Ask Gulf News: Can you legally pay a relative a lifetime annuity in the UAE?

Question: I have a relative whom I want to pay for her a periodic life annuity until her death. Is it possible as per UAE law and what are its conditions? Please advise. 

Answer: You can legally undertake to pay your relative a periodic life annuity including but not limited to (education, treatment, or maintenance) without consideration according to articles (948), (949), (950), (951) & (952) of the Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law. For such life annuity to be valid and enforceable in the UAE, the following rules should be considered:

1. The obligation for an annuity may be for the life of the obligor (the person paying), the obligee, (the person receiving) or any other person.

2. The obligation shall be made in writing.

3. The obligation shall be extinguished by the death of the obligor, or his/ her bankruptcy or insolvency. 

4. If the obligor fails to fulfil the obligation, the obligee may seek performance of the contract.

5. If the obligor died before the obligee, the obligee shall be entitled to a portion of the annuity that is proportionate to the period that has elapsed until the death of the obligor, and may claim it from the estate by way of a bequest, unless otherwise agreed.