The inheritance system in the UAE is relatively complex due to the country’s cultural and legal diversity. For foreigners owning property in the UAE, it is crucial to understand how inheritance laws will apply in the event of their death and what options are available to ensure their assets are transferred according to their wishes.
1. Applicable Law on Inheritance
Generally, Islamic Sharia law governs inheritance matters in the UAE, following a legal system for distributing property among rightful heirs (such as spouses, children, parents, etc.). However, foreigners are allowed to choose the law they wish to apply to the estate of their properties in the UAE.
2. Option 1: Apply Home Country Laws
Foreigners residing in the UAE can choose to apply their home country’s laws for distributing their real estate assets in the event of their death. This must be done through a clear and specific legal will that states that the properties owned in the UAE should be distributed according to the laws of their home country.
- How to Execute:
- Prepare a legal will that complies with UAE laws and register it with the relevant authorities (such as the Personal Status Court or the Will Registry at the DIFC).
- If no will is present, the estate will be distributed according to Islamic Sharia law.
3. Option 2: Apply Islamic Sharia Law
If the foreigner has not specified a legal will or has chosen not to register one, Islamic Sharia law will be applied to the distribution of their real estate assets in the UAE. This means the distribution will follow the specified shares in Islamic law, which may differ from the laws of their home country.
4. Registering the Will in the UAE
To avoid the automatic application of Islamic Sharia law, it is highly recommended that foreigners register a will in the UAE. There are several ways to do this:
- Will Registry at DIFC: This provides a flexible legal means to register wills according to the laws they wish to apply. Wills registered here are recognized and enforceable in UAE courts.
- Personal Status Court: Wills can also be registered here, but they must be written in a manner that complies with UAE laws to ensure acceptance.
5. Property Transfer Upon Death
Once the applicable law for inheritance is determined, the process of transferring ownership to the heirs is supervised by the Land Department in the relevant emirate. If a will exists, it will be executed according to the specified legal steps. If no will is present, Islamic Sharia law will be enforced.
6. Costs and Procedures
Costs and procedures vary depending on the emirate and the type of will (registered at DIFC or in the Personal Status Court). Heirs should expect to pay legal fees and property transfer fees.
Conclusion
Foreigners owning property in the UAE should be aware of the inheritance laws in the country and take steps to ensure their real estate assets are distributed according to their wishes. It is strongly advised to prepare a legal will and register it in the UAE to ensure that the inheritance process proceeds as desired, avoiding any legal complexities that may arise from the automatic application of Islamic Sharia law.