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The concept of Trusts in Abu Dhabi, United Arab Emirates (UAE) is relatively new, only having been formally recognized and legislated for in 2018. Trusts differ from Wills in that they can be administered during the lifetime of the settlor, ensuring a smooth transition of assets to the beneficiaries. Trusts are seen as viable vehicles for asset protection, estate planning, and offering a high level of flexibility. They are governed by the respective rules and regulations stipulated by the concerned authorities in Abu Dhabi.
Trusts can be a complex area of law with numerous regulations and procedures that need to be followed meticulously. Lawyers with expertise in Trusts can be helpful in several situations. They can provide advice on the establishment of a trust, managing the trust's obligations and ensuring the settlor's objectives are met. Additionally, lawyers can also assist individuals in understanding their rights and obligations as beneficiaries. If any disputes occur over a trust, a lawyer will be instrumental in dispute resolution, ensuring a fair outcome for all parties involved.
In Abu Dhabi, Trusts Rules (2018) as part of the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) govern the formation, management, and operation of trusts. Trusts in Abu Dhabi can only be set up by a licensed trustee and are not subject to any mandatory legal restrictions. Previously, Abu Dhabi did not allow the formation of Trusts; however, the Rule was enacted to attract high-net-worth individuals by allowing trusts and protecting assets. All Trusts setups require a registered office in ADGM and must follow all its regulations.
A trust is a legal relationship where one person (the trustee) holds and manages assets for the benefit of another person or group (the beneficiaries).
Any person over 21 years of age with legal capacity can set up a trust. This includes individuals, corporations, and unincorporated associations.
A trustee is responsible for managing the trust assets according to the Trust deed and the provisions of the Trusts Rules (2018).
Trusts in Abu Dhabi are regulated by the Financial Services Regulatory Authority (FSRA) under the Abu Dhabi Global Market (ADGM).
Trust disputes are resolved through the ADGM Courts, which handle commercial and civil disputes.
A variety of trusts are permitted, like discretionary trusts, purpose trusts, protective trusts, and more. It's best to consult with a lawyer to determine the best type of trust for your situation.
Yes, one of the primary uses of trusts in Abu Dhabi is for estate planning. They allow for a smooth transition of assets, discretionary distribution, protection of assets from claims and taxes, and more.
A trust deed can be changed only if it includes provisions allowing for alterations; otherwise, changes may need court approval.
Currently, there is no specific tax legislation on trusts in Abu Dhabi, but changes in global tax principles can affect trusts.
Yes, assets located anywhere in the world can be placed in an ADGM-regulated trust.
There are several resources available for interested parties seeking to understand Trusts in Abu Dhabi, UAE. They include the official website of the Abu Dhabi Global Market (ADGM), the Financial Services Regulatory Authority (FSRA), publications and online resources on UAE's law, and reputable law firms specializing in Trusts and Estate Planning.
If you require legal assistance in Trusts, the first step would be finding an experienced Lawyer specializing in Trusts in Abu Dhabi, who can provide you with accurate and professional advice. They will guide you through the process, from the creation of the trust, managing the obligations, ensuring a smooth transition of assets to handling any possible dispute resolution.
