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Estate planning in Dubai, United Arab Emirates (UAE) can be complex due to the existence of both federal and emirate-specific laws. It primarily focuses on how an individual’s estate (assets, investments, property etc.) will be managed and distributed after their death. Estate planning might also include directives for personal care if the person becomes incapacitated. In the absence of a legally binding will, the local courts may distribute a deceased person’s estate in accordance with Sharia law, which might not align with the deceased's wishes.
Navigating the estate planning process in the UAE can be challenging without professional legal assistance. A lawyer can help you in creating a comprehensive estate plan that covers all your assets. They can help you understand the impact of the UAE's laws, as well as the potential tax implications of the different elements of your estate. Estate lawyers can also assist in the execution of the will following a death, ensuring that your wishes are accurately carried out.
In Dubai, both in the onshore UAE jurisdiction and the offshore jurisdictions of the Dubai International Financial Centre (DIFC), there exist specific laws that impact estate planning. In absence of a legally validated will, UAE courts tend to distribute assets according to Sharia law. Sharia law places limitations on how assets are distributed upon death, with a preference for distribution among male relatives. The DIFC Wills and Probate Registry, though, offers non-Muslim residents an opt-out of Sharia law in a legally binding manner, allowing them to distribute their Dubai-based assets as per their own wishes.
Yes, non-residents can own property in Dubai, both freehold and leasehold, and can bequeath it through a will. However, legal counsel is recommended to navigate estate planning for such properties.
Currently, there are no direct inheritance or estate taxes in Dubai. However, there can be other financial implications, such as potential property transfer fees upon the executor's appointment.
While Dubai courts do recognize foreign wills, they can be contested and may not be treated as strongly as a locally-registered will. Thus having a Dubai-registered will is advisable.
If a non-Muslim resident dies without a will, the UAE courts may distribute the assets according to Sharia law. This can lead to an unexpected and undesired allocation of the estate.
Under Sharia law, it is generally challenging to disinherit a family member, particularly if they are a male relative. However, a legal counsel can advise non-Muslim residents on bypassing this through various legal avenues.
For further information or assistance with Estate planning, you can refer to bodies like The UAE Ministry of Justice, The Dubai Courts, and The Dubai International Financial Centre Wills Service Centre.
If you require legal assistance in estate planning, the recommended next step is to consult with an attorney experienced in this area. They can guide you in creating a will and other documents to ensure your assets are distributed according to your wishes, offering peace of mind for you and your family.
