You should know about non-Muslim wills in UAE

If you are a non-Muslim expat or an overseas investor with assets in Dubai or Ras Al Khaimah but residing in your home country, you better get a will done to ensure smooth inheritance to your chosen beneficiaries. Without a will, chances are that your assets will be passed on to specific blood relatives as per the local inheritance law that follows Sharia principles of pre-determined allocation.

“In the absence of registering a will, then you will be looking at Sharia that will distribute that property to specific blood relatives in a predetermined proportion,” says Sean Hird, director of DIFC Wills Service Centre (WSC).

Established in 2015, the DIFC Wills Service Centre provides a system whereby non-Muslims can register a will at the DIFC Courts, Dubai’s international English language commercial courts.

Many expats who live in the regional Islamic countries and often outnumber the locals may not be aware that they are governed by Sharia when it comes to inheritance, although their home countries may have a different set of laws. However, in an effort to enhance Dubai as a destination for foreign investment, the government, through a federal law, has allowed non-Muslims to opt out of Sharia and chose their home country law in the matter of heritance.

“It’s a government initiative that’s responding to the needs of those investing and living in Dubai and RAK. It is an initiative that provides freedom of choice and certainty of outcome in terms of distribution that you get,” says Hird, adding that this makes Dubai even more competitive and attractive as an international property investment destination, as it creates a level playing field in respect to inheritance. To make things easier for people who are non-residents and can’t visit in person to register a will, the WSC also offers first-of-its-kind virtual registry options whereby everything — right from creation and registration to witnessing — can be done online using video-link, and identity verification offered through VFS Global centres spread across 129 countries.

Here are five things you should know about non-Muslim wills and why you must invest in it:

1. Dubai, being a Muslim country, follows Sharia under which inheritance arrangements are pre-determined — specific blood relatives are given predetermined allocations, with no discretion.

2. But non-Muslim residents and non-residents with assets in Dubai and RAK have the option of opting out of Sharia through a will and chose their home country laws for inheritance arrangements.

3. Wills can be made using freely available will templates on the WSC website after paying relevant registration fees, which range from Dh5,000 to Dh7,500 depending on the template used. Wills can be registered with the DIFC Court from anywhere in the world using a virtual registry facility via video-link, using mobiles, laptops or computers.

4. There are currently five types of DIFC wills: guardianship will, the property will, free zone company will, financial assets will and the full will. Except for the full will and the guardianship will, all other wills can be registered online at the moment.

5. There is no restriction on what types of the asset can be covered by the DIFC Will, as all moveable and immovable assets from apartments, land and cars to company shares and monies in bank accounts can be included.

The Abu Dhabi Judicial Department reduced Will Registration Charges for Non-Muslims

The ‘wills’ registration office in the capital where many non-Muslim residents register their wills, has reduced the registration charges from Dh5,500 to Dh950 from December.

Though the service charge was only Dh500 when the service started in August from November, the office revised the service fee and started charging Dh5,500 for a ‘will’ registration. The Abu Dhabi Judicial Department [ADJD] reduced it to support the registry of wills.

In case of sudden death of the testator, the assets will be distributed by the court as per the will. The wills registration office for non-Muslims builds up the confidence among residents of legal protection of their assets in the UAE and it ensures them the liberty of selecting the appropriate method to write and register their will concerning the disposal of their estate after their death.

A spokesperson of the Abu Dhabi Judicial Department said: “Now the service fee is only Dh950 for registering a will.”

The spokesperson said: “Any person can bequeath his/her estate to males and females equally and in case of his/her death, the assets will be distributed by the court as stated in the testator’s will.”

Whereas the changing or revoking of will is concerned, the testator can revoke the will at any time, or otherwise replace it by a new one, the spokesperson said.

The office helps to legalise a will of a non-Muslim for the disposition of a deceased’s estates, nominating a guardian for his/her minor children, he said. From August last year, a special “Non-Muslims Wills Office” started operations at the Abu Dhabi Judicial Department to register inheritance wills for non-Muslim expatriates in the capital.

As people from many nationalities live in the UAE, they can now legally register their will here. It guarantees that their families and children can legally claim the assets in the UAE in case of testator’s death.” As per the will, beneficiaries can claim assets of the testator anywhere in the UAE, whether they register in Abu Dhabi or Dubai. It will be valid for all the UAE.

“More than 50 of my clients have registered their wills at the Abu Dhabi office but I can say that approximately, so far, more than 100 expatriates would have registered their wills at the Non-Muslims Wills Office in Abu Dhabi,” he said.

About the different services fees, he said, the Dubai Courts charges Dh2,165 for registering a will and Dubai International Financial Centre (DIFC) Courts takes Dh10,000.”

The office in Abu Dhabi was established after a decision issued in May by Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, who is also the chairman of the Abu Dhabi Judicial Department, to create a registry of wills office and probate for non-Muslims.

The application is submitted online at [ADJD] website. The competent employee verifies if the application meets the requirements. A notification by SMS is sent to the applicant with the approval of the application or request for modification. The application fee is paid online through ADJD website.

The applicant can contact the Non-Muslim Wills Registration Office to schedule an appointment for the application processing. Then the applicant has to visit on the fixed date the Non-Muslim Wills Registration Office to submit the original documents. After completing these procedures, finally, the will is legalised and will be delivered by the Notary Public of the department.

REQUIRED DOCUMENTS

• Emirates ID.

• Passport (original and a copy).

• The document “Will” to be legalised, with a sufficient number of copies for all parties concerned and a copy of records.

• Documentation that provides clear proof of the bequeathed property ownership.

• An official translation attested by the Ministry of Justice is required where the document is drafted in a language other than the Arabic language.

• Venue: Abu Dhabi Judicial Department (Main Building)

• Timing: 8am to 2pm [Sunday to Thursday]

• Service Fee: Dh950

Non-Muslim expats in Dubai allows writing wills

Non-Muslim expatriates in Dubai were given renewed legal protection to execute legal wills that dispose of assets and properties according to their last wishes.

A new law issued on Tuesday prescribes a “clear legal framework” that regulates inheritance, wills and probate for non-Muslim expats in Dubai who are living for long periods in the emirate and accumulating larger, long-term assets, including investment portfolios and property.

The new law affirms that non-Muslim expats living and working in Dubai can register a will in English under internationally recognised Common Law.

The move follows the creation of a non-Muslim will registry in Abu Dhabi announced in May of this year.

For Muslims, the courts automatically apply Sharia and distribute assets to predetermined beneficiaries.Law No. 15 was issued on Tuesday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“The law, which is applicable to the wills and assets of non-Muslims based in Dubai, including the Dubai International Financial Centre (DIFC), creates a clear legal framework for non-Muslims to create wills according to their wishes,” an official statement said.

“It also outlines clear legal procedures that will encourage residents to register their wills and manage their assets in Dubai, thereby creating increased confidence in Dubai’s investment landscape.”

The new law applies in both Dubai Courts and Dubai International Financial Centre (DIFC) Courts where senior officials have the legal authority to develop the regulations, policies and procedures for the registry.

The law also spells out “the liabilities and obligations of the beneficiaries of wills, the responsibilities and limitations of will executors, the regulations governing inheritance and the distribution and management of the estate as well as appeal procedures. Disputes arising from wills and probate for non-Muslims will be adjudicated by Dubai Courts or DIFC Courts, depending on the place where the wills are registered”, the government said.

“Any non-Muslim wills registered at Dubai Courts or DIFC Courts prior to the law will remain valid. The law annuls any other legislation that challenges or contradicts its articles and is valid from the date of publication and will be published in the Official Gazette.”

The right of survivorship, where assets are passed on to the surviving joint owner upon the death of the other, does not apply in the UAE.

The DIFC Wills and Probate Registry (DIFC WPR) for Non-Muslims, which covers assets in Dubai and Ras Al Khaimah, had 2,900 registered wills since opening in May 2015, Gulf News reported last September, with an average of 150 wills being registered each month.

In an interview with Gulf News at the time, Sean Hird, director of the DIFC WPR, said options were available should expats prefer to specifically name those to whom their assets in the UAE should go to when they die.

“We are a government service providing choice. It’s all about giving people freedom of choice — either to follow Sharia or have a will. If you are a non-Muslim, you have a choice to do a DIFC will and opt into this system which will provide you with certainty,” Hird told Gulf News in a prior interview.

Registering an expat will at Abu Dhabi Courts

May 2017 onwards, non-Muslim expatriates have been able to dictate how they want their assets distributed when they die without Sharia law being applied to their will.

This came about thanks to a change in the rules governing how expat wills were handled with the introduction of a wills registry at the Abu Dhabi Judicial Department. This now ensures no dispute or confusion over a deceased’s belongings or custody of their children – a huge step for the UAE’s legal system, offering protection for families at a very sad time in their lives. Here is how the registry works:

What is a will?

A will is a legal document that you prepare in your lifetime dictating how you would like your wishes to be applied at the time of your death. These wishes can include the guardianship of your children, how you would like your estate to be distributed, who you would like to execute the will, your funeral arrangements and your general final wishes.

What are the UAE's inheritance laws?

Inheritance laws in the UAE are based on Sharia law, which is governed by the Islamic law and there is a set formula for each person in the family to inherit a particular share. The judge then decides on the shares, so if you do not have a will in place, the UAE law is applied and the judge applies it accordingly.

How a power of attorney helps with succession planning in the UAE

A power of attorney (PoA) – a legal document that allows you to appoint a representative to manage your affairs – should be appointed during your lifetime. This means if you are mentally incapacitated or, for example, seriously ill in a coma, then a PoA, which the majority of the time is a family member or trusted friend, can manage your affairs or estate on your behalf.

It is a very powerful document and can run the risk of being used in a good or bad way – good meaning you give the PoA to the right person and that individual manages your affairs and looks after your interests in the best manner, However, a PoA can also be misused to go against your wishes.

How to get a will registered at the Abu Dhabi Judicial Department

You can do the entire process alone, however having a legal consultant on board helps to verify various documents and can ease the process. The steps to follow are:

Step 1: Draft a will

A will should mention your beneficiaries, executors, guardians and how you want your estate to be distributed. Ensure you mention the full name, nationality, date of birth and place of birth of your beneficiaries as well as your relationship to them. Failing to do so can cause complexities in the estate distribution after death.

Step 2: Translation

Your will must translated as the court registers both the Arabic and English versions. The translation costs around Dh1,500 to Dh2,000 depending on the case. Ensure a legal translator registered with the ministry of justice department carries out the translation.

Step 3: What to bring

• Emirates ID (original and photocopy)

• Passport (original and photocopy)

• Three copies of the will - one copy for the court and two for you

• Title deeds - if you mention any properties in the will, you need copies of the title deeds

Step4: Fix an appointment

•  Log onto the registry's official site
• Create an account (the applicant must be over 21 to register)
• Pay the Dh500 fee online
• Fix an appointment

Step 5: Visit in person

Go to the court on Al Khaleej Al Arabi Street near Zayed Sports City and take a token from reception and wait for your number to be called.

The court is open from 7.30am to 3pm Sunday to Thursday.

Who executes the will?

It can be difficult to select a person who is reliable and trustworthy to handle such a stressful job. But people generally nominate their partners or children over the age of 21. Note that wills registered at the Abu Dhabi Judicial Department are valid in every emirate.

The benefits of having a will

If you die unexpectedly, a will dictates exactly how your personal affairs are handled from your funeral arrangements to your finances and the care of your children. It simply ensures your wishes are applied and that your family follows it. Having no will in place can cause fights among family members with money sometimes awarded to the wrong people. So, get a will in place to give yourself peace of mind should the worst happen.