December 15, 2023 Wills 101: Why Crafting a Will Should Top Your Priority List Share As a non-Muslim, if you’ve got assets in the UAE, it’s smart to get yourself a registered non-Muslim Will (like in DIFC, UAE, or Abu Dhabi). The existence of a Will ensures your assets go where you want them to. Without a legit Will, if you kick the bucket, the local Courts will divvy up your assets, applying principles of Islamic Sharia accompanied by pre-determined rules of distribution. But let’s be real: the Court’s choices might be far from how you wanted your assets to be dealt with. So, better play it safe and get that Will sorted. So far, everyone in the UAE, whether Muslim or not, has been following the same rules when it comes to inheriting assets. But, get this, things have changed. The government is shaking things up to ensure all residents, regardless of religion, get a fair deal. This article predominantly focuses on the scope of Law No. (15) of 2017 Concerning Administration of Estates and Implementation of Wills of Non-Muslims in the Emirate of Dubai that extends to all Wills and Estates of non-Muslims in the Emirate, including in the Dubai International Financial Centre. Consequences of not having a will Effects on bank accounts All that money is frozen, regardless of whether the deceased has a single or joint bank account. It’s like hitting pause until the court decides what to do with the deceased person’s assets. This isn’t just a whim – it’s laid out in Article 379(4) of the Federal Law No. 18 of 1993 (UAE Civil Code). So, those bank accounts are on lockdown until the court gives the green light to appoint a successor. Excerpt as under: “If a joint account holder dies or loses legal competence, the others must duly notify the bank within a maximum of ten days from the date of the death or loss of competence. The bank must suspend withdrawals from the joint account from the date of its being advised until a successor is appointed.” Distribution of assets The absence of a will means that the default rules automatically apply to asset distribution. If a non-muslim passes away in the UAE without a specified will, their spouse is in for an automatic 50% share of the assets. The remaining 50% is then earmarked for any children in the picture. That’s how the distribution plays out by default. Guardianship If you don’t have a registered will in the UAE, the determination of guardianship follows Sharia law. In this context, should the father pass away, the default appointment of a guardian leans towards the next male relative of the deceased father. This occurs irrespective of the presence of the natural mother of the children. Sharia law takes precedence in shaping the default guardianship arrangements. These are just a few examples of the consequences of not having a will; the personal status, inheritance and administration of estates law and the civil code lay out the exact implications of not having a will as a non-muslim. How can you avoid the adverse implications of not having a will? The Dubai Courts have recently introduced a groundbreaking initiative by establishing the first inheritance department dedicated to non-Muslims residing in the emirates. This progressive move signifies a commitment to fostering cultural diversity and providing comprehensive services to residents of different faiths. The newly established department allows non-Muslims to prepare and execute their wills in accordance with their own legal systems, offering a clear legislative framework to ensure the effective implementation of their preferences in matters of inheritance. Practical application: To initiate an inheritance file in Dubai Courts, applicants must submit various documents based on their specific circumstances. The department operates under a single-session system, aiming to reach a decision on the request ASAP. There are different instances that may require submission of different sets of documents; The documents include a legal notice, an inventory of inheritance, an heirship certificate and a legal document setting out each heir’s shares and/or An official document that proves the existence of a will, whether issued by Dubai Courts or any other courts within the UAE, excluding the Dubai International Financial Centre courts; and/or If none of the above documents are available, a judicial ruling proving the death of the deceased and identifying the heirs is required. If the ruling is issued outside the UAE, it must be attested by the UAE Embassy – Ministry of Foreign Affairs and/or The fourth case involves executing a will not issued by the courts within the UAE, wherein the provisions of Article 18 of Law No. 15 of 2017 are applied, i.e., as under “A Will will be implemented pursuant to: 1. a written order issued by the Competent Court, where the Will is registered on the Register; or a judgment issued by the Competent Court based on a written application by the beneficiary of the Will or his guardian in accordance with the procedures for instituting legal proceedings, where the Will is not registered on the Register.” This initiative aligns with Dubai’s commitment to honouring cultural diversity and strengthens the overall service framework by providing a comprehensive and advanced system for managing inheritance affairs. It reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as outlined in Law No. 15 of 2017. Law No. 15 of 2017 applies to all wills and probate matters concerning non-Muslims in Dubai, including the Dubai International Financial Centre. This comprehensive Law empowers non-Muslims to prepare their wills within a clear legislative framework, ensuring the application of their personal laws and enhancing litigation procedures related to wills and probate matters. The establishment of the non-Muslim inheritance department underscores Dubai Courts’ dedication to facilitating and expediting procedures for individuals from diverse backgrounds. Requirements for registering a will in the Register As per Article 8 of Law No. (15) of 2017 Concerning Administration of Estates and Implementation of Wills of Non-Muslims in the Emirate of Dubai “Registering a Will on the Register will be subject to the following conditions: The testator must be non-Muslim. The Will must satisfy the Will validity conditions stipulated herein. The Will must nominate an Executor and must state how the willed property will be disposed of. The testator must have signed the Will or affixed his seal or fingerprint to it, in the presence of two (2) witnesses. The text of the Will must not have been altered by deleting or erasing any part thereof, or by adding or inserting new text. All the fees prescribed by the legislation in force in the Emirate must have been paid.” How will it be implemented? As per Article 18 of Law No. (15) of 2017 Concerning Administration of Estates and Implementation of Wills of Non-Muslims in the Emirate of Dubai; “A Will will be implemented pursuant to: a written order issued by the Competent Court, where the Will is registered on the Register; or a judgment issued by the Competent Court based on a written application by the beneficiary of the Will or his guardian in accordance with the procedures for instituting legal proceedings, where the Will is not registered on the Register.” What if I don’t have any heirs? Article 28 of Law No. (15) of 2017 Concerning Administration of Estates and Implementation of Wills of Non-Muslims in the Emirate of Dubai, states that, in the absence of heirs, the estate and assets shall devolve to the public treasury of the government of Dubai, subject to the application of international treaties and conventions. To wrap up, it’s pretty wild to think about, but having a legitimate will is seriously important to consider. I mean, we’re all out here hustling, living our lives, but having a solid plan for what happens to your assets when you’re not around is crucial. It’s not just about money either – it’s about making sure your family doesn’t get stuck dealing with a mess when they’re already going through a tough time. Getting your act together with a will is like giving yourself and your loved ones a peace of mind pass. It’s your chance to set the record straight on who gets what and prevent any drama down the line. So, while it might feel like adulting on a whole new level, creating a will is a smart move that shows you have your future (and theirs) in mind. Published by Erum Sheikh A 2020 graduate of Mumbai University, Erum joined RAALC demonstrating excellent experience with corporate and commercial transactions. She works closely with our clients and regularly provides advisory and legal opinions on construction, commercial transactions, corporate operations, bankruptcy and restructuring and amicable settlements for debt recovery. She has a knack for writing and excels at drafting contracts, agreements, due diligence reports, legal notices and claims.
