Estate planning is an essential step for anyone looking to protect their assets and ensure their wishes are respected after their passing. In the United Arab Emirates, inheritance laws follow Sharia principles, which can affect the distribution of assets for non-Muslim residents and investors. To address this, the DIFC Wills Service Centre offers a legal framework that allows individuals to control how their estates are distributed.
This article explores DIFC wills, how they work, and why they are crucial for expatriates, business owners, and property investors in the UAE.
What are DIFC wills?
DIFC wills are legal documents registered under the jurisdiction of the Dubai International Financial Centre, an independent common law system that provides non-Muslims with the ability to distribute their assets according to their wishes. These wills allow expatriates and investors to bypass Sharia inheritance laws and ensure that their properties, bank accounts, and other assets are passed on to their chosen beneficiaries.
The DIFC Wills Service Centre was established in 2015 as a collaboration between the DIFC Courts and the Dubai Government to provide a secure estate planning solution for non-Muslims. The service ensures that wills registered under DIFC jurisdiction are legally binding and enforceable in Dubai and Ras Al Khaimah.
How do DIFC wills work?
The process of creating and registering a DIFC will is straightforward and follows a structured legal framework. Here are the key steps:
1. Eligibility requirements
DIFC wills are available exclusively for non-Muslims who are at least 21 years old. Individuals must either own assets in Dubai or Ras Al Khaimah or reside in the UAE. This makes them particularly relevant for expatriates and foreign investors who wish to protect their wealth.
2. Types of DIFC wills
The DIFC Wills Service Centre offers several types of wills to suit different needs:
- Full will – Covers all assets, properties, and guardianship preferences.
- Guardianship will – Focuses solely on appointing guardians for minor children.
- Property will – Covers real estate assets located in Dubai and Ras Al Khaimah.
- Business owners will – Specifically designed to ensure business shares are transferred according to the individual’s wishes.
- Financial assets will – Covers cash, investments, and other financial holdings.
Individuals can choose the type of will that best aligns with their estate planning goals.
3. Drafting the will
A DIFC will must be carefully drafted to ensure clarity and legal validity. Many individuals consult legal professionals specializing in estate planning to draft a document that complies with DIFC regulations. The will should include:
- Details of the testator (person making the will)
- List of assets and their intended beneficiaries
- Appointment of executors to carry out the wishes of the will
- Guardianship appointments for minor children if applicable
4. Registration and notarization
Once the will is prepared, it must be registered with the DIFC Wills Service Centre. This process includes:
- Scheduling an appointment at the DIFC Wills Service Centre
- Signing the will in the presence of authorized officials
- Paying the applicable registration fees
DIFC wills can be registered in person or virtually through video conferencing, making the process accessible to those outside the UAE.
5. Enforcement of the will
Upon the testator’s passing, the DIFC Courts oversee the execution of the will, ensuring that assets are distributed according to the document’s instructions. Unlike wills processed under UAE civil courts, DIFC wills do not require additional approvals or adherence to Sharia law, making them more efficient for non-Muslims.
Why do you need a DIFC will?
For many expatriates and foreign investors, having a DIFC will is an essential part of securing their financial future. Here are some key reasons why DIFC wills are important:
1. Control over asset distribution
Without a DIFC will, non-Muslim expatriates risk having their assets distributed according to Sharia inheritance laws, which may not align with their personal wishes. A DIFC will ensures that properties, bank accounts, and investments go to the intended beneficiaries without legal complications.
2. Protection of family members
For those with minor children, a DIFC will allows parents to designate legal guardians in the event of their passing. This ensures that guardianship decisions remain in the hands of the parents rather than being determined by UAE authorities.
3. Business continuity
Business owners can use DIFC wills to ensure their shares and stakes in companies are transferred to their chosen successors. This prevents disruptions in business operations and allows heirs to maintain ownership without legal disputes.
4. Avoiding lengthy legal processes
Inheritance disputes and legal procedures can be time-consuming and costly. A properly drafted and registered DIFC will streamlines the estate settlement process, allowing beneficiaries to access assets without unnecessary delays.
5. Secure and enforceable legal protection
DIFC wills are recognized by the DIFC Courts, which operate under an independent common law system. This ensures that wills are legally binding and enforceable, providing individuals with confidence in their estate planning decisions.
Wrapping Up
DIFC wills provide non-Muslim expatriates and investors in the UAE with a reliable legal framework to protect their assets and ensure their estate is managed according to their wishes. By offering control over asset distribution, safeguarding family interests, and ensuring smooth business succession, DIFC wills play a vital role in estate planning.
For those with assets in Dubai or Ras Al Khaimah, securing a DIFC will is a proactive step toward financial security and peace of mind. Consulting a legal expert can help individuals navigate the process and tailor a will that meets their specific needs.
