The mortality of your employees is not something one usually considers during the day to day running of a business. However for the employers of expatriate workers in Qatar it is useful to understand what happens to assets, such as real estate, cars, usufruct rights (99 year leases), company shares and bank accounts held in Qatar in the event of a worker's death. This article addresses the fate of the assets and also provides some information on the process to be followed and the documents required for the heirs/beneficiaries to secure the release of the deceased's assets.

There is a common belief that Shariah law will apply to the deceased's assets in Qatar. This is incorrect. Articles 23 and 24 of the Qatari Civil Code Law 22 of 2004, provide that the country laws of the deceased's nationality (the deceased's home country) at the time of his or her death will apply in relation to inheritance laws, even if the deceased was Muslim. Qatari law will apply only if the deceased is a Qatari national, or if an estate exists in Qatar which is left without any beneficiaries or heirs.

For the purposes of this article, we shall concentrate on the procedure of securing the release of funds from a deceased's bank account since this is by far the most common asset held by foreign workers in Qatar. It is worth noting however, that the documentation and authentication process required to release or liquidate each type of asset is identical, only the procedure will differ.

What happens to assets following the death of a bank account holder?

The bank will, as a matter of practice, freeze the bank account of the deceased immediately after being informed of the death. The bank account shall remain frozen until the deceased's beneficiaries produce an official inheritance certificate to the bank. The inheritance certificate might take different forms or have different names depending on the jurisdiction of the deceased's home country. It should be issued by the competent authority in that jurisdiction. The inheritance certificate should contain the name(s) of the beneficiaries and their allocated share. This share shall be determined by the law of the home country.

Before being submitted to the bank the inheritance certificate needs to be duly authenticated by the following:

  • The issuing authority;
  • The Ministry of Foreign Affairs of the home country;
  • The Qatari Embassy in the home country; and
  • The Qatari Ministry of Foreign Affairs.

After receiving the duly authenticated inheritance certificate, the bank shall proceed with the payment to the beneficiaries according to the information contained therein. Usually one of the beneficiaries is granted a power of attorney by the other heirs entitling him or her to withdrawal the money from the bank where the funds are being held.

If there is a will in place, the account will remain frozen until the bank receives a formal document, such as a court order, issued by the competent jurisdiction permitting the execution of the will or appointing the executor of the will. The said document and its contents may have different forms, names and conditions depending on the applicable law. Before its submission to the bank, this document must be authenticated by the same authorities as the inheritance certificate as listed above.

After receiving the formal document, the bank shall proceed with the payment to the executor or the beneficiaries.

Other relevant Qatari legal provisions relating to bank accounts:
Deposit account:
Article 347 of the Commercial Code provides that in the event of the death of the depositor, the deposit shall remain with the bank in accordance with the contract terms, unless the successors demand to withdraw the amount before the maturity date.

Joint account: Article 351 of the Commercial Code states that the holders of a joint account will be considered to have equal shares unless otherwise agreed in the account contract. When one of the joint account holders dies, the other holders must inform the bank of their intentions to either continue with the joint account or close it within 10 days of the date of death. The Bank will then stop any withdrawal of monies from the joint account within the limit of the deceased's portion of the total sum in the joint account, until a legal successor is appointed.

Current account: the current account will be closed upon the death of the holder. The balance of the account between the credits (the deposits) and the debts (loan, credit card etc) shall be offset, with any remaining balance becoming a debt or credit to either the bank or the account holder as the case might be.

It is worth noting that the application of the above legal provisions might face some practical difficulties and may differ from one bank to another. There is not much that can be done in advance to facilitate the procedures discussed. However, it maybe useful for employers to have a brochure or information sheet about the provisions for distribution to employees in the unfortunate event their families are required to take this action, they will be better prepared.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.