Following the entry into force of Decree-Law 41/2022, non-Muslim expatriates in the United Arab Emirates are facing new succession rules. Here is how this may affect your estate.
Decree-Law 41/2022 has significantly changed succession rules in the United Arab Emirates for non-Muslims. Sharia law is no longer automatically applicable, but specific provisions now apply.
Implications of Decree-Law 41/2022 for expatriates
The United Arab Emirates is known for its dynamic economy and cultural diversity. However, because of this diversity, the country has had to address legal challenges concerning succession for non-Muslims. Until recently, Sharia law applied to the real estate and assets of non-Muslims upon death, which could sometimes lead to complications and disagreements.
With the entry into force of Decree-Law 41/2022, these rules have been significantly amended. Non-Muslims still have the option of registering a will to bequeath their assets located in the United Arab Emirates to beneficiaries of their choice. However, real estate is excluded and remains governed by United Arab Emirates law.
Non-Muslims now have the option of registering a will to bequeath their assets located in the United Arab Emirates to beneficiaries of their choice. This measure offers greater flexibility and helps ensure that the deceased's wishes are respected.
Registering a will in Dubai
Registering a will in Dubai has become an essential step for non-Muslims who wish to control the distribution of their estate after their death. It is important to understand that, despite the new rules, real estate remains governed by United Arab Emirates law pursuant to Article 17.5 of the Civil Transactions Law.
In the event of death, the competent court will probate the registered will, thereby ensuring that the deceased's wishes are carried out.
Absence of a will
In the absence of a will, the competent court in the relevant geographical area will cease applying Sharia law, which remains applicable only to Muslims. Instead, it will implement the rules set out in Law 41/2022. These provide for the deceased's estate to be divided into two separate shares, depending on the specific circumstances:
- The deceased leaves a spouse and children:
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- 50% of the estate is allotted to the surviving spouse and
- 50% goes to the children in equal shares, without distinction between daughters and sons.
- The deceased leaves a spouse but no children:
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- 50% of the estate is allotted to the surviving spouse and
- 50% goes to the deceased's parents (mother and father) in equal shares.
- The deceased leaves a spouse and only one parent, with no children:
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- 50% of the estate is allotted to the surviving spouse and
- 25% goes to the surviving parent
- 25% is allotted to the deceased's siblings in equal shares
- If the deceased has no spouse, children, or siblings, and has only one surviving parent, the entire estate is allotted to that parent.
- If the deceased has no spouse, children, or surviving parents, the estate is divided equally among the deceased's siblings, without distinction based on sex.
It is important to note that it remains possible to apply to the court to administer the deceased's estate in accordance with their national law. However, this process requires providing the court with the relevant legal texts, translated into Arabic and certified by the Ministry of Foreign Affairs. In practice, this option is often difficult to pursue.
The two main jurisdictions in the United Arab Emirates
If you prefer to avoid having the new rules introduced by Decree-Law 41/22 apply automatically to your estate in the United Arab Emirates, it is strongly recommended that you register a will. To register a will in Dubai, there are essentially two main jurisdictions to consider: the DIFC Wills and Probate Registry and the Abu Dhabi Judicial Department (ADJD).
It is also possible to appoint guardians to care for minor children in the event of the parents' death in wills registered with the DIFC and the ADJD.
DIFC Wills and probate registry
The DIFC Wills and Probate Registry is a common-law jurisdiction reserved exclusively for non-Muslims. Wills registered with the DIFC may cover movable and immovable property located in the United Arab Emirates or anywhere in the world. The applicable law is DIFC law (common law).
Abu Dhabi Judicial Department (ADJD)
The Abu Dhabi Judicial Department (ADJD) is currently the only Emirate to have established a will registry for non-Muslims.
Wills registered with the ADJD may cover all assets, whether movable or real estate, located anywhere in the United Arab Emirates. The applicable law remains the law of the United Arab Emirates.
An important development is that the ADJD now accepts wills from Muslims who hold a passport from a non-Muslim country. This considerably expands the options available to many residents of the United Arab Emirates, particularly French Muslims.
The new succession rules in the United Arab Emirates require non-Muslims to take steps to protect their assets. Registering a will in Dubai has become a crucial step in ensuring that your assets are transferred in accordance with your wishes.
Whether you choose the DIFC Wills and Probate Registry or the Abu Dhabi Judicial Department, it is essential to understand the legal implications and consult legal experts to guide you through this process. The firm
Merritt Legal Consultant answers all your questions regarding wills and succession.
For more information and personalized assistance with registering a will in Dubai, please do not hesitate to contact:
Josephine D’Angelo
MERRITT LEGAL CONSULTANTS
E.mail: josephinedangelo@merritt-legal.com
Mobile: + 971 56 953 7401
Website: www.merritt-legal.com
