How UAE Law Regulates Lifetime Financial Support to Relatives Through Legally Binding Annuity Agreements

Providing long-term financial support to a relative is not uncommon, particularly in cases involving education, healthcare, or personal maintenance. In the UAE, such arrangements can now be structured more clearly under the country’s updated civil law framework, offering legal certainty to both the person making the payment and the beneficiary receiving it.

The Federal Decree-Law No. 25 of 2025 Promulgating the Civil Transactions Law has laid down specific provisions governing life annuities, making it legally possible for a person to commit to periodic payments to a family member or any other individual for the duration of that person’s life.

Under Articles 948 to 952 of the law, a life annuity may be established without consideration, meaning it can be granted voluntarily without requiring anything in return. This allows individuals to legally undertake recurring financial support for purposes such as educational expenses, medical treatment, maintenance, or other personal needs.

The law recognises such obligations as valid, provided certain legal conditions are met. One of the most important requirements is that the arrangement must be made in writing. Without written documentation, enforcing such an obligation may become difficult, especially in the event of disputes or claims against an estate.

The legislation also clarifies that the annuity obligation may be linked to the life of the payer, the recipient, or even a third person. This gives parties flexibility in structuring the arrangement depending on their personal or financial circumstances.

However, the law also sets clear limits on the continuation of such obligations. A life annuity automatically comes to an end upon the death of the person making the payments. It may also be extinguished if the obligor becomes bankrupt or insolvent, unless alternative terms have been agreed upon in the original arrangement.

Where the person obligated to pay fails to fulfil the agreed payments, the beneficiary has the right to seek enforcement of the contract through legal channels. This makes the arrangement more than a personal promise, giving it the force of a contractual obligation under UAE law.

Importantly, if the payer dies before the beneficiary, the beneficiary may still claim a proportionate part of the annuity corresponding to the period that elapsed before the payer’s death. This amount can be recovered from the deceased’s estate as a bequest, unless the agreement expressly provides otherwise.

The updated law reflects the UAE’s broader move towards modernising civil and family-related financial arrangements, ensuring that private support commitments can be formalised and protected within the legal system. For individuals wishing to support relatives over the long term, a properly drafted written annuity agreement can provide both legal security and financial continuity.

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