For expats living in the UAE, estate planning is essential. Succession laws in the UAE affect both UAE nationals and expats. With a legal system unlike many expats’ home countries, the UAE’s inheritance laws will no doubt be vastly different from what you might expect. This can significantly impact how your assets are distributed after you die. This is particularly important for high-net-worth (HNW) individuals with property, businesses or investments in the Emirates, with a specific goal in mind when it comes to what you leave and to whom.
Thankfully, recent legal reforms to local laws and succession laws aim to provide more options for both UAE residents and non-residents. Recent legal reforms have introduced a variety of options so expats can have the same control over inheritance as they do in their home country. But there are still plenty of misunderstandings and misconceptions that keep expats confused or in the dark. Whether you’re a long-term resident or new to the UAE, understanding the rules and risks is critical to protecting the welfare and future of your family.
Below, we’ll explore:
- The changes to the law
- The steps you should take with the help of financial advisors in Dubai
- How to retain full control over your estate.
Understanding UAE Inheritance Law for Expats
By default, inheritance law in the UAE applies Sharia principles unless expats take proactive legal steps. The applicable laws in the UAE, including the Personal Affairs Law, determine how inheritance is distributed and which legal framework governs asset succession. So, you shouldn’t just assume that just because you’re an expat, your inheritance will automatically go where you want it to. This means that if no will is registered, your estate may be distributed in ways that differ significantly from what you might expect or what happens legally in your home country.
Historically, both Muslims and non-Muslim foreigners were subject to the same inheritance regime under the laws in the UAE, with Sharia-based rules applying by default. Sharia-based inheritance means male relatives receive a larger share than female relatives, the spouse won’t automatically inherit the entire estate, and other members of the family may inherit a certain share.
Now, non-Muslim residents can opt out of the default rules by following specific legal procedures, such as registering a will under the relevant applicable laws. This legal default applies to all residents in the UAE, unless formal documentation overrides it. So, if you have specific wishes for your assets and estate, you need to take steps to establish what these are with a legal will that outlines everything in full.
The Role of Sharia Law in the Absence of a Will
If an expat dies in the UAE without a registered will, Sharia law is automatically applied by the local courts to divide the estate among their surviving family members, making it essential to consider proper estate planning and Sharia-compliant investing. UAE courts require a death certificate to begin the process of distributing the deceased’s assets.
Under Sharia law in the UAE for expats:
- The surviving wife may receive only one-eighth of all the inheritance if there are children.
- Sons typically inherit twice as much as daughters.
- Jointly owned property may be frozen during probate proceedings, causing financial hardship for surviving family members.
In some cases, the estate may be divided among the heirs of the deceased equally, depending on the applicable legal framework.
This is often very different from the laws in many expats’ countries of origin, so it tends to come as a shock to families used to common law inheritance systems, where spouses and children are the primary beneficiaries.
Can Non-Muslim Expats Avoid Sharia Law?
Thankfully, for expats living in the UAE, there are now processes in place to make sure they can distribute their assets however they like in the event of their death. Recent federal decree laws, such as Federal Decree Law No. 41/2022 on Civil Personal Status, have introduced new options for non-Muslim foreigners residing in the UAE. In 2020, changes to the law made it possible for non-Muslim expats to opt out of Sharia-based inheritance, provided the correct legal steps are taken.
This includes:
- Registering a non-Muslim will in the DIFC Wills Service Centre (Dubai), Dubai courts or Abu Dhabi Judicial Department (ADJD)
- Including clear instructions in the will that foreign law should apply
- Ensuring the will explicitly covers assets in the UAE
These legal instruments allow you to override the default application of Sharia law and ensure your inheritance is distributed in a way you’d prefer. These options are based on the provisions of the UAE Civil Code, Civil Transactions Law and other relevant federal laws and decree laws, including Federal Decree Law No. 41/2022 on Civil Personal Status.
The Importance of Having a UAE Will for Expats
Creating a UAE Will is the most effective way to protect your spouse and children, ensure your estate is distributed according to your wishes and avoid lengthy probate delays and asset freezes. The provisions stipulated by UAE law require proper will registration to ensure legal recognition.
There are two primary jurisdictions for will registration in the UAE:
- DIFC Wills Service Centre: Civil system tailored for expats
- Abu Dhabi Judicial Department (ADJD): Allows for bilingual wills and covers all Emirates
Coordination with foreign affairs may be necessary when dealing with wills from other jurisdictions to ensure proper legal recognition and compliance.
To learn more about how a will protects your assets, read our guide on Wills in the UAE.
Minor Children and Guardianship
When it comes to estate planning in the UAE, safeguarding the future of minor children is a top priority for both Muslim and non-Muslim expats. Under the UAE Personal Status Law, guardianship and custody are distinct legal concepts. Typically, the father is recognised as the legal guardian of minor children, responsible for their financial affairs and major decisions. In the unfortunate event of the father’s death, while the mother may be granted custody, the guardianship, especially over financial and legal matters, may default to the closest male relative on the father’s side, as stipulated by the personal status law.
For non-Muslim expats, the law provides an important opportunity. By creating a registered will in the UAE, you can nominate guardians for your minor children, ensuring your personal wishes are respected. This is particularly crucial for families who want to avoid uncertainty or disputes over guardianship. The Dubai International Financial Centre (DIFC) Wills Service Centre and the Abu Dhabi Judicial Department (ADJD) both offer robust frameworks for nominating interim and permanent guardians through the will registration process.
Given the complexities of the UAE personal status law and the potential for different interpretations, seeking professional legal advice is essential. A properly drafted and registered will not only secure your assets but also provide peace of mind that your minor children will be cared for by the guardians you trust, in accordance with your values and intentions. Whether you’re a Muslim or non-Muslim expat, taking proactive steps to nominate guardians through the DIFC Wills Service or ADJD can make all the difference in protecting your family’s future under UAE law.
DIFC and Wills
The Dubai International Financial Centre (DIFC) Wills Service Centre has become a cornerstone for non-Muslim expats seeking to manage their inheritance matters in the UAE with confidence and legal certainty. Unlike the default application of Sharia law, the DIFC Wills Service Centre operates under common law principles, allowing non-Muslims to register wills that reflect their personal wishes, free from the constraints of Sharia inheritance rules.
One of the key advantages of the DIFC Wills Service is its flexibility. Non-Muslim expats can register wills that cover not only their UAE assets but also their worldwide estate, ensuring a comprehensive approach to succession planning. The DIFC Wills and Probate Registry Rules are designed to provide clarity and avoid the legal ambiguities that can arise when Sharia-based rules are applied by default. This means your assets, including real property located in the UAE, bank accounts and business interests, can be distributed exactly as you intend.
The registration process with the DIFC Wills Service Centre is streamlined and can be completed online, making it accessible for expats with busy schedules. By registering your will with the DIFC, you ensure that your estate will be administered according to your instructions, rather than being subject to Sharia inheritance rules. This not only protects your family members and legal heirs but also minimises the risk of disputes and delays in the local court system.
For non-Muslim expats and foreigners residing in the UAE, the DIFC Wills Service Centre offers a reliable legal framework to secure your legacy and provide peace of mind. Whether you’re planning for your family, business or cross-border assets, utilising the DIFC Wills Service is a proactive step towards achieving legal certainty and safeguarding your personal affairs under UAE law.
Planning for Cross-Border Estates
Many expats in the UAE hold assets across multiple countries. Estate planning often involves navigating the laws of multiple foreign jurisdictions, which introduces additional layers of complexity when it comes to ensuring your inheritance goes to who you need it to.
Important questions to find the answers to when it comes to cross-border estate planning include:
- Does your home country recognise a UAE Will?
- Are there inheritance taxes or reporting obligations abroad?
- Will multiple wills create legal conflicts or confusion?
If you’re a HNWI, you should coordinate your estate planning with advisors in both the UAE and your home country to ensure tax efficiency and legal clarity, and to ensure the protection of your assets across jurisdictions.
This also prevents there from being any legal complications in the event of your death, so your family receives the funds in accordance with your wishes, and there aren’t any long and expensive delays.
Why Professional Advice Matters
Inheritance law in the UAE isn’t just complex, it’s constantly evolving, which means it can be incredibly difficult to keep on top of. For HNWIs with international estates, a generic solution simply isn’t good enough.
At MHG Wealth, we provide personalised advice that aligns legal strategies with your personal and family values, estate plans with cross-border tax structures and inheritance protection with long-term financial goals.
We also guide clients through the DIFC or ADJD Will registration processes and coordinate with legal professionals in your home country where necessary, to make sure there are no unwelcome surprises in the event the worst should happen.
Explore our financial advisory services in Dubai to protect your estate and plan for the future with confidence.
Key Takeaways
- Without a registered UAE Will, inheritance for expats may default to Sharia law, which can lead to asset distribution outcomes very different from your intentions.
- Recent legal reforms mean non-Muslim expats can opt out of Sharia rules by registering a DIFC or ADJD Will that clearly sets out how their estate should be handled.
- For high-net-worth expats with assets across multiple countries, coordinated estate planning and professional advice are essential to avoid delays, disputes and unintended consequences.
Plan For Tomorrow Today
Planning your estate in the UAE isn’t just a legal formality; it’s an important step in protecting your family, your assets and your legacy.
Without a will, Sharia law may apply by default, which may mean profound changes to how you would like your family to receive inheritance. However, legal reforms now allow non-Muslim expats to opt out by registering a UAE Will.
Don’t leave your legacy to chance. Get in touch with an MHG Wealth advisor today to start your personalised inheritance planning journey.
UAE Inheritance Law FAQs
Can you use a foreign will in the UAE?
It may be recognised, but unless it’s properly translated, notarised and ratified by UAE authorities, there may be legal complications or delays. A UAE-specific will is generally safer.
Will your children automatically inherit your estate?
Not necessarily. Under Sharia law, inheritance is divided based on a fixed formula, and children’s shares vary by gender and family structure.
What happens to jointly owned property?
Joint accounts or properties may be frozen until the estate is settled, causing potential financial difficulty for surviving spouses or business partners.
Do you need a separate will for each country you hold assets in?
Yes, in most cases. Having jurisdiction-specific wills ensures your assets are distributed according to the relevant laws and helps avoid probate delays or legal conflicts.
