Protecting Your Assets: Why do you need a Will in the UAE?

If you are an expat living in the UAE, then this article is a must read. As you may be aware, the UAE is governed by the Sharia law. This applies to your real estate property, bank accounts and investments as well at the time of inheritance. This means that if a Will is not in place, the distribution of your assets could take place among your spouse, children, parents and siblings. To avoid this, we explain the importance and advantages of having a Will in place below.

1. Protection of assets

Registering a Will with the Courts gives you the option to include all your assets in the Will. This is including but not limited to your bank accounts, properties, vehicles, investments etc. Your assets are hence protected fully once your Will has been registered with the Courts. At the time of implementation of the Will, all your executor is required to do is show proof of these assets along with the death certificate and identification of all parties involved (testator, executor and beneficiary).

2. Distribution of assets as per your wishes

The next advantage of having a Will registered with the Courts is that you can choose to distribute your assets to the beneficiaries of your choice. Your “Estate” (as this is more commonly referred to while drafting a Will) can be given, for example, 100% to your spouse. Furthermore, under the Will you have options to include substitute beneficiaries, should your primary beneficiary predecease you. This avoids the hassle of re-writing the Will every time a beneficiary passes away.

3. Appointment of guardians

Leaving your assets aside, another worrying aspect as an expat living in the UAE is checking up on the guardianship of your children after your demise. This is resolved by having a Will in place. Similar to your beneficiary, your spouse can also be appointed as your primary guardian to care for your children after your demise. In the unfortunate event of your spouse predeceasing you, there is also the option to appoint substitute permanent guardians. If your substitute permanent guardians are outside the UAE, you have the provision to include interim guardians on the Will, until such time the permanent guardians can take over guardianship of your children.

4. Appointment of executors

At the time of your demise, the Will has to be executed in order to distribute assets to your desired beneficiary as well as award guardianship to the guardian as per the writings on the Will. Just like the beneficiaries and guardians, you can appoint alternate executors, should your primary executor predecease you. Having these substitute layers ensures that there is an executor to implement the Will at the time of your demise and that the beneficiaries are awarded the assets as per your wishes.

5. Simple execution process

Another advantage is that the presence of a registered Will with the Courts makes the execution process much more straightforward. A lengthy probate process is avoided at the Courts, since there is no requirement to now establish the legal heirs to your Estate. In simple terms, having a Will in place shortens the time period to a great extent by which your beneficiaries receive your Estate. In contrast, not having a Will in place could bring in court appointed administrators for the execution of your Estate which can be a long-drawn process.

6. Multiple options to register your Will

Being an expat gives you the choice to register your Will either with the DIFC (Dubai International Financial Center), Dubai Courts or the ADJD (Abu Dhabi Judicial Department). All of the three mentioned options cover all your assets in the UAE. The next question that comes to your mind is then choosing between which option is the most suitable for you. This differs from case to case and it is imperative that you take independent legal advice before making your decision.

Please feel free to drop us a line at contact@chakralegal.ae as we have legal advisors who are qualified to give you legal advice in relation to your Estate.