UAE’s New Age of Majority Law Could Reshape Estate Planning, Inheritance and Family Wealth Transfers

The UAE's decision to lower the age of legal majority from 21 lunar years to 18 Gregorian years marks one of the most significant personal status and civil law reforms in recent years. Introduced under Federal Decree-Law No. 25 of 2025, the new Civil Transactions Law came into force on June 1, 2026, replacing the Civil Transactions Law of 1985.

While much of the public attention has focused on the headline change itself, the reform carries far-reaching consequences for estate planning, inheritance administration, family wealth preservation, and guardianship arrangements across the UAE.

From June 1, 2026, any individual who has completed 18 Gregorian years and possesses full mental capacity is recognised as a legal adult. This means they can independently enter contracts, own and manage assets, initiate legal proceedings, and exercise rights that previously became available only at 21.

For families with existing wills, trusts, succession plans, and asset-holding structures, the change is not merely procedural. It alters the legal foundation on which many estate planning arrangements were originally built.

A Fundamental Shift in Succession Planning

For decades, many estate plans in the UAE assumed that children would remain legal minors until the age of 21. Consequently, wills, guardianship provisions, trust arrangements, and inheritance structures were often designed around that benchmark.

With the age of majority now reduced by up to three years, beneficiaries may gain legal control over inherited assets much earlier than originally anticipated. In many cases, this could accelerate the transfer of significant wealth, business interests, investment portfolios, and real estate holdings.

The change raises an important question for families: Do existing estate plans still achieve the outcomes originally intended by the testator or settlor?

What the New Law Provides

Article 15 of Federal Decree-Law No. 25 of 2025 states:

"A person reaches the age of majority upon completing eighteen (18) Gregorian years."

The law also introduces a notable mechanism aimed at encouraging early economic participation. A minor who has reached the age of 15 may apply, through a guardian or trustee, for judicial authorisation to manage all or part of their assets. Any such authority remains subject to court approval and oversight.

Together, these provisions reflect a broader policy shift towards recognising greater financial and legal autonomy for young adults and, in certain circumstances, older minors.

Impact on Existing Wills

One of the most immediate areas affected by the reform is testamentary planning.

Many wills registered in the UAE, including those prepared through the DIFC Wills Service, were drafted on the assumption that beneficiaries would remain minors until 21. Distribution provisions, executor powers, guardianship clauses, and asset release mechanisms may therefore be linked to that age threshold.

Under the new framework, beneficiaries who have reached 18 may acquire the legal capacity to receive and manage inherited assets directly unless the will expressly provides otherwise.

This creates potential challenges where the testator intended a longer period of protection or oversight but relied on the statutory definition of minority rather than clearly specifying alternative arrangements.

Importantly, while existing wills remain legally valid, their practical operation may differ from what was originally envisaged. The DIFC Wills Service has already aligned its age-of-majority threshold with the new framework from 2 March 2026.

Guardianship Arrangements May End Earlier Than Expected

The reform also has significant implications for guardianship planning.

Guardianship appointments made through wills, court orders, or notarial instruments generally operate until a child reaches legal adulthood. With adulthood now commencing at 18, guardianship arrangements may terminate up to three years earlier than families anticipated.

For parents who intended ongoing supervision of substantial assets, family businesses, or complex investment portfolios beyond age 18, reliance on guardianship provisions alone may no longer be sufficient.

Instead, additional legal mechanisms such as trusts, phased distribution structures, conditional inheritances, or other succession planning tools may be required to preserve the intended level of oversight.

Trust Structures Require Fresh Review

Trusts and family wealth structures are particularly sensitive to changes in legal capacity rules.

Many trust arrangements are designed around gradual wealth transfers, with trustees retaining control until beneficiaries reach a specified age or milestone. The reduction in the age of majority could affect how beneficiary rights are interpreted, when control shifts, and how trustee obligations are discharged.

Families with significant business holdings, investment portfolios, or cross-border assets should review trust documentation carefully to ensure that distribution ages, trustee powers, and succession objectives remain aligned with their original intentions.

The reform serves as a reminder that even well-drafted structures may require periodic review when the underlying legal framework changes.

Implications for Probate and Estate Administration

The effects of the new law extend beyond future planning and into ongoing probate matters.

Historically, assets held on behalf of minor beneficiaries often remained under court supervision until the beneficiary reached 21. Under the new legal framework, beneficiaries aged 18 and above possess full legal capacity to receive assets, execute documents, and participate directly in probate proceedings.

This could accelerate the administration of estates and reduce the need for guardian involvement in certain cases. Executors and administrators handling ongoing matters should therefore assess whether beneficiaries who have attained 18 years of age are now entitled to receive assets or exercise rights previously deferred until 21.

Beyond Estate Planning: A Wider Economic Impact

The reform is also likely to have broader commercial and economic implications.

Young adults aged 18 to 20 can now independently enter into contracts, manage investments, establish businesses, participate in legal proceedings, and exercise ownership rights without restrictions linked to minority status.

As a result, families involved in family-owned enterprises, investment structures, and entrepreneurial ventures may increasingly involve younger generations in business and wealth management decisions at an earlier stage.

The introduction of court-approved asset management rights from age 15 further reinforces the UAE's broader objective of encouraging financial participation and economic responsibility among younger individuals.

Key Changes at a Glance

Area	Position from June 1, 2026
Age of majority	18 Gregorian years
Court-supervised asset management by minors	Available from 15 Gregorian years with judicial approval
DIFC Wills Service threshold	Updated from 2 March 2026
Existing wills	Remain valid but should be reviewed against the new legal framework
Guardianship arrangements	Generally end at 18 unless alternative legal mechanisms apply

Looking Ahead

Federal Decree-Law No. 25 of 2025 does not invalidate existing estate planning arrangements. However, it fundamentally changes the legal baseline against which those arrangements operate.

For many families, the issue is not whether their wills, trusts, or guardianship instruments remain valid, but whether they will continue to deliver the outcomes originally intended.

The reduction of the age of majority from 21 to 18 may accelerate inheritance rights, shorten guardianship periods, alter trust administration, and bring forward the transfer of wealth and decision-making authority.

As the new framework takes effect, a comprehensive review of existing succession and estate planning arrangements may help families avoid unintended consequences and ensure that their long-term wealth preservation objectives remain protected.

 

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