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Non-Muslim expat living in the UAE with valuable assets? Imagine the heartache & chaos your loved ones might face if those assets were frozen or distributed against your wishes. Fear not! Succession planning for non-Muslim expats with assets in the UAE, including DIFC Wills for Non-Muslims, has evolved significantly in recent years, providing more certainty & control over the distribution of these assets. One of the key tools for ensuring this certainty is the Dubai International Financial Centre (DIFC) Will. This allows non-Muslim expats to manage the succession of their UAE assets. This blog is going to cover it all:
The Importance of a DIFC Will
A DIFC Will provides non-Muslim expats with the assurance that their UAE assets will be distributed according to their wishes, avoiding the default application of local succession laws. This is particularly important for those who wish to provide for the guardianship of minor children residing in Dubai. DIFC Wills can include both temporary and permanent guardianship provisions.
Avoiding Local Statutory Succession Rules
Without a DIFC Will, the distribution of UAE assets for non-Muslim expats will follow statutory rules. For instance, if a non-Muslim expat dies intestate in Dubai, half of the estate would go to the spouse. The remaining half would be divided equally among the children. For Muslims, the assets would be distributed according to Shariah law, where specific proportions are allocated to family members.
What if you do not have a Will?
If a non-Muslim expat has assets in the UAE but does not have a valid will, the UAE courts may apply statutory succession rules, which could lead to unintended distribution of assets. For example, without a will, half of the estate may automatically go to the spouse. The rest to the children, which might not align with the individual’s wishes.
For Muslim expats, the absence of a will means that Shariah law will govern the distribution of their UAE assets. Under Shariah law, specific shares are allocated to relatives, which may not reflect the deceased’s personal preferences.
Making a DIFC Will
To create a DIFC Will, you must be a non-Muslim, over 21 years old, and the will must be signed according to DIFC requirements. It is important to note that you do not need to be a resident of Dubai to set up a DIFC Will, and your appointed executors or guardians do not need to be Dubai residents either.
While DIFC Wills for Non-Muslims are typically used for UAE assets, they can theoretically cover worldwide assets. However, it is advisable to seek legal advice in each jurisdiction where you hold assets to ensure the will is recognized and enforceable.
Recent Legislative Changes you should know!
On February 1, 2023, the UAE introduced a new federal law regulating personal status matters for non-Muslims. This law applies to both Emirati nationals and expats, and covers key areas such as marriage, divorce, child custody, and succession law. With this new legislation, Shariah law no longer applies by default to non-Muslim inheritance cases, providing a clearer legal framework for succession planning.
Under the new law,
If a non-Muslim passes away without a will, the estate distribution follows specific rules:
– Surviving spouse and children: Half to the spouse, the other half equally among the children.
– No children: Half to the spouse, the other half to the parents.
– Surviving spouse and one parent: Half to the spouse, the other half split between the parent and siblings.
– Only one parent, no spouse or siblings: The Entire estate to the surviving parent.
– No spouse, children, or parents: Entire estate to the siblings.
Conclusion
Succession planning is crucial for non-Muslim expats in the UAE to ensure their assets are distributed according to their wishes. DIFC Wills for Non-Muslims provide a reliable and efficient way to manage this process. For further assistance on succession planning and creating a DIFC Will, reach out to Dubai Law firms or reputable lawyers in Dubai.