There has been a major review of the UAE laws relating to personal and civil laws. I have summarized below the most relevant points relating to inheritance and Wills in the UAE.

What are the changes to inheritance in the UAE?

Previously, all assets in the UAE, for expats and Emiratis without a DIFC Will have been governed by Sharia Law, which is the law of the UAE but the new laws announced on the 7th November 2020 are changing this. In the future, expats will be able to have the inheritance rules of their home country applied instead and this applies to non-Muslims and Muslims alike. This is a significant change. However there is one major exception, not covered by the new laws, is the ownership of property. All property in the UAE will still be subject to distribution under Sharia law unless a Will is in place. At present only non- Muslims are permitted to write full common law Wills under DIFC Rules. What is meant by home country inheritance rules?

The information so far refers to the individual’s country of citizenship, so basically the passport an expat holds. There are cases where people have more than one passport and while there has been no confirmation on this point,it is most likely that the passport used for the UAE residency visa is the one that would be considered.

Are DIFC Wills still required?

I would absolutely say that without a doubt this is essential. Guardianship. One of the main reasons people require a DIFC Will is to specify permanent guardians for their children should both parents die. Without a valid Will in place, a decision will be made by a court that may not be in line with your wishes. This could result in your children going into government care.

Home country Wills. The new legislation only relates to assets that you hold in the UAE and if you have assets elsewhere, it is advisable to make a Will to ensure that these are distributed as you wish according to your specifications.

Forced Heirship Regime Typically most country’s inheritance laws apply for the standard distribution of assets to spouse and then children which in the majority of cases is preferred. However many European countries (for example Switzerland and France ) have an inheritance system referred to as forced heirship. This is when the distribution of assets when you pass away is determined by the law of your home country and cannot be superseded or changed despite what an individual desires. In this case your home country law certainly may not be what you wanted. This is definitely something to consider when debating the value of a DIFC Will. .

Clarity of instructions for probate At present on death UAE bank accounts are frozen and cannot be accessed (even if held in joint names ) until the deceased’s assets are divided and distributed . This can take months or even in some cases years. Having a Will in place will makes sure that the rules of probate are correctly followed and that assets are properly and quickly distributed.

Soma Gardi is the founding partner of SG Legal Consultants FZC, a specialised niche firm providing a bespoke service for clients requiring a DIFC Will. Please contact soma@sglegalconsultants.com for any further information.