Its Important to know the key differences between Dubai Courts and DIFC Wills to protect your assets and ensure no legal complication after your passing.
Fardeen Imran
Published on October 10, 2024, 15:08:31
A Will and Testament is a legal document that outlines an individual’s wishes regarding the distribution of their property and assets after death. It also appoints an executor, to manage and oversee the estate until all assets are distributed according to the terms of the Will.
An absence of a Will may cause several issues to arise in the death of an expat in the UAE, including the freezing of bank accounts which will prevent access to family members of the deceased, cancellation of visa and residency of the family members of the deceased, issues relating to the custody of children, and a division of assets which may not reflect the true intentions of the testator.
Therefore, UAE Wills can be notarized and registered either with the Dubai Courts or the Dubai International Financial Centre (DIFC) Wills & Probate Registry (WPR). The key distinction between these two institutions lies in their jurisdiction and legal framework.
The choice between these two options depends on the individual’s assets and their preferred legal framework for handling inheritance.
Dubai Courts
As the central hub of the UAE’s onshore legal system, Dubai Courts operate under Shari’ah law, which guides most legal proceedings, including inheritance matters. Wills registered with the Dubai Courts have broad applicability and are recognized across all emirates, ensuring the Will's enforcement throughout the UAE.
Wills registered with the Dubai Courts are an ideal choice for individuals residing in Dubai, with coverage of assets exclusive to the UAE. By choosing to register a Will with the Dubai Courts, individuals can secure comprehensive legal coverage, ensuring that their wishes are upheld after their passing.
The current estimated fee for the attestation of Will from Dubai Courts will be AED 2,200, making it an economical and convenient option.
Dubai International Financial Centre (DIFC) Wills & Probate Registry.
The DIFC, recognized as an independent legal jurisdiction within Dubai, operates under a common law framework rather than Shari’ah law. This allows the DIFC to apply international legal principles, offering greater flexibility and alignment with Western-style legal systems. The DIFC WPR caters specifically to the needs of non-Muslim expatriates who wish to ensure that their assets are distributed according to their own wishes, without being bound by Shari’ah-based inheritance laws.
DIFC Wills have coverage of movable and immovable properties within and outside of the UAE, however, foreign assets may be subject to their own set of laws and regulations as per the jurisdiction.
The registration fees for DIFC Wills at the Dubai International Financial Centre Wills & Probate Registry (WPR) are as follows:
Single DIFC Will: AED 10,000
Set of Mirror DIFC Wills (for a married couple): AED 15,000
DIFC Guardianship Will: AED 5,000
Set of Mirror DIFC Guardianship Wills (for a married couple): AED 7,500
These fees apply to the registration of Wills before a registry officer at the DIFC WPR.
The Choice
When deciding between the Dubai Courts and the DIFC WPR for Will registration, several key factors should be taken into account:
Scope of Assets: If your assets are distributed across multiple jurisdictions, the DIFC is a reliable platform, which provides coverage for properties located within and outside of the UAE.
Religious Background: Your religious beliefs may influence your choice. Non-Muslims often prefer the DIFC due to its alignment with common law principles, allowing for more flexibility in asset distribution.
Legal Certainty: The DIFC offers a higher degree of predictability for non-Muslim expatriates who wish to completely avoid Shari’ah-based asset division. In contrast, the Dubai Courts may enforce Shari’ah laws, regardless of individual preferences, which could lead to unintended distributions of assets.
It is to be noted that the drafting of the Will, either in accordance with Dubai Courts or the DIFC WPR Rules, requires legal expertise, which may incur additional costs, depending upon the jurisdiction chosen and the type of Will.
It is crucial to have a Will which determines the future of your properties, and whether the benefit reaches the intended parties. The stress and complications arising from an absence of a comprehensive Will can severely impact the lives of your loved ones.
With options between the Dubai Courts and DIFC, making an informed choice allows your financial advisor to tailor a legacy strategy that fits your needs; your Will may also be amended as your circumstances change.
Ultimately, selecting the most suitable institution for registering your Will in the UAE requires careful consideration of your specific circumstances, including the legal framework and geographical implications of each option. Taking the time to evaluate these factors can help ensure that your assets are distributed according to your wishes and that your loved ones are protected.
For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels
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