Succession in the UAE: how does it work? We asked our expert, Marianna Celeste, Legal Assistant of the Tax & Legal Department of Kelmer Middle East.
The law on succession mortis causa with a will in the United Arab Emirates defines inheritance as the compulsory transfer of property and financial rights upon the death of the deceased (de cuius) to their successors, involving the transfer of the deceased’s assets to their direct and/or indirect descendants, ascendants, or other beneficiaries duly indicated in the testamentary will. In the absence of a will from a non-Muslim testator in the UAE, the procedure for disposing of the deceased’s assets can be complex.
It should be noted that in the UAE, holographic wills or similar forms of testamentary disposition are not recognized. For a will to be valid, it must be executed before a local notary or registered in the DIFC Court for the Emirate of Dubai.
When there is no will registered in the aforementioned forms, in case of legal actions aimed at asserting real or alleged succession rights upon the death of a subject, personal or joint bank accounts, as well as investments made in the United Arab Emirates, can be immediately frozen, initiating a long and complicated legal process.
Over the years, due to the increasing number of people holding various assets in the emirate, the government of the United Arab Emirates has made changes to the laws on succession mortis causa to promote greater progressivism, ensuring that non-Muslims can somehow bypass the strict Islamic laws. In matters of inheritance, expatriates are allowed, provided it is mentioned in the testamentary dispositions, to use the law of their country of origin in accordance with the wishes expressed in the same document.
Sharia, Islamic law, provides that two-thirds of the inheritance is allocated to legal heirs according to the indispensable rules, while one-third can be freely disposed of by will. There is no legitimate share. Sharia gives priority to male and legitimate blood heirs, who always receive double the inheritance compared to a female heir of the same degree. The calculation of the inheritance share due is complex, as it is characterized by specific percentages for wife, male children, and female children.
Illegitimate and adopted children are excluded from any participation in the distribution of the assets forming part of the inheritance.
It is crucial to understand that to protect one’s assets, it is essential to draft and register a will, bearing in mind that in the absence of heirs, assets located in the United Arab Emirates will transfer to the state’s asset base.
The importance of having a valid will in the UAE is even more pronounced in terms of protecting one’s family in the presence of minor children. In the case of minors or individuals who are not fully mentally capable, federal law provides for the appointment of a guardian. In this case, too, a complex legal process may be initiated for the recognition of the legal guardian, especially if the surviving spouse is the wife.
In conclusion, for those living or simply owning assets in the territory of the Emirates, it is advisable to have a legally valid will in the territory to avoid encountering issues in matters of succession and custody of minor children or incapacitated individuals determined by the local legal system governed by Sharia law, which is culturally very different from our laws and practices in this regard.
For further assistance, please get in touch with our office in Dubai.