As a business expert in the UAE, I often encounter individuals who, despite having significant assets and successful businesses in this vibrant economy, haven't considered the critical importance of a testament (will). This oversight can lead to unforeseen complications, prolonged legal battles, and the unintended distribution of assets, causing immense distress to loved ones.
The UAE has a unique legal landscape, blending civil law with Sharia principles. While recent reforms have provided more flexibility for non-Muslim expatriates, particularly with Federal Decree-Law No. 41 of 2022 on Civil Personal Status, a properly drafted and registered will remains the most robust safeguard for your wishes concerning real estate and business assets.
Why You Absolutely Need a Testament in the UAE
Here's why a testament isn't just a good idea, but a vital necessity for anyone with real estate or business interests in the UAE:
Overriding Default Sharia Law (for Non-Muslims): While the law allows non-Muslims to opt for their home country's laws for inheritance, this is not automatic. Without a registered will, Sharia law might still apply, especially to immovable property. Sharia inheritance principles dictate fixed shares for heirs (e.g., male heirs typically receive double the share of female heirs, and illegitimate or adopted children may be excluded), which might drastically differ from your personal wishes and lead to unintended outcomes for your spouse, children, or other beneficiaries.
Protecting Your Real Estate Assets: Many property owners, especially expatriates, assume that joint ownership or their home country's will is sufficient. This is a common misconception. In the UAE, the "right of survivorship" (where property automatically passes to the surviving joint owner) is not universally recognized. Without a specific UAE-registered will, your share in a jointly-owned property can be frozen and subjected to local inheritance laws. A will ensures your real estate, whether residential or commercial, is distributed exactly as you intend, bypassing potential complications and lengthy court procedures.
Ensuring Business Continuity: For business owners, the absence of a will can be catastrophic. Upon your demise, your company shares or business assets could be frozen, leading to operational paralysis, potential disputes among partners or family members, and even forced liquidation. A testament allows you to:
Designate specific beneficiaries for your business shares.
Appoint an executor who understands your business and can ensure a smooth transition.
Provide instructions for the continued operation or sale of your business.
Protect the interests of your employees and business partners.
Appointing Guardians for Minor Children: For families with minor children residing in the UAE, a will is indispensable for appointing interim and permanent guardians. Without a testament, the UAE courts will determine guardianship based on local laws, which might not align with your preferences and could lead to custody battles or unintended guardianship arrangements.
Avoiding Asset Freezing and Protracted Legal Processes: In the absence of a will, your assets (including bank accounts, properties, and vehicles) can be frozen by the courts until the inheritance process is completed. This can cause severe financial hardship and logistical challenges for your family during an already difficult time. A clear, registered will significantly streamlines the probate process, allowing for quicker unfreezing and distribution of assets.
Peace of Mind: Ultimately, having a testament in the UAE provides invaluable peace of mind. It ensures that your hard-earned assets are distributed according to your wishes, your family is protected, and your legacy is preserved.
Key Steps to Having a Testament in the UAE
Creating a legally sound and enforceable testament in the UAE involves several crucial steps:
Determine Eligibility:
You must generally be at least 21 years old and of sound mind.
For non-Muslims, specific provisions exist through dedicated registries.
Choose the Appropriate Registration Authority: The UAE offers several options for will registration, each with its own procedures and advantages:
Dubai International Financial Centre (DIFC) Courts Wills Service Centre: This is a popular choice for non-Muslim expatriates, offering a common law framework and flexibility in asset distribution and guardianship appointments. They offer various will types, including Full Wills, Property Wills, and Business Owners Wills.
Abu Dhabi Judicial Department (ADJD): The ADJD also provides will registration services for both Muslims and non-Muslims, allowing for dictation of asset distribution and guardianship.
Local Courts (Dubai Courts, etc.): While possible, working directly with local courts may involve more complex procedures, especially regarding the application of foreign law.
Gather Necessary Documentation: Typically, you'll need your passport, Emirates ID (if a resident), and proof of ownership for the assets you wish to include in the will (e.g., property title deeds, business registration documents, bank account details).
Draft the Will: This is the most critical step. Your will must be clear, unambiguous, and compliant with the chosen registration authority's requirements. It should meticulously detail:
The appointment of executors/trustees to manage your estate.
The appointment of guardians for minor children.
A comprehensive list of your assets in the UAE (real estate, business shares, bank accounts, vehicles, personal belongings).
Specific instructions on how your assets are to be distributed among your chosen beneficiaries (e.g., specific gifts, proportions, residuary estate).
Details of any liabilities or debts to be settled.
Translate the Will (if required): Depending on the chosen authority, your will may need to be translated into Arabic by a legal translator.
Register the Will: Once drafted, you will need to schedule an appointment for registration with the chosen authority. This often involves signing the will in the presence of witnesses. Some authorities offer virtual registration options, making the process more convenient.
Who to Contact for Assistance
Navigating the intricacies of UAE inheritance laws and will registration requires expert legal guidance. It is highly recommended to engage a specialized legal professional. Look for:
Law firms with a dedicated wills and inheritance practice in the UAE.
Lawyers experienced in drafting wills for expatriates and understanding both civil and Sharia law.
Firms registered with the DIFC Wills Service Centre as authorized will draftsmen.
These legal experts can provide tailored advice, ensure your will is legally sound, and guide you through the entire registration process efficiently.
Startuppia Can Facilitate Your Will Drafting and Submission 🤝
For those embarking on entrepreneurial journeys or managing existing businesses in the UAE, Startuppia is your comprehensive partner. While we excel in business setup, company formation, and related legal documentation, we understand that safeguarding your business's future is intrinsically linked to your personal estate planning.
That's why Startuppia now offers a smooth service to facilitate the drafting and submission of your UAE testament. When you're setting up your business with us, or managing its ongoing legal needs, you can seamlessly integrate your will planning. We'll connect you with our network of trusted legal professionals who specialize in UAE inheritance law. Our role is to ensure a smooth and efficient process, from gathering necessary documentation to coordinating with legal experts for drafting, and finally, facilitating the submission of your will to the appropriate authorities (such as the DIFC Courts Wills Service Centre or the Abu Dhabi Judicial Department).
This integrated approach means you can manage your business's legal foundation and secure your personal legacy all under one roof, ensuring a holistic strategy for safeguarding your future in the UAE.
Don't let uncertainty dictate the future of your assets and loved ones. Take the proactive step today to secure your legacy in the UAE by drafting and registering a comprehensive testament. It's an investment in peace of mind and a clear path forward for those you care about most.
Contact us to schedule a FREE consultation and learn how we can help you with your will drafting and submission.