For expatriates living in Dubai, estate planning is a critical but often overlooked aspect of financial and family security. The unique legal environment in the UAE, particularly for non-Muslims, can pose challenges when it comes to inheritance and the distribution of assets. The Dubai International Financial Centre (DIFC) Wills and Probate Registry offers a structured and legally sound mechanism for non-Muslim expats to register wills that are enforceable under common law principles. This article explores how DIFC wills work, who can benefit from them, and why they are essential for expats living in Dubai.
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Understanding the DIFC Wills and Probate Registry
Established in 2015, the DIFC Wills and Probate Registry was created to give non-Muslim expatriates a secure legal avenue to distribute their assets and appoint guardians for their children according to their wishes. Unlike the broader UAE Sharia-based legal system, the DIFC Registry operates under English common law, offering greater flexibility and legal certainty for expats.
The registry operates under the jurisdiction of the DIFC Courts and provides services that are distinct from the UAE’s federal legal system. It allows testators to bypass the default application of Sharia law on their estates, which would otherwise govern the distribution of assets for non-Muslim expats dying without a will.
Eligibility to Register a DIFC Will
To register a will with the DIFC Wills and Probate Registry, certain eligibility criteria must be met:
- The testator must be a non-Muslim.
- The testator must be over the age of 21.
- The assets covered in the will must be located in the UAE, although there are exceptions for global assets if structured properly.
It is essential for expats to confirm their non-Muslim status and have legal documents available for verification during the will registration process.
Types of DIFC Wills Available
The DIFC Wills and Probate Registry offers several types of wills to cater to the diverse needs of expats. Each type provides a different level of coverage:
Full Will
A Full Will allows the testator to cover all their assets in the UAE as well as appoint guardians for minor children. It offers comprehensive coverage for estate planning.
Property Will
This will is used to register up to five real estate properties in the UAE. It is ideal for expats who own property but may not have other significant assets in the country.
Business Owners Will
This type covers up to five shareholdings in free zone or UAE onshore companies. It is particularly useful for entrepreneurs and business owners operating in Dubai.
Financial Assets Will
A Financial Assets Will is suitable for those who want to protect their bank accounts, stocks, or other financial instruments held within the UAE.
Guardianship Will
This will type focuses solely on appointing permanent and temporary guardians for minor children. It ensures the well-being of children in case both parents pass away unexpectedly.
Steps to Register a DIFC Will
Registering a DIFC Will is a structured process that typically involves the following steps:
Legal Consultation
Expats should begin with a consultation with a registered legal practitioner experienced in DIFC wills. This helps in drafting a will that meets both personal needs and legal requirements.
Drafting the Will
The will must be drafted in accordance with the DIFC Wills and Probate Registry Rules. Legal experts use a standardized format to ensure that the will is valid and enforceable.
Online Booking and Submission
Once the will is prepared, an appointment can be booked online through the DIFC WPR portal. During the appointment, the will is reviewed and registered in the presence of a Wills Officer.
Video Conferencing Option
The registry also allows for remote will registration via video conferencing, making it accessible for expats who may be abroad or unable to travel.
Fee Payment
Registration fees vary depending on the type of will. For example, a Full Will registration costs approximately AED 10,000, while individual asset-specific wills may cost less.
Legal Validity and Enforcement
Once registered, a DIFC Will carries legal validity within the jurisdiction of the DIFC Courts. The courts have the authority to issue probate and enforce the will according to the testator’s instructions.
The DIFC Courts have established procedures and precedents that provide transparency and efficiency. Probate typically takes less time compared to the UAE’s Sharia courts, often concluding within weeks.
It is important to note that while DIFC Courts have jurisdiction over assets in Dubai and Ras Al Khaimah, testators must ensure proper structuring for assets located elsewhere in the UAE.
Benefits of DIFC Wills for Expats
Legal Clarity
DIFC Wills remove ambiguity around asset distribution, which is often a concern under Sharia law for non-Muslims. The will is executed as per the instructions of the testator.
Child Guardianship
One of the most significant advantages is the ability to appoint legal guardians for minor children, ensuring their safety and care according to the parents’ wishes.
Faster Probate Process
Compared to the traditional UAE court system, the DIFC probate process is significantly faster and less bureaucratic.
Confidentiality and Professionalism
The registration process is confidential and handled professionally, with the DIFC Wills Registry maintaining strict standards for document security and client confidentiality.
Global Recognition
Though primarily enforceable within Dubai and Ras Al Khaimah, DIFC Wills can be recognized internationally, especially in common law jurisdictions, provided appropriate legal frameworks are in place.
Common Misconceptions About DIFC Wills
Only for the Wealthy
Many expats assume that DIFC Wills are only necessary for high-net-worth individuals. However, anyone with assets or dependents in Dubai can benefit from registering a will.
Covers Only Real Estate
While many use DIFC Wills for property, they also cover bank accounts, investments, businesses, and child guardianship.
Registration Is Complicated
Though legal assistance is advisable, the DIFC has streamlined the registration process, making it accessible to the average expat.
Updating and Revoking a DIFC Will
Life circumstances change, and DIFC Wills can be updated or revoked as needed. Changes in marital status, the birth of children, or new asset acquisitions may necessitate updates. A new will can be registered to override a previous one, and legal practitioners can guide testators through the revocation or amendment process.
Conclusion
For non-Muslim expatriates in Dubai, the DIFC Wills and Probate Registry provides a reliable, legally sound option for estate planning and guardianship designation. It bridges the gap between local laws and the needs of a global expatriate population, offering peace of mind and legal protection. By understanding how DIFC Wills work and taking the necessary steps to register one, expats can ensure their wishes are honored and their loved ones are protected in the UAE. Whether you are a property owner, business professional, or a parent, a DIFC Will is a prudent and often essential step in safeguarding your future.
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