Are you a non-Muslim expat living in Dubai or have assets in this region? You must have wondered what would happen to your property and investments if the unexpected occurs.
Under Sharia law that governs inheritance in the UAE for Muslims, strict rules must be followed to determine how assets are divided among family members. For example, sons inherit twice as much as daughters. As for the guardianship of children, if both parents pass away, the guardianship of children is granted to the closest male relative, regardless of the parent's wishes.
Here, DIFC Wills lets expats, the non-residents of the UAE, bypass these Sharia rules and gain more control over their assets and guardianship. But what is DIFC Will? We shall look more into it. This is important if you are an individual with a home and savings or a business owner looking to safeguard your company and understanding how a DIFC Will works to protect your assets.
What is DIFC Will?
While Wills in Dubai translate all documents into Arabic and accept wills from Muslim and non-Muslim residents, DIFC Will is different.
A DIFC Will is a legal document registered that is a part of the Dubai International Financial Centre's (DIFC) courts. It allows non-Muslim expats to manage the distribution of their assets and the guardianship of their children in Dubai and Ras Al Khaimah according to their personal wishes.
The DIFC Will usually works like wills that you find in common-law countries such as the US, UK and Australia. This means it gives expats a lot more freedom to decide how their assets are shared out after they are gone. Also, it lets them choose who looks after their minor kids.
To register a Will at DIFC, the concerned person must be a non-Muslim, aged at least 21 years of age and have movable or immovable property located in the UAE.
Difference between DIFC Wills and Sharia-Based Wills in the UAE
DIFC Wills
These wills are governed by the DIFC Wills Service Centre and operate under common law that's similar to Western legal systems. Expats get the flexibility to distribute their assets according to their wishes, outside the scope of Islamic inheritance laws.
Sharia-based Wills
These wills are governed by Sharia Law and it applies to all wills handled by the UAE courts. Islamic inheritance laws will be followed and this is regardless of the deceased's nationality or religion unless specific provisions are in place.
Types of DIFC Wills
DIFC wills for non-Muslim expats come in five main types, such as:
Property will
The property Will only include real estate property that's located in the UAE that you own personally and specifically list in the will. But if you buy a property post-register DIFC will, you must modify your existing Will by signing and registering a new property will. So, this way you ensure you cover all your intended property.
So, this type of Will is ideal if your real estate holdings are the biggest asset you want to sort out.
Note: If you own five real estate properties, or if you wish to pass on any other type of asset owned by you, you must consider registering for DIFC courts full will.
Guardianship will
Get appointed as guardians for minor children. DIFC Wills lets parents appoint legal guardians for their minor children. This is a big perk because, as per Sharia Law, guardianship decisions may be made in ways that differ from the parent's preference. With a DIFC Will, you can make sure you choose guardians for your children of your choice.
To ensure you choose appointed guardians who are in compliance with UAE public policy and DIFC regulations, get professional assistance.
Financial assets will
DIFC Courts financial assets are designed to handle all your cash, savings or investments in Dubai or Ras Al Khaimah.
What accounts can be included?
You can list up to 10 bank or brokerage accounts in a financial assets will. But the accounts must be either solely in your name or jointly with someone else. Yet, these accounts must be helped in the UAE at a bank or brokerage firm.
What kind of assets are included?
The bank accounts must contain only movable assets, which means things like cash, publicly traded stocks or securities that include government bonds or shares. And you must have full ownership of the money or securities in these accounts. Only then can these assets be added to the will.
Note: If you own more than 10 accounts, or if you have other types of assets that you want to protect, you must opt for a DIFC Full Will. This covers more types of assets and has no limit on the number of accounts.
Full will
This Will let you cover your movable and immovable assets (property, bank accounts, investments, jewelry, vehicles, etc.) and guardianship of your children residing in the UAE or Ras Al Khaimah, whether or not it's mentioned in the Will at the time of registration. It can even cover your assets outside the UAE. But there's no guarantee that it Will be enforceable in other countries.
Yet, it's best to get legal advice to see if this DIFC Will work for your assets outside the UAE.
Business Owners WILL
As for this type of will, it lets the person registering for the Will to cover up to 5 separate shareholdings that they may own in any free zone and onshore company in the UAE and established in accordance with UAE Federal Law.
If you acquire more shareholding after creating the business owners will, you must update it by registering a new business owner's will.
However, if you have more than five shareholdings or want to include other types of assets (like property or bank accounts), you have to go for a DIFC Courts full Will instead.
Who needs a DIFC Will?
A DIFC Will is ideal for the following people, such as:
- Non-Muslim expats who are not subject to Sharia Law and want to avoid Islamic inheritance rules.
- Expats or non-residents of the UAE who have assets in Dubai or Ras Al Khaimah and want to control how these assets are divided.
- Expats who have minor children living in Dubai or Ras Al Khaimah and want to appoint legal guardians in case something happens to them.
- Non-Muslim expats with business interests or shares in Dubai or Ras Al Khaimah who want to specify what happens to their businesses after their death.
- If you want to leave your assets to specific individuals rather than Sharia Law's strict guidelines, a DIFC Will offer that flexibility.
Benefits of DIFC Wills
1. Freedom of asset distribution
DIFC Wills gives you full freedom to distribute your assets according to your wishes. So, you can leave your estate to anyone of your wish without the constraints of Sharia Law, which usually enforces specific inheritance rules.
2. Non-Muslim expats can avoid Sharia law
If you don't have a DIFC will, your assets might get divided as per the Sharia law. But with a DIFC Will, you can bypass all that and make sure your wishes are actually followed.
3. Business owners can decide on their inheritance
Unlike the Sharia-based inheritance process, non-Muslim expats who own businesses can now safeguard their business interests. They can decide who Will inherit their shares or stakes.
4. Efficient probate process
Since the DIFC Wills Service Center operates a Western-style probate system, it's faster and more efficient than the Sharia Court process. This means you avoid lengthy delays in the distribution of assets and makes it easier for your loved ones to manage your estate.
5. Legal certainty and security
DIFC Wills are legally recognized under the DIFC Wills and Probate Registry. So, there's no surprises or loopholes. It's all clearly documented and locked in under Dubai's legal system.
6. Expert guidance and support
The DIFC Wills Service Center offers expert guidance throughout the entire process of drafting and registering your will. So, you won't have to deal with any hassle and get professional support from experts.
7. Protection against invalid wills
DIFC Wills get rigorously reviewed at the official DIFC Wills Service Center. This guarantees that your Will is valid and enforceable. Plus, this cuts down the chances of your Will being challenged or declared invalid.
8. Get flexibility on updating information
Another benefit of having your Will registered with the DIFC court is that they make it quick to update your information.
For instance, when you create your will, the service center collects identification details and contact information for everyone you name in the will. When the executor can't find anyone listed in the Will during the probate process, the service center can provide that contact info to help speed things up. Likewise, you can change personal details such as residential addresses and passport numbers without any extra charges.
How do I register a DIFC will?
DIFC Will registration is a quick and straight-forward process. It is designed to ensure your wealth and guardianship are legally recognized.
Follow the given steps for DIFC registration:
1. First decide on the type of will. DIFC offers a variety of wills to suit your needs, including full wills, guaranteed Wills and property wills. Choose the Will that aligns with your requirements.
2. Get in touch with a registered DIFC Wills draftsman. Consult with a registered DIFC Wills draftsman who can draft and finalize your Will based on your wishes. Here, ensure your Will clearly outlines how you want your assets to be distributed and who should be appointed as guardians for your kids.
3. You need two adult witnesses who are neither beneficiaries nor heirs mentioned in the will. They must sign the document.
4. Once your Will is made ready and witnessed, register it at the DIFC wills and probate registry.
5. Next, pay the required registration fees that can differ based on the type of DIFC you choose.
Obtaining a probate certificate from the DIFC Courts guarantees that your DIFC Will gets processed smoothly and your wishes are legally upheld. Additionally, this certificate ensures the execution of your instructions according to your specifications.
Final Words
DIFC Wills lets non-Muslim expats and business owners in Dubai and Ras Al Khaimah secure their assets and make certain their loved ones are taken care of according to their wishes. We hope that you are well informed about the UAE Wills. If you want to register for one and are looking for Will drafting services, feel free to visit our website to get more details on this.