What happens to my family and assets following my death? An Inheritance question that troubles a lot of expatriates living in the UAE. The DIFC Wills and Probate Registry as a public entity of the Dubai Government and an ancillary body of the DIFC’s Dispute Resolution Authority offers, since May 2015, a first-of-its-kind service in the MENA region, one that allows non-Muslims a greater choice in determining how their assets in the Emirate of Dubai and/or, Ras Al Khaimah are to be distributed and in appointing guardians for their minor children residing in one of the two Emirates following their death.

For a DIFC Will registration, the following four key criteria are to be met:

• The Testator is not a Muslim and has never been a Muslim.
• The Testator is over 21 years of age.
• The Testator owns assets in the Emirate of Dubai and/or Ras Al Khaimah (however no requirement to be resident in the UAE).
• Any children for which the Testator wishes to appoint interim and/or permanent guardians for must be habitually resident in the Emirate of Dubai or Ras Al Khaimah.

Legal Situation in the Absence of a Will

Inheritance:

The distribution of assets following a death is normally guided by the UAE federal law (Personal Status Law and the Civil Transactions Code) and public order in accordance with the custom and principles of Shariah law. The UAE Courts will assess the Estate and most likely distribute the assets in accordance with Shariah law, where distributions follow strict regulations and forced heirship rules. Most of the expatriates are not familiar with these rules. In any case, until the inheritance is clarified, bank accounts and other assets remain blocked and subsequently companies might be temporarily paralysed as the shares are frozen.

Example:

The deceased leaves behind: a spouse (wife), three common children (one son and two daughters), both parents and one brother.

The distribution of the assets from the deceased would be as follows under Sharia Law:

Guardianship of minor Children:

In the event of a husband’s death, in accordance with Shariah law, the mother does not automatically receive the guardianship of her children. A surviving husband is usually appointed as a custodian and legal guardian of the common children. If both parents die, culturally, guardianship is given to the father’s side of the family.

Real Estate:

The application of home country law to immoveable assets remains a grey area in UAE Courts’ proceedings. It is assumed that many have either abstained from buying property or investing in UAE companies because of this uncertainty, or have used an offshore company to secure these real estate assets.

Foreign (Home Country) Law Wills

In the past, people often set up wills in accordance with their home country law. The will was then translated into Arabic, stamped by the UAE notary public, Ministry of Justice and Ministry of Foreign Affairs and submitted to the UAE Courts for its honouring. However, the UAE Courts of first instance usually applied Shariah law instead of applying the Testator’s will. Subsequently, only by appealing the court decisions, the will was honoured as initially drafted.

The UAE Court proceedings are very complex for foreigners, as the court language is Arabic and all documents need to be translated into Arabic. As the UAE courts are usually surcharged with cases, the proceedings can take several months if not years to be completed.

DIFC Will and Probate Registry

In May 2015, the Dubai International Financial Centre (DIFC) opened the DIFC Wills and Probate Registry, which allows non-Muslims to freely dispose of their Dubai assets in the event of death (testamentary freedom). Since 2017, Ras Al Khaimah assets can be included as well. More than 3,000 Wills have been registered.

The Will Registry is an administrative body and does not have judicial functions. It is the DIFC courts issuing the probate grants and court orders for the distribution of the Dubai and/or Ras Al Khaimah assets and guardianship orders for the protection of minors.

The DIFC wills can finally promote certainty among expatriates, promote investment in Dubai and Ras Al Khaimah and avoid family members becoming involved in uncertain proceedings that can be encountered in the UAE courts. To the relief of expat families in Dubai and Ras Al Khaimah is that provisions for guardianship of minor children can be included.

Different Types of DIFC Will

As a parent, you are concerned about the welfare of your children and the arrangements for their care should you and/or your partner pass away. With the ʺGuardianship Willʺ, the Will Registry allows the parent(s) to register a DIFC Will solely providing for the appointment of guardians for the Testator’s children (of 21 years old or younger) being residents in either Emirate, Dubai or Ras Al Khaimah. Following the death of the Testator, the DIFC Courts can issue both ‘Interim Guardianship Orders’ as well as ‘Permanent Guardianship Orders’, honouring the Testator’s wishes – provided that the nominated guardians meet the eligibility requirements and their appointment does not contravene UAE public policy.

Furthermore, the Will Registry provides a DIFC Will specific to the Testator’s real estate properties situated in the Emirate of Dubai and/or Ras Al Khaimah. This ʺProperty Willʺ can encompass up to five real estate properties (or a share in up to five real estate properties).

In case the Testator intends to dispose of more than five real estate properties and/or a variety of assets such as bank accounts, movables (e.g. watch or car) or shareholdings in either Emirate, Dubai and/or Ras Al Khaimah, the Will Registry provides for the ʺFull Willʺ. Besides these instructions on the distribution on the various assets, the Testator can nominate guardians for his/her children by including guardianship provisions in this all-embracing, covering all sorts of assets, will.

The ʺFree Zone Company Willʺ can encompass up to five separate shareholdings in any free zone company situated in the Emirate of Dubai or Ras Al Khaimah. The free zone in which the Testator’s shares are held must be established in either Emirate, Dubai or Ras Al Khaimah, in accordance with UAE Federal Law.

A single Testator can only register a ʺSingle Willʺ, whereas in case the Testator is married and both, the Testator and wife/husband, wish to register a DIFC Will at the same time, then the ʺMirror DIFC Willʺ option should be selected (as this option grants an overall net reduction in registration fees).

Non-Muslim Will with Dubai Courts

The Law on the administration of non-Muslims’ estates and execution of their wills in Dubai (Law No. 15 of 2017), entered into force in late 2017, is bringing onshore Dubai in line with the existing register for wills in the Dubai International Financial Centre (DIFC). The provisions of this new Law apply to the wills and estates of non-Muslims in the Emirate of Dubai (including the DIFC).

The Law requires a will to be registered with the Non-Muslim Wills and Probate Register in the Dubai Courts, which has not yet been established at the time of writing. For now, the will can be registered with the Dubai Notary Public. The registration for such will requires the following:

• the testator must be non-Muslim and at least 21 years old;
• the will must be valid;
• it shall appoint an executor and indicate the method of disposing of the relevant property;
• it has to be signed or stamped or sealed by the testator in the presence of two witnesses;
• all the required fees must be paid.

In line with any other document submitted to the Dubai Courts, if the will is in writing and in any other language than Arabic, it needs to be accompanied by an approved legal translation as Arabic always prevails in Dubai Court proceedings (also probate proceedings).

Contrary to the DIFC will which can only cover assets in the Emirates of Dubai and/or Ras Al Khaimah, a will registered with Dubai Courts can cover assets across the whole UAE. Bank accounts, property, guardianship and all other clauses in the will are applicable in all emirates during execution of the will.

The registration fee for such will with the Dubai Courts is AED 2,000.

Non-Muslim Will with Abu Dhabi Non-Muslim Registry

With the introduction of a wills registry for non-Muslims in Abu Dhabi, Sheikh Mansour bin Zayed, Deputy Prime Minister and Chairman of the Abu Dhabi Judicial Department, has issued a resolution to create a registry of wills and probate for non-Muslims in the emirate. This new registry will help close a gap in the legal system as there was no clear mechanism for the registration of wills for non-Muslims in the emirate and the only way to secure their assets was to request the application of the law of their home country, in keeping with the UAE’s personal status law.

The fees for the will registration with the Abu Dhabi Non-Muslim Will registry is AED 750 (without translation).

After the review of the finalised draft will by the Registry, the testator has to approach the registry for the signing and registration of the will.

Michael Lane

Senior Legal Consultant

Mob (UAE): +971-56-856-9150

Mob (CH):   +41-79-771-7837

Email: [email protected]

Swiss ILC Services DMCC                                      

Swiss Tower, Office 3601

JLT, Cluster Y

Dubai, UAE

Tel: +971-4-374-0700

Fax: +971-4-374-0701

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A new marina is en route at Nakheel’s Azure Residences waterfront condo complex on Dubai Palm Island eastern trunk. Another at The Pointe, Nakheel Malls’ forthcoming seafront dining and retail destination.

Awarded by Nakheel

Nakheel has appointed Majestic Marine Engineering LLC to build the new facilities. Applied Technology & Management, Inc. (ATM) the appointed consultants.

Due for finishing this year, the marinas will suit an aggregate of 44 water crafts and yachts up to 30 meters in length. It will supplement Nakheel’s two existing marinas on the island, at Palm Views East and West, which are as of now at full limit with 556 moorings. This will surely add value to Azure Residence and The Pointe.

About Azure Residence

Azure Residences is a one of a kind beachfront project on Dubai Palm Island Jumeirah which contains an accumulation of extravagance beachfront condos and feasting outlets directly overlooking the Ocean.

The ten-story complex highlights 170 one and two bedroom contemporary condos with private patios. Offering all encompassing perspectives on the water and Dubai horizon. Azure Residences has its very own ocean confronting infinity pool pool, a housetop rec center and 266 vehicle parking spots. Eight eateries and bistros give a decision of feasting choices including Il Faro, the signature restaurant at the jetty, offering staggering 360-degree views.

Azure Residence Condos

Every one of the stylish one and two-room condos has its very own extensive patio with all encompassing perspectives over the water to the famous Dubai horizon. With insides completed to an outstanding standard, from premium marble floors and extravagance fittings in the kitchen and restrooms, to a vitality productive cooling framework, each angle has been cautiously considered to give a definitive in current extravagance living.

More info about Azure Residence can be found here: CLICK HERE

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Over 10 years since the Palm Jumeirah respected its first occupants, one of the world’s biggest man-made islands is as yet developing. Lavish inns keep on jumping up, epic manors are planned and assembled and up-to-date new condos enter the market promising a mollified way of life trickling with extravagance. One of the newest additions is the W Residences on the West Crescent, where 104 penthouses are spread more than eight groups known as “mansions”.

For your a large number, you get a one of a kind floor plan and format spread out over a developed zone of a little more than 15,000 sq.ft. Enthusiasts of great open arrangement will be in fortunes for this four-room penthouse accompanies an immense living region with perspectives out into the Arabian Gulf. The apparatuses and fittings are obviously high caliber, while the finishing are a blend of rich wood, marble and stone.

Alongside the prime inside of the Penthouse at W Palm, purchasers additionally get a best end way of life experience outside. There’s a platform level endlessness pool, a private shoreline, tennis court and strolling track. At that point there’s the restrictive Club 104 for occupants, including a film, eatery, lounges and a wellness focus. In the event that that is insufficient, the improvement is abutted to the W Dubai – The Palm lodging which offers further administrations.

To view further details: click here

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All listed properties on Dubai Palm Island are freehold properties.  100% ownership for expats, whether a UAE resident, or not, of any nationality. As stipulated in the laws of Dubai.

Bank Accounts

We have established relationships with many of the leading banks in the UAE and can assist you with advice on opening a bank account in Dubai, should you require it, although it is not necessary to have a local bank account to make a property purchase.

Government Tax

Dubai is a tax-free destination and there are no taxes relating to the purchase of property.  There is no Capital Gains Tax either.  You will however be required to pay 4% tax equivalent to the purchase price of your property, once the Lands Department registers your title deed. The title deed registration fee of 4% is paid directly to the Dubai Land Department on transfer date.

Mortgages

Residents can apply for a 25/75 mortgage, whereas no-residents are able to apply for a 50/50 mortgage. Both applications are simple and most leading banks will lend.

Should you have a mortgage with your next property purchase, you will be required to pay 0.25% of the value of the loan to the Dubai Land Department on transfer date, which is when your new home’s title is transferred to your name.

Development Service Charges

Service charges cover community services which include garbage collection, security, maintaining facilities like pools, gardens and the like. Services charges in average amount to AED 15 per square foot on the size of your property as stated in the title deed.

Dubai Residency

Every investor/end user, and their immediate families, will be issued with residence visas, according to the laws of the UAE, if minimum AED 1 million for a property has been paid already.  Visas will need to be renewed every 2 years, as per immigration regulations.

If you have any further questions, we are glad to help you out.

We can assist you in the following categories:

• Bank Account advise

• Mortgage advise

• More Information on how to buy

• Property regulations

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