Questions & Answers
Distributing the property of a deceased father and clearing the loans
Hello,
My father passed away on 27th, July 2020. He owns two companies, one is an LLC, and the other is a CPP. Their rents have not been paid for 5 months due to the Covid-19 effect.
1. What is the future of these companies and their accounts?
2. He also owns other assets. How can I (his son) access them?
He has no loans or any dues apart from the pending rents.
Hi,
Under the UAE laws, if anyone died, then the first thing to make is an inheritance certificate from the personal status court for which you need two witnesses.
The court will determine the legal heirs of the deceased. Generally, his wife, parents, and kids are the legal heirs and property will be distributed among them. A Son has a major part in this.
After that, they can appoint a person or jointly file a petition for all his property based in UAE which includes company shares, bank accounts, insurance, property, car, and any other property owned by the deceased to transfer to the name of the legal heirs.
After that, examine all property court orders for related authorities to transfer the assets to the names of the legal heirs. The court can issue cash money directly to you.
The remaining rent you need to solve using the remaining in the company, so the company has to pay whoever owns later.
The company will run the same. Your father’s shares will be transferred to the names of the legal heirs.
In the same petition, you mention all property details that the court will transfer to legal heirs.
It is better to take a power of attorney from all legal heirs and proceed with the petition in the court.
Feel free to contact us for further guidance.
