The Importance of Early Probate Planning for Expatriates
Many expatriates overlook the importance of preparing a Will that is recognised under the appropriate UAE legal framework and understanding how their estate may be administered after death. Early planning can provide greater clarity over the distribution of assets, the appointment of executors and arrangements for minor children.
For expatriates living in the UAE, succession planning can involve an interaction between UAE law and the laws of other countries connected to the individual, their family or their assets. The position can become particularly complex where assets are held across multiple jurisdictions.
The Risks of Dying Without a Will
The UAE's legal framework governing succession for non-Muslims has developed significantly in recent years, including through federal legislation and separate civil personal-status provisions applicable in Abu Dhabi.
Where a person dies without a valid Will, the distribution of their estate will depend on the legal framework applicable to their circumstances and estate. Statutory inheritance rules may therefore determine who inherits and in what proportions, rather than the deceased person's individual wishes.
This can produce a different outcome from what the individual intended, particularly where there are children, business interests or assets held across several jurisdictions.
The absence of a Will can also create additional uncertainty during estate administration. Financial institutions and other asset holders may require appropriate succession or probate documentation before assets can be transferred or dealt with. Where minor children are involved, guardianship arrangements may also require consideration by the relevant court.
Preparing and registering an appropriate Will can provide greater certainty by clearly recording how an individual wishes their estate to be dealt with, subject to the applicable law and the requirements of the relevant jurisdiction.
DIFC and ADJD Wills
The DIFC Courts Wills Service and the Abu Dhabi Judicial Department (ADJD) provide established mechanisms through which eligible individuals can register Wills in the UAE.
The DIFC Courts Wills Service enables eligible non-Muslims to register a Will covering assets and, where applicable, guardianship provisions. Depending on the type of DIFC Will selected, a Will may cover assets across the UAE and may also extend to assets outside the UAE. Where foreign assets are included, advice should be obtained regarding recognition and enforcement in the relevant overseas jurisdiction.
The ADJD also provides a Civil Wills registration framework. Under the applicable Abu Dhabi legislation, individuals falling within the relevant framework can record how they wish their assets to be distributed.
A registered Will can also appoint an executor and may include provisions concerning guardianship, subject to the requirements and authority of the relevant courts.
Cross-Border Estates Require Additional Planning
Holding assets outside the UAE does not necessarily mean that a UAE Will cannot address them. However, including an overseas asset in a UAE Will does not by itself guarantee that the Will will be recognised or enforced in the country where that asset is situated.
The position can depend on several factors, including the type and location of the asset, the applicable succession and conflict-of-laws rules, and the recognition and enforcement requirements of the relevant foreign jurisdiction.
For expatriates with property, investments, businesses or financial accounts in more than one country, succession planning should therefore consider the estate as a whole rather than treating each asset in isolation.
At Estate Planning Partners, we advocate proactive succession and probate planning. Putting appropriate arrangements in place early can provide greater clarity for individuals and reduce uncertainty for their families when an estate eventually needs to be administered.
*This article provides general information only and does not constitute legal advice. Succession, probate, guardianship and the recognition of Wills can vary depending on individual circumstances and the jurisdictions involved. Independent legal advice should be obtained in relation to specific circumstances.*