For expats living in the UAE, estate planning is absolutely essential. 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 in the event of your passing. 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 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 mean expats continue to be 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 ensure you protect the welfare and future of your family.
Below, we’ll explore the changes to the law and let you know the steps you should take with the help of financial advisors in Dubai to make sure you 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. So, you shouldn’t just assume that just because you’re an expat, your inheritance will automatically go where you want it to go. 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.
Sharia-based inheritance means male relatives receive a larger inheritance than female relatives, the spouse won’t automatically inherit the entire estate, and other members of the family may inherit a certain share.
This legal default applies to all residents in the UAE, unless formal documentation overrides it. So, if you have specific wishes with regards to 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.
Under Sharia law in the UAE for expats:
- The wife may receive only one-eighth of the estate 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.
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 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. 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 will in the DIFC Wills Service Centre (Dubai) or Abu Dhabi Judicial Department (ADJD)
- Including clear instructions in the will that foreign law should apply
- Ensuring the will covers UAE-based assets explicitly
These legal instruments offer a way to override the default application of Sharia law and ensure your inheritance is distributed in a way you’d prefer.
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.
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
To learn more about how a will protects your assets, read our guide on Wills in the UAE.
Planning for Cross-Border Estates
Many expats in the UAE hold assets across multiple countries. This introduces additional layers of complexity when it comes to ensuring your inheritance goes to who you need it to go 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 HNW individual, 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, so you can be confident that your assets and family are protected. For HNW individuals 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.
Conclusion
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 vast 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.
