Introduction
In the United Arab Emirates (UAE), the rules governing wills and inheritance differ significantly for Muslims and non-Muslims.
The UAE operates a dual legal system based on Sharia law and civil law. As such the rules for inheritance and execution of wills vary depending on the religion of the deceased.
Having a will is crucial, especially for non-Muslim expatriates who may not want their estate distributed according to local Sharia principles. Without a valid will, an individual's assets will be distributed under UAE law, which could differ significantly from their home country's inheritance system.
The assets under a will include but are not limited to movable and immovable assets, whether present or future, provided that the deceased is the owner of such assets at the time of the administration of the will.
Wills for Muslims
For Muslims in the UAE, inheritance matters are predominantly governed by Sharia law, specifically through the application of Federal Law No. 28 of 2005 (UAE Personal Status Law). As per Sharia, the estate is distributed according to fixed shares prescribed in the Quran whereby specific family members, such as children, parents, and spouses, receive fixed portions of the estate.
Also,Muslims are permitted to allocate only up to one-third of their estate to individuals who are not the heirs by Sharia (for e.g., to charitable organizations or friends/non-family members). The remaining two-thirds must be distributed among the legal heirs as per Sharia law.
Additionally,male and female heirs are treated differently, with male heirs typically receiving double the share of their female counterparts.
Hence, issuing a will allows Muslims to allocate the one-third portion of their estate as they wish, beyond the fixed heirs. However, any provision beyond the one-third portion must have the consent of the Sharia heirs.
The onshore UAE courts strictly adhere to Sharia principles for Muslims' estates. Based on our practice regardless of a will in place, if the deceased is Muslim, the UAE courts ensure that the distribution of assets under such will complies with the mandatory sharia allocations considering which the courts have the final say in how the estate is divided.
Wills for non-Muslims
The introduction of Federal Decree-Law No. 41 of 2022 marked a significant shift in the UAE's legal approach to personal status for non-Muslims. The law provides a comprehensive civil legal framework for non-Muslims regarding marriage, divorce, inheritance, and child custody. It grants non-Muslims more freedom to apply their home country's laws, ensuring expatriates have greater control over their estates.
This means that they are not bound by Sharia principles and can distribute their estate according to their personal preferences.
Also,unlike Muslim wills, there are no fixed shares or limits for bequests. Non-Muslims can distribute their entire estate as they wish.
Furthermore,non-Muslims can also designate legal guardians for minor children in their will, ensuring their children's guardianship is handled as per their wishes, a significant concern for expatriates.
Also, Abu Dhabi has also established a Civil Family Court to cater specifically to non-Muslims, handling issues related to inheritance, family law, and personal status. This court provides a streamlined process for non-Muslims to have their wills recognized and executed according to their home country's laws.
Additionally, the Dubai International Financial Centre (DIFC) Wills and Probate Registry has expanded its jurisdiction to include the entire UAE, offering non-Muslims across the country an alternative to onshore courts for registering their wills. The DIFC operates under a common law framework, offering a flexible and secure option for expatriates.
In terms of registering their wills, non-Muslims have several options for registering their wills in the UAE, ensuring their estates are handled as per their instructions:
- Dubai International Financial Centre (DIFC) Wills and Probate Registry: This registry is specifically designed for non-Muslims, allowing them to register their wills under a common law-based framework. It provides clarity on asset distribution and family matters.
- Abu Dhabi Judicial Department: The Abu Dhabi Judicial Department allows non-Muslims to register their wills, giving them the option to specify that their home country's inheritance laws will apply.
- Notarization in Local Courts: Non-Muslims can also have their wills notarized in the onshore UAE courts, provided they specify the laws of their home country.
Without a valid will, the onshore UAE courts may apply Sharia principles to the estate of non-Muslims by default. Hence, it is crucial for non-Muslims to create and register a will, specifying their preference for the application of their home country's laws or their distribution wishes.
Both for Muslims and non-Muslims, the key steps for drafting and registering a Will in the UAE involves the following:
- Drafting the Will: Seek professional legal advice to ensure that your will is valid and meets the legal requirements for enforceability and/or aligns with UAE laws. For Muslims, this means complying with Sharia principles, while non-Muslims may apply their home country's laws.
- Registering the Will: Depending on your status, you can register your will at:
- Local UAE courts
- DIFC Wills and Probate Registry
- Abu Dhabi Judicial Department
- Ensure Witnesses: The will must be signed in the presence of witnesses in keeping with the legal requirements for its enforceability.
Conclusion
For all individuals, whether Muslim or non-Muslim, having a valid and registered will in the UAE is crucial to ensuring that their wishes are respected, and their estate is distributed as intended. And the recent reforms in family law and inheritance law introduced by the UAE aptly emphasizes upon and encourages issuance of wills thereby reflecting the country's aim to create a more inclusive legal system, allowing expatriates to navigate complex personal matters, such as inheritance, with ease.
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.
