Your Essential Guide on UAE Inheritance Laws

Understanding inheritance laws in any country can feel like navigating a maze, and the UAE is no exception. Knowing how inheritance works here is crucial, whether you’re an expat living in the Emirates or a UAE national. This guide will break it all down for you in simple, friendly language, with practical tips and real-world examples. So, let’s get into it!

Why Inheritance Laws in the UAE Are a Big Deal

The UAE is home to millions of expatriates from all over the world. With a booming economy, many residents build their lives here, buy property, open bank accounts, run businesses, and raise families. But what happens to these assets if someone passes away?

That’s where inheritance law comes in. In the UAE, inheritance can be complicated due to the blend of Sharia (Islamic) and civil laws governing the process. For Muslim and non-Muslim residents alike, understanding your rights and options is vital to ensure your assets and loved ones are protected.

Dual Legal Framework for Inheritance

Inheritance in the UAE is primarily governed by:

• Sharia Law (for Muslims): Muslim residents and citizens of the UAE are subject to Islamic inheritance rules, which are strict and predetermined. These rules set fixed shares for specific heirs such as spouses, children, and parents. The goal is to ensure fairness, but they leave little room for personal discretion.
• Civil Law (for Non-Muslims): Recent legal reforms, particularly Federal Decree-Law No. 41 of 2022 on Civil Personal Status, give non-Muslim residents the option to apply the laws of their home country regarding inheritance. If no foreign law is specified, the UAE’s Civil Transactions Law may apply by default. This change offers non-Muslim expatriates greater control and flexibility over how their assets are distributed.

Inheritance Laws for Non-Muslims in the UAE

Inheritance for non-Muslims in the UAE is governed by Articles 11 and 12 of Federal Decree-Law No. 41 of 2022 concerning Civil Personal Status.

Key Provisions of Article 11(2): Intestate Succession (No Will)

If a non-Muslim passes away without a valid will, their estate will be distributed as follows:

1. If the deceased is survived by a spouse and children:

• 50% of the estate goes to the spouse.
• The remaining 50% is equally divided among the children, regardless of gender.

1. If there are no children, but both parents are alive:

• 50% goes to the spouse.
• The other 50% is equally divided between the mother and father of the deceased.

1. If only one parent is alive:

• 50% goes to the spouse.
• The remaining 50% is split into two equal parts:
  • One part goes to the surviving parent.
  • The other part is shared equally among the siblings of the deceased.

1. If there is only one parent and no spouse, children, or siblings:

• The entire estate is passed to the surviving parent.

1. If both parents are deceased and there is no spouse:

• The entire estate is distributed equally among the siblings.

Testamentary Freedom and Foreign Law Application

• Article 11(1): A non-Muslim may bequeath 100% of their UAE-based assets to any person of their choice through a registered will.
• Article 11(3) and Article 17(1) of the Civil Transactions Law:
  • Heirs of a foreign deceased person may request that the laws of the deceased’s home country govern the inheritance, unless a UAE-registered will specifies otherwise.
• If a foreign national dies without legal heirs, their assets within the UAE will be transferred to the government, as per the Civil Transactions Law.

Procedural Regulations

The exact process for inheritance is subject to a Cabinet-issued decision, as outlined in Article 12.

Inheritance Laws for Muslims in the UAE

Inheritance for Muslims is regulated under Sharia law, which includes more than 40 detailed articles. Key considerations include:

1. Debt and Funeral Expenses:
   Distribution of the estate takes place only after settling funeral costs and outstanding debts of the deceased.
2. Presence of a Will (Wasiyyah):

• A Muslim may only bequeath up to one-third of their estate through a will.
• The remainder is distributed strictly according to Sharia principles.
• There are restrictions on who may benefit from the will.

1. No Will:

• The entire estate is divided in accordance with Islamic inheritance rules.

1. Eligibility to Inherit:

• Heirs must be confirmed by two male witnesses and supporting documentation.
• A non-Muslim cannot inherit from a Muslim.
• Anyone who intentionally causes the death of the deceased to benefit from the inheritance is disqualified from receiving a share.

Key Things to Cover in Your Will

Creating a will is more than just listing who gets what. Here are important elements to include:

1. Executors – Who will carry out your wishes?
2. Guardianship – Who will care for your children if both parents are gone?
3. Asset List – Properties, bank accounts, cars, business shares.
4. Debts and Liabilities – These need to be settled before distribution.
5. Specific Gifts – Jewelry, family heirlooms, personal belongings.
6. Residue Clause – Who gets what’s left after specific gifts and debts are handled?

Common Challenges in Inheritance Cases

While the procedures might seem straightforward, inheritance cases in the UAE often encounter obstacles, such as:

• Lack of a Will
  Without a formal will, the division of assets may not reflect the deceased’s actual wishes. In such cases, the default legal system applies, which may be rigid or unfamiliar to some families.
• Complicated Family Structures
  In families with multiple marriages, stepchildren, or estranged relatives, determining rightful heirs can become legally and emotionally complex.
• Cross-border Issues
  When heirs or assets are located in different countries, international legal cooperation is often required, leading to delays and complications.
• Legal and Bureaucratic Procedures
  The legal process can be daunting, especially for those unfamiliar with UAE law. Language barriers, administrative requirements, and differing interpretations of documents may hinder progress.

Conclusion

Let’s face it, no one likes thinking about death or legal stuff. But a little planning now can save your family from big problems later. Whether you’re a longtime UAE resident or just getting started here, don’t put off creating a will. Talk to a lawyer, choose the right jurisdiction, and make your wishes known. For more information, contact us now.