as joint account will be frozen upon the death of an individual. Hence, for the spouse to have control over the bank account the Will comes handy.
- The dependent’s visas are cancelled and will be given a one-month grace period to stay in the country for the proceedings and then leave to the home country. A Will helps in claiming the rights during such instances.
Difference between WILL in UAE & Power of Attorney
Will comes into effect only after the signatory’s demise. However, the Expats in UAE must register a Will as per their desired wealth distribution to their family. Also, the Will prepared in the home country must be re-registered in UAE through a legal process. The Will can be exercised by the family members and distribute the assets in UAE as per the Will.
Expats in UAE who are working or have a business and have a significant volume of assets in terms of land, buildings, business capital, financial investments, etc., must prepare a Will and Register it with the Dubai Courts or DIFC juridical. Thereby, making the Will active in the UAE.
So, preparing a Will safeguards all your assets based in UAE to be distributed as per your wish to the family members. The process of registering a Will is easy and follows a few simple steps. The Cost of Registration of a Will in Dubai varies depending on the jurisdiction. For the Abu Dhabi Juridical, the cost of registering a Will is around AED 4,000. There will be an additional fee for any amendments and also for administrative assistance.
Power of Attorney (POA)
Power of Attorney is a legal document to transfer the ownership or Authority for a specific period. It is mainly to transfer the operational ownership of a company or property such as a Hotel, Commercial Real Estate, Residential Real Estate, or any business functioning, etc., for a specified contract period.
POA can be also prepared for authorizing bank account operations, real estate sales coordination, and many business investment coordination, etc. POA is provided to the recipient from the signing authority in the event of transferring the operational and ownership power for a specified period. Whereas, a POA holder gets the right to act on behalf of the grantor, while grantor is alive. It is always safe for the expats to have a POA & Will registered in UAE.
The Types of Wills In The UAE Can Be Broadly Classified As:
Wills for Non-Muslims
If Non-Muslim Expats living in UAE at the event of their death do not have a Will, there is a risk that the estates would be subjected to Shariah Law and the assets will be distributed accordingly. It will not be aligned with the wishes of the signatory to distribute his/her assets. Therefore, having a Will to protect the estates and for appointing guardians for the children (minors) is essential. So, Expats living in the UAE must prepare a Will with detailed asset distribution and ownership requirements. Guardianship of minors is an essential aspect to look up to while drafting a Will.
In UAE, an Expat can prepare their Will and Register in Dubai Courts, DIFC, and Also in Abu Dhabi Juridical. All of them accept Expatriate Will from all over UAE. Depending on the specific requirement there are a few types of Wills Available for the expatriates and citizens of UAE. They are Full Will, Guardianship Will, Single/Mirror Will, Free Zone Company Will, Property and Financial Assets Will. So, Expats in UAE depending on their requirements can prepare and register for their Wills.
Wills for Muslim
As a Muslim in the UAE, the Shariah Law principles will automatically apply to the inheritance and will distribute the UAE estates accordingly.
The signatory can choose a Standard Shariah Compliant Will or the UAE Muslim Will with Letter of Consent.
Guardianship Letters
Guardianship Letters are a private declaration that is intended to serve as an interim document regarding guardianship of minor children.
What are the various options of Wills available in UAE Currently?
Types of Wills that can be registered at the DIFC Wills and Probate Registry:
What are the Steps involved in Drafting a Will?
Wills for Business Owners
The company shares do not pass automatically to the shareholder’s immediate family in case of any unforeseen circumstances. It is a long process and legal proceedings to get the estates back. To avoid this writing a Will for business owners is essential. For Corporates, CEOs and Shareholders the Will comes as a great help during transferring their business assets to the family. When a shareholder dies, their shares are passed down to their heirs, as per the laws of the UAE which are governed by Sharia, or as per the Will approved by the UAE courts.
However, the distribution of the shares would be covered in the corporate instruments of the company such as the Memorandum of Association(MOA) of the company, or an external agreement. It depends on the company type. For Limited Liability Companies, the company will continue to operate upon a partner’s death (unless the MOA provides otherwise) and the shared will be passed down to the heirs. For Sole establishments and Joint Liability Companies, upon the death of a partner, the company will dissolve unless the MOA provides otherwise, or the heirs decide to continue the business
The UAE Expat Will prepared in the UAE helps to hand over assets in UAE to the signatory’s family. The Will prepared in the Home Country will not be of help in UAE when it comes to asset transfer, The Sharia Law will be applicable if there is no Will written in UAE that entitles to transfer the assets to the signatory’s family.
How Aurion will assist you?
Aurion Business Consultants will do all the necessary coordination for the Registration of Will in Dubai for non Muslims and Muslims. Our team of experts will analyze the requirements and assist our clients throughout the process of Registration of the Will. In case of any queries on Registration of Will, feel free to reach out us anytime!
