How can expats ensure proper distribution of their assets in the United Arab Emirates after their demise?

 Expatriates residing in the United Arab Emirates (U.A.E) often face unique challenges when it comes to safeguarding their money and property. As foreigners in a foreign land, expatriates must take proactive steps to protect their assets and ensure their proper distribution after their demise. This essay will discuss some key strategies that expatriates can employ to safeguard their money and property in the U.A.E.

 Legal Measures: First and foremost, expatriates should familiarize themselves with the local laws and regulations regarding property ownership and inheritance in the U.A.E. It is essential to understand the legal framework and procedures to make informed decisions about asset protection and distribution. Seeking legal advice from professionals specializing in international estate planning can be immensely helpful in navigating the complexities of the U.A.E legal system.

 Will and Estate Planning: Another important step is to establish a will that clearly outlines the distribution of assets upon death. Drafting a Will under UAE law is crucial. This document specifies your inheritance wishes, avoiding confusion and potential legal disputes. Choose Arabic and English translations for clarity. This will ensure that the expatriate's wishes are respected and that their property is distributed according to their desires. It is advisable to work with a lawyer who is well-versed in international estate planning to ensure that the will is legally binding and enforceable in both the U.A.E and the expatriate's home country.

 Appoint Executors: Select trustworthy individuals to oversee the estate execution process, managing assets, debts, and inheritance distribution.

Power of Attorney: Consider granting someone legal authority to manage your affairs in case of incapacitation, preventing delays and complications.

Financial Protection:

 Joint Bank Accounts: Adding a trusted individual as a joint account holder provides immediate access to funds for expenses and emergencies after your death.

Life Insurance: Securing life insurance with designated beneficiaries grants financial security to your loved ones upon your passing.

Investment Review: Update your investment portfolio with an advisor, ensuring beneficiary designations are current and align with your estate plan.

 In addition to a will, expatriates should consider setting up a trust to protect their assets. A trust can provide added security and flexibility in managing and distributing wealth. By transferring assets to a trust, expatriates can ensure that their money and property are held and managed by a trusted individual or entity, known as a trustee, who will carry out their wishes after their demise.

 Furthermore, expatriates should review and update their financial and legal documents regularly. This includes bank accounts, insurance policies, and property titles. By keeping these documents up to date, expatriates can avoid potential complications and ensure that their assets are properly accounted for and protected.

 Lastly, expatriates must communicate their wishes and plans with their loved ones. Open and honest conversations about financial matters and estate planning can help avoid misunderstandings and conflicts in the future. By involving family members and beneficiaries in the decision-making process, expatriates can ensure that their wishes are understood and respected.

 Investment Review: Update your investment portfolio with an advisor, ensuring beneficiary designations are current and align with your estate plan.

Property Considerations:

 Deeds and Ownership Records: Keep ownership documents for properties readily accessible. Consider joint ownership with beneficiaries for easier transfer.

Mortgages and Debts: Clearly document outstanding loans or mortgages on properties to avoid confusion and delays in settling accounts.

Tenancy Agreements: If renting, inform the landlord and update tenancy agreements with details of beneficiaries who will assume the lease.

Additional Tips:

 Register with your embassy: Registering with your home country's embassy in the UAE allows them to assist your family in case of death.

Organize Records: Maintain copies of essential documents like Wills, passports, financial statements, and property deeds in a secure location accessible to your executors.

Regular Review: Update your estate plan and financial arrangements as your circumstances evolve, such as marriage, birth of children, or property acquisitions.

Seeking Professional Help:

Consult with qualified legal and financial professionals in the U.A.E. They can offer personalized guidance tailored to your specific circumstances and residency status.

 Important Note: This information is intended for general guidance only and should not be considered legal or financial advice. Please seek professional assistance for tailored recommendations based on your unique situation. By taking these proactive steps, you can safeguard your assets and ensure your loved ones are protected and cared for after your demise in the U.A.E.

Major Shake-ups of Family Law in the U.A.E in 2023

 The U.A.E. has undergone a significant overhaul of its family law in recent years. This has resulted in substantial changes to various aspects, including: 

1. Civil Family Court System in the U.A.E.

The Civil Family Court System is a crucial element of the recent family law shake-up in the U.A.E. Here's a breakdown of its key features and significance: 

Background: Introduced in November 2021 in Abu Dhabi and rolled out across the nation in February 2023.Emerged as a response to the growing expat population and their need for a family law system aligned with their home countries.

Key Features: 

·       Non-Sharia legal framework: Offers a civil alternative to the traditional Sharia-based system.

·       Jurisdiction: Handles cases like marriage, divorce, child custody, inheritance, and maintenance for non-Muslims.

·       Familiar legal principles: Applies legal concepts similar to those found in many Western legal systems, making it easier for expats to understand and navigate.

·       Choice of law: Allows couples to choose the law of their home country to govern their marriage and divorce, enhancing legal certainty and predictability.

Benefits for Expats: 

·       Greater autonomy: Provides expats more control over their family matters through a legal system they are familiar with.

·       Equality and fairness: Offers a more equitable system for both spouses, especially in divorce and asset division.

·       Improved predictability: Enables expats to better anticipate legal outcomes and plan for their family's future.

·       Enhanced legal security: Offers greater confidence in the legal system, promoting stability and peace of mind.

Impact on U.A.E.: 

·       Attracting and retaining talent: The civil family court system makes the U.A.E. a more attractive destination for expats, contributing to its economic growth and global competitiveness.

·       Modernizing legal framework: Aligns the U.A.E.'s family law with international legal standards, enhancing its reputation as a progressive and modern nation.

·       Promoting inclusivity: Creates a more inclusive legal environment that caters to the diverse needs of its residents.

·       Provides an alternative system more familiar to expats, aligning better with their home

2: Inheritance Law in the U.A.E.: A Comprehensive Overview

Inheritance law in the U.A.E. has undergone significant changes in recent years, particularly regarding non-Muslims. Here's a comprehensive overview:

Previous System: Sharia principles governed inheritance for all residents, regardless of religion.

This led to unequal distribution for non-Muslims, with male relatives receiving larger shares.

Uncertainty and ambiguity remained due to variations in interpretation and application of Sharia law.

New System:

Introduced in February 2023, it applies to all deceased individuals who passed away after that date.

The citizenship of the deceased determines the applicable inheritance law.

This means non-Muslims can now have their assets distributed according to their home country's inheritance laws, ensuring fairness and consistency.

Key Features:

·       Choice of law: Non-Muslims can choose the law of their home country to govern their inheritance, either explicitly through a will or implicitly based on their citizenship.

·       Equality: Share distribution is equal among children, regardless of gender, reflecting a more equitable approach.

·       Transparency and predictability: The new system provides greater clarity and predictability for non-Muslims regarding their inheritance rights.

·       Improved legal security: Foreign inheritance laws are recognized and enforced, enhancing legal security and confidence for non-Muslim families.

Wills:

·       Non-Muslims can now draft wills to specify their preferred asset distribution.

·       Wills must be drafted in accordance with the law chosen by the deceased.

·       If no will exists, the inheritance will be distributed according to the applicable national laws.

Benefits for Expats:

·       Greater control: Expats can now determine how their assets will be distributed after their death.

·       Peace of mind: The new system offers greater certainty and reduces stress for families during a difficult time.

·       Improved legal standing: Expats have more legal protection and security regarding their inheritance rights.

Impact on U.A.E.:

·       Enhanced competitiveness: The updated inheritance system strengthens the U.A.E.'s appeal as a destination for foreign investment and talent.

·       Promoting inclusivity: The new law fosters a more inclusive environment by respecting the diverse legal needs of its residents.

·       Modernization: Aligns the U.A.E.'s inheritance law with international standards, reinforcing its image as a progressive and modern nation.

·       Previously governed by Sharia principles, leading to unequal distribution for expats.

·       New laws dictate that the deceased's citizenship determines asset division, applying their home country's inheritance law.

·       Ensures a fairer and more consistent process for expats.

3. Divorce in the U.A.E.: A Guide for Expats

The U.A.E. has seen significant changes to its divorce laws, especially for expats, offering greater flexibility and fairness. Here's an overview of the key changes: 

Pre-2023 System: 

·       Divorce is based on Sharia principles, favoring the husband in most cases.

·       Limited options for non-Muslims, often requiring conversion to Islam to obtain a divorce.

·       Complex and time-consuming legal procedures.

New System (February 2023): 

·       Choice of law: Foreign couples married abroad can now have their divorce governed by their home country's laws.

·       Civil alternative: Non-Muslims can choose to divorce through the Civil Family Court system, offering a faster and more familiar process.

·       No-fault divorce: Both spouses can initiate divorce without proving fault or justifying reasons for separation.

·       Shared custody: Emphasis on shared custody arrangements, prioritizing the children's best interests.

·       Financial settlements: Equitable distribution of assets and spousal support, ensuring financial security for both parties.

Benefits for Expats:

·       Increased flexibility: Expats can now choose a divorce process that aligns with their cultural and legal expectations.

·       Equality and fairness: The new system protects the rights of both spouses and promotes a fairer outcome.

·       Reduced stress and time: Civil divorce procedures are generally faster and less emotionally draining.

·       Better legal protection: Expats have stronger legal safeguards and clearer expectations regarding divorce settlements.

Additional Points:

While the Civil Family Court system offers a civil option, Sharia-based divorce remains available for Muslim couples.

The process may differ depending on the Emirate and the specific circumstances of the marriage.

Consulting with a qualified legal professional familiar with U.A.E. family law is crucial for navigating the divorce process effectively.

4. Child Custody in the United Arab Emirates (UAE)

The UAE has undergone significant changes to its child custody laws in recent years, especially for expats. Here's an overview of the key changes:

Pre-2023 System:

·       Custody based primarily on Sharia principles, favoring the mother for pre-pubescent children and the father for older children.

·       Limited options for non-Muslim expats.

·       Focus on the rights of the parents over the child's best interests.

New System (February 2023):

·       Joint custody: The Law emphasizes joint custody arrangements, prioritizing the child's best interests.

·       Shared decision-making: Both parents have equal rights in making significant decisions affecting the child's upbringing.

·       No automatic preference: Neither parent has an automatic right to custody solely based on gender or religion.

·       Child's opinion: Consideration of the child's age and maturity when determining custody arrangements.

·       Civil Family Court: Non-Muslim expats can utilize the Civil Family Court system for custody disputes.

Benefits for Expats:

·       Greater fairness: The new system promotes a more equitable approach to child custody.

·       Child-centric: Focus shifts to prioritizing the child's well-being and best interests.

·       More options: Expats have more flexibility in choosing the custody arrangements that suit their family.

·       Increased involvement: Both parents have a greater opportunity to be involved in their child's life.

Additional Points: 

·       The specific custody arrangements will be determined by the court based on a comprehensive assessment of the family's circumstances.

·       Factors considered may include the child's age, needs, emotional well-being, relationship with each parent, and stability of each parent's home environment.

·       Consulting with a qualified family lawyer experienced in UAE child custody cases is crucial for navigating the legal process effectively.

·       Previously based on Sharia principles, favoring the father in most cases.

·       New laws emphasize the child's best interests as the primary factor in determining custody.

·       Ensures a more child-centric approach to custody decisions.

5. Wills in the UAE: A Comprehensive Guide

Will play a crucial role in ensuring the orderly distribution of your assets after your death. In the UAE, the recent legal reforms have significantly impacted the landscape of wills, especially for non-Muslims. Here's a comprehensive guide to understand the key changes:

Pre-2023 System:

·       Limited options for non-Muslims, often requiring adherence to Sharia inheritance laws.

·       Complex procedures involving registration with multiple authorities.

·       Uncertainty and ambiguity surrounding the validity of wills drafted under foreign laws.

New System (February 2023):

·       Choice of law: Non-Muslims can now draft wills specifying their preferred asset distribution, governed by their home country's laws.

·       Greater flexibility: Expats have more options for drafting and registering their wills, including through DIFC Wills Registry or Abu Dhabi Judicial Department.

·       Clearer legal framework: The new system provides greater clarity and predictability regarding the validity and enforcement of wills.

Key Features:

·       Freedom of choice: Non-Muslims can choose who inherits their assets, regardless of their religion or relationship.

·       Specificity and clarity: Wills allow individuals to clearly specify their wishes for asset distribution, minimizing potential disputes.

·       Appointment of guardians: Individuals can appoint guardians for their minor children through their wills.

·       Protection of assets: Will ensure that assets are distributed according to your wishes, reducing potential conflicts among beneficiaries.

Types of Wills: 

·       Non-Muslim Wills: Drafted in accordance with the chosen law, usually the home country's legal framework.

·       DIFC Wills: Registered with the DIFC Wills Registry, applicable to assets located in any Emirate of the UAE.

·       Abu Dhabi Wills: Registered with the Abu Dhabi Judicial Department, valid for assets within Abu Dhabi Emirate.

Benefits for Expats: 

·       Peace of mind: Knowing your assets will be distributed according to your wishes provides peace of mind for you and your loved ones.

·       Reduced stress: A clear will minimizes potential disputes and simplifies the estate administration process.

·       Protection of family: You can ensure your family's financial security and well-being after your death.

·       Greater control: You have the power to determine the future of your assets and legacy.

·       Additional Points:

Consulting with a qualified legal professional familiar with UAE wills and inheritance laws is crucial for drafting a valid and effective will.

Translation and attestation of the will may be required depending on the chosen law and registration authority.

Regularly reviewing and updating your will is essential to reflect any changes in your circumstances or wishes.

Non-Muslims can now leave property to whomever they choose in their will.

In the absence of a will, half the estate goes to the spouse, and the rest is divided among children.

Provides greater control over asset distribution after death.

6. Paternity in the United Arab Emirates (UAE)

The legal framework surrounding paternity in the UAE has undergone significant changes in recent years, particularly for non-Muslim ex-pats. Here's a comprehensive overview of the key changes: 

Pre-2023 System: 

·       Primarily based on Sharia principles, recognizing paternity through marriage or acknowledgment by the father.

·       Limited options for non-Muslim expats to establish paternity.

·       DNA testing not readily available or legally recognized for non-Muslim cases.

New System (February 2023): 

·       DNA testing: Admissible as evidence in determining paternity for non-Muslims, offering a more objective and conclusive approach.

·       Presumption of paternity: Established for married couples unless challenged through legal proceedings.

·       Choice of law: Non-Muslim expats can choose the law of their home country to govern the determination of paternity.

·       Civil Family Court: Provides a legal avenue for non-Muslims to address paternity disputes.

Key Features:

·       Greater clarity and certainty: DNA testing provides definitive evidence of biological fatherhood, reducing ambiguity and potential disputes.

·       Enhanced legal protection: Non-Muslim fathers have stronger legal standing and rights impact:

These changes represent a significant shift towards a more modern and inclusive family law system in the U.A.E. They offer greater flexibility, fairness, and respect for the rights of all family members, particularly ex-pats. These reforms contribute to the U.A.E.'s efforts to attract and retain foreign talent, enhancing its position as a global business and tourism hub.

Disclaimer: This information is for general knowledge and does not constitute legal advice. Please consult with a lawyer for specific legal advice regarding wills and inheritance in the UAE.

Here are some resources for further information:

Al Tamimi & Company: https://www.tamimi.com/client-services/practices/family-business/

The National: https://whatson.ae/2023/10/4-new-rules-introduced-in-the-uae-in-2023-to-know-about/

Reuters: https://www.reuters.com/world/middle-east/new-abu-dhabi-personal-status-law-non-muslims-includes-civil-marriage-wam-2021-11-07/

International Adviser: https://www.horizlaw.ae/news/changes-inheritance-laws-uae-1-february-2023-what-you-need-know

Non-Muslim expats require a will in U.A.E

Death is something we don’t usually think of, but something we should plan for, but rarely do. Friends Provident International (FPI), a financial institution, on Monday released a guide for non-Muslim expatriates on how they can take care of their families in the event of premature death in the UAE.

Titled ‘A matter of life and death’, the guide covers the 14 key issues for expatriates, should the worst happen.

Issues like frozen bank accounts when the account holder dies, leaving a will, and other issues most expatriates are not aware of are addressed to make it easier for families to handle the assets of the deceased.

Having a will for non-Muslim expatriates is important as there is no right of survivorship in the UAE. This means assets are not automatically passed on to the surviving joint owner upon the death of the other unlike in many countries.

When a non-Muslim expatriate dies, in the absence of a will, the courts will automatically apply Sharia to distribute assets.

If there is a will, inheritance will be governed by the person’s national law under the Civil Transactions Law of the UAE. Note that whether a will is present or not, fixed or immovable assets such as property in the UAE are still subject to Sharia.

Marcus Gent, managing director of the Middle East and Africa at FPI, said many expatriates are not aware of the repercussions of a death in the family when living in the UAE.

“While no one likes to think about dying — and indeed no one should spend too much time thinking about it — knowing that you have taken steps to ensure your family is taken care of, even if you’re not around, can be a great source of comfort,” Gent said.

Philip Cernik, chief marketing officer, Middle East and Africa at FPI, said life as an expatriate in the UAE can be fulfilling, but complications can arise when it comes to death unless plans are made accordingly.

This is where the checklist is helpful as it covers such matters as writing a will, how to register a death and how to arrange for the burial, cremation or repatriation of remains.

But writing a will is not for everyone, said attorney Barney Almazar, a licensed legal consultant and partner at Gulf Law.

“The writing of a will should not be seen as morbid, but as a wake-up call for residents who have substantial assets. So obviously, if you have valuables to pass on, write a will,” Almazar told Gulf News.

Almazar said there are many ways to write a will. A lawyer can draft a will for the testator in accordance with his or her country’s national laws, and the testator can have it notarized in his or her embassy and then attested at the Ministry of Foreign Affairs in the UAE.

Another option is to have it done at the Notary Public of the Dubai Courts for roughly Dh2,250.

For those who prefer wills drawn up in English, another option is available through duly licensed legal consultants registered with the Dubai International Financial Centre (DIFC) Wills and Probate Registry.

This may cost between Dh2,500 and Dh5,000 for a single will and from Dh4,000 to Dh10,000 for mirror wills.

With the DIFC will, you no longer need to have everything is translated into Arabic and heard using Sharia. You can simply proceed with your will in English and use the internationally recognised Common Law.

Points non-Muslim expatriates must remember

1) Leave a will.

2) Ensure your children are taken care of.

3) Outline who should inherit your property in your will.

4) Structure your bank accounts carefully.

5) Consider inheritance taxes in your home country.

6) Use a trust or beneficiary nomination for your life insurance.

7) Make sure you nominate beneficiaries for your end of service gratuity.

8) Check whether you qualify for death in service benefits.

9) Think about how your death would impact your dependents’ residency.

10) Think about your digital life.

11) Registering a death in the UAE and repatriation of remains. (Guide is on their website)

12) Burial and cremation. (Guide is on their website)

13) Prepare a checklist of people that need to be informed if you pass away.

14) Make sure you have adequate cover.