The allocation of assets among successors can be regulated by legally prepared will in UAE. The following section will discuss the need for a will.
- Even if you don’t have any assets in the UAE, it’s still a good idea to prepare a will in UAE, if you’re a resident there. This is due to the fact that in the absence of a valid will, UAE courts will follow Sharia law on a person’s standing and inheritance.
- Without a valid will, a deceased person’s property will be distributed and guardians will be appointed in accordance with Sharia law rules. For non-Muslim expatriates, this may have far-reaching consequences. For instance, financial assets like bank accounts may be seized until debts are paid in full. Until the courts settle any questions of inheritance or succession, all assets held jointly will also be frozen.
- A widow with minor children receives only one eighth of an estate under Sharia law, and this is applied automatically in the absence of a will. Furthermore, a mother does not automatically become the legal guardian of her own children upon the death of the father, in accordance with Sharia law standards.
- There is no automatic transfer of jointly held assets to the surviving joint owner under UAE law, unlike in certain other jurisdictions. In the event of the death of a shareholder who owns real estate or a business in the United Arab Emirates, the local probate rules will govern. There is no way for one shareholder to transfer their shares to another, even a family member.
- Fortunately, non-Muslim expats in the UAE can choose to have the laws of their home country, particularly those pertaining to inheritance, apply to their personal affairs. This can be done through the Dubai Courts or the DIFC Registry and the execution of a will. Inheritance is subject to the testator’s jurisdiction after death per the UAE Civil Code.
- You should make a will even if you don’t have any assets in the UAE right now since you never know when you might receive life insurance, a gratuity, compensation, or insurance because of an unforeseen event. A will can also protect your wishes for your children’s guardianship and burial.
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