Securing Your Assets in the UAE by Registering Your Will

In a country like the UAE, where the expatriate population is higher than nationals, the inheritance laws are obviously a matter of concern for many among us. This short write up is going to discuss two important questions which are:

• Whether the principles of inheritance in our home country will prevail over the UAE’s principles of Sharia.
• Whether the applicability of the UAE law is limited to UAE nationals, or to all Muslims, or even to all expatriates irrespective of their nationality and religion.

Fundamentally, the UAE inheritance laws are governed by two Federal Laws, the UAE Civil Code and the Personal Affairs Law of No.28 of 2005.

What happens if a non-Muslim dies intestate in the UAE?

Dying intestate is when a person dues without writing or registering a will. According to the UAE Civil Code, if a person dies intestate (without leaving a will), the courts may adhere to the Sharia laws with regard to the inheritance of assets and custody of children. Once a non-muslim expat dies in the UAE (dies intestate) all his assets including bank accounts will be considered in a frozen state.

This means no further transaction will be allowed on the same before the law interferes and decides as to the asset distribution.

If the death took place outside the UAE, the legal representative has to produce the death certificate (after relevant procedures of MOFA, Embassy and Ministry of Justice attestation) before the court along with the passport copies of the legal heirs and also the proof of assets, such as original title deed in case of property, bank details in case of bank accounts, trade license in case of company shares...etc.

Along with the above documents, an application for Legal Heir Certificate has to be applied. The legal heirs have to produce two male witnesses of the same religion to recognize the legal heirs before the court, after which, the court will release a legal heir certificate. In the Legal Heir Certificate, the proportion of shares for each legal heir would be mentioned as per the calculation under Sharia law.

In the absence of a will, the assets will be distributed to the legal heirs as per Sharia law only. Under Sharia law, if the deceased is survived by mother, father, wife and three children in which one is a son and the other two are daughters, the proportion of share each will receive will be as follows:

- The wife shall receive 1/8th The mother and father shall get 1/6th each. After these three parties have received their respective share, the remaining wealth will be distributed among the son and daughters, with the son getting the share of two daughters (i.e. a male child gets double of a female child).

This is irrespective of the fact whether or not the non-Muslim expatriate has a legally recognized will in his/her home country.

In other words, the descendants can apply for probate in the home country upon the demise of a family member, which will allow them to distribute the UAE assets in the manner that the deceased person would have wished. Further, the UAE Civil Code deals with the distribution of movable assets.

The UAE Civil Code provides that the law of the home country of an expatriate will apply to determine how movable assets (cash, investments, cars, personal items...etc) will be distributed. However, with regard to immovable property, Article 17 (5) of the Code states that “the law of the UAE shall apply to wills made by alien disposing of their real property located in the state.”

To clear this dilemma, the Wills and Probate Registry was established as an ancillary body of DIFC’s Dispute Resolution Authority (DRA) under Resolution No. 4 of 2014 issued by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the President of the Dubai International Financial Centre (DIFC).

The Registry has been established under the jurisdiction of the DIFC Courts, allowing it to operate as a distinct entity. Now, the non-muslim expats can register their wills in the DIFC and can find a peaceful settlement of their immovable property in the UAE.
 

Different authorities under which you may register your will:

• DIFC Wills Service Center (jurisdiction only in RAK and Dubai)
• Dubai Courts (All over the UAE)
• Abu Dhabi Judicial Department (All over the UAE)

There are two types of wills:

• Single Will: is an individual will
• Mirror Wills: are will generally meant for a husband and wife in which one will reflect the other.

DIFC Wills Service Center

The Testator [the one writes a will is Testator] may register his Will with DIFC. Please note that DIFC has jurisdiction only over the assets in Dubai and Ras Al Khaimah. As you know DIFC offers the convenience of registering your Will in English whereas the other jurisdiction it is mandatory to register the WILL either in Arabic or Bilingual (Arabic and English).

Moreover, DIFC probate offers easy for the executor to execute the WILL once the testator expires. Despite all the convenience offered you may find DIFC Will Service Center a bit expensive as the fees are calculated in US Dollars.

Registering your Will with Abu Dhabi Judicial Department (ADJD)

ADJD has introduced a separate office for Non-Muslim will registration since August 2017, which has made the entire will registration process easier and cost-effective.

ADJD has introduced a separate office for non-Muslim wills which have made the process of will registration easier in the UAE and in addition to being cost-effective. The entire process can be completed online. Once you draft the will as per your requirements and as per the format prescribed by ADJD, you have to upload the same in the ADJD portal.

Before uploading, you have to translate the entire document by an approved legal translator as well. Moreover, you need to collect the translator's stamp on the will before uploading. Then scan and upload the same. During the online procedure, you will have to add the details of the testator and also choose the place for registration.

Before that, you have to create an account of your own to upload your will and other required documents. The required documents for will registration in ADJD are as follows:

• Passport copy of the Testator (One who writes his will is known as testator)
• Visa page and Emirates ID (If the party permanently resides in UAE)
• Title deeds of the property (if there is a mentioning of specific properties)
• Ownership details of any vehicles (if there is a mentioning of specific properties)
• Share certificate and trade license copy if you want to register your own company's assets in your will
• The legal translator's ID and registration certificate copy

It is worth noting that while uploading the will, you will have to upload the passport copy or Emirates ID only. The rest of the documents shall be submitted on the day of registration.

Once the will is approved by the department after verification and scrutiny, you will have to make a payment AED 950 online for Single Will and AED 1900 for Mirror Will. The Single Will is an individual will and Mirror Wills are identical wills which reflect each other; for instance, where one person in a couple leaves his/her estate to the other in the event of passing away.

Once the payment is recorded, the department will issue date of appointment on which you can personally go and register your wills.

Apart from the above two, one may register his/her will in any of the UAE courts with a simple procedure of notarization.

Written by:

Rajasree Ravivarma | Hussain Lootah & Associates