What Happens to Your UAE Bank Accounts After Death? Essential Guidance for Expatriates

Planning for the future is uncomfortable, but the emotional and financial strain on loved ones can be far greater if key arrangements are not in place. Many expats are unaware that UAE bank accounts do not automatically pass to a spouse or family member when someone dies. Instead, accounts are typically frozen, which can delay access to essential funds and complicate estate matters. A legally recognised will is often the most effective way to prevent these difficulties.

How UAE banks handle accounts after a death

When a bank is notified that an individual has passed away, it is standard practice in the UAE for all accounts in that person’s name to be frozen. This applies even to joint accounts. The freeze stays in place until the bank receives a court order instructing how the funds should be released or distributed. A valid, locally recognised will helps streamline this process, while the absence of one can lead to extended delays.

What if there is no will?

If someone dies without a legally recognised will, UAE courts apply default succession rules.

• For Muslims: Inheritance is generally distributed under Sharia-based principles.
• For non-Muslims: Procedures vary by emirate, and assets may be distributed according to home-country laws -- but only if the required steps were taken in advance and formally recognised by the court.

Without clear planning, families may face unexpected outcomes and difficulty accessing funds during succession procedures.

Why expats should put a UAE-recognised will in place

Expats often hold property, business interests and financial assets in the UAE. Without a will, those assets may not be passed on as intended. Many non-Muslim expats choose to register a will with an approved UAE registry to minimise uncertainty and protect their families. It is also important to consider matters such as account structures, beneficiary designations (where applicable), powers of attorney and guardianship arrangements for minor children.

Key points when drafting a UAE will

When preparing a will, individuals should ensure they:

• Work with a qualified, registered wills draftsman
• Choose the appropriate type of will (single, mirror, property-specific, guardianship, etc.)
• Identify current assets or allow for future growth
• Decide how assets should be distributed
• Appoint an executor
• Name guardians for minor children
• Include any charitable bequests
• Have the will properly witnessed upon signing

Since rules differ by emirate and can evolve, professional legal guidance is essential to ensure a will is valid and effective.

 

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