Dubai: Do you want to make your will but are unsure of the process as well as the UAE's laws governing the distribution of assets after an individual's death? Ammendments to the Personal Status Code and the Civil Law announced on November 7, 2020, give the expatriates living in the UAE the option to choose the law that would be applied to their inheritance in order to ensure the stability of the financial interests of the foreign investors in the country.
What do the changes mean?
The new changes stipulate that inheritance would be dealt with as per the nationality of the deceased person at the time of his death. As for the general terms of the will and other post-mortem terms, they would be dealt with according to the law of the country specified in the will. If that condition is not specifically mentioned in the will, the law of the country of nationality the deceased person at the time of his death will be applied.
For an expatriate’s will involving their real estate property in the UAE, the UAE laws will be applied.
Why do you need to make a will?
In the absence of a will, in the case of expatriates, the law would be applied based on the country of their citizenship.
This is why it is important to draft and register a will, which you can do in the UAE at the Abu Dhabi courts as well as Dubai International Financial Centre (DIFC) Courts. With the recent restrictions on movement as precautionary measures were implemented against COVID-19, DIFC Courts also offered additional will registration services online.
Shannon Herriot, Manager and Senior Compliance Officer, DIFC Courts Wills Service Centre, spoke to Gulf News about what you need to be aware of when drafting your will and how you can do so.
What is right of survivorship?
When jointly owned property includes a right of survivorship, the surviving owner automatically receives the dying owner's share of the property.
Have the conversation
Thinking of death can be uncomfortable, to say the least. Preparing for it, then, could lead to much more discomfort. However, having prepared for matters after your death can lift a lot of stress off your shoulders.
“Many people feel uncomfortable when it comes to writing or registering their wills, but the point to understand is that the will is not for you. Your loved ones are not required to do guesswork on what your wishes were, or to go through lengthy and costly court procedures,” Herriot said.
“We would always suggest starting the process by having a conversation with your family members, even if it can feel uncomfortable. Property, shares, bank accounts, cars, jewellery — all need to play a role in taking care of tomorrow and securing this future,” she added.
Many people feel uncomfortable when it comes to writing or registering their wills, but the point to understand is that the will is not for you. Your loved ones are not required to do guesswork on what your wishes were, or to go through lengthy and costly court procedures.
Do you need to be a UAE resident?
No, as long as you have assets in the UAE or have minor children living with you in the UAE, you can register a will. You can also include your assets from outside the UAE within this will.
Different types of wills
There are different types of wills available through the DIFC Courts Wills Service:
1. A Full Will, which encompasses all assets and guardianship provisions.
2. A Property Will, which can apply for up to five properties in the UAE.
3. A Guardianship Will, which appoints both interim and permanent guardians for children.
4. A Financial Assets Will, which applies specifically to bank and brokerage accounts; and
5. A Business Owners Will, which applies to free zone or UAE onshore companies
Online registry
Property wills, business owners wills and financial assets wills already had a virtual registry at DIFC. The courts have now started an online service for Full wills.
“The registration of Full wills happens via video conferencing, enabling the service to be accessed remotely from your smartphone, tablet or desktop devices and from the comfort of your home. The system allows the Testator and two witnesses to join in on the video conferencing call from different locations, and further allows an approved Will to be directly uploaded on the system and to affix electronic signatures,” Herriott said.
How do I begin the process?
The first step is to reach out to a legal practitioner registered with DIFC Courts, who can draft your will following the basic requirements as laid out by the UAE law.
This is a crucial step, because if you do not fulfill the basic legal requirements, you will would not be enforceable.
You can do so, by clicking here.
Drafting the will is the most detailed part of the process, as you would need to select your beneficiaries, choose the executor of your will, appoint a guardian for underage children and be specific about who gets what. This is another reason you should consider getting a legal expert to guide you through the process.
Once you have drafted the will, you would then need to book an appointment online or via the DIFC Wills mobile app, which is available on Apple AppStore and Google PlayStore.
You would then need to make the necessary payments in order to go ahead with the registration.
Payment
The cost of your will registration can vary depending on the type of will. Also, single wills – made for an individual – can cost less compared to a mirror will – which a couple can opt for. Mirror wills are virtually identical wills where one person in a couple leaves their estate to the other in the event of their passing away.
This is the cost of wills as listed by the DIFC Wills Service Centre:
Full Will
(covering all movable and immovable assets)
Single Will: Dh10,000
Mirror Wills: Dh15,000
Guardianship Will
(covering guardianship provisions for minors below the age of 21)
Single Will: Dh5,000
Mirror Wills: Dh7,500
Property Will
(covers shares in up to 5 real estate properties; can be registered in the DIFC Wills Service Centre office or via Virtual Registry*)
Single Will: Dh7,500
Mirror Wills: Dh10,000
Business Owners Will
(covers shares in up to 5 different companies; can be registered in the DIFC Wills Service Centre office or via Virtual Registry*)
Single Will: Dh5,000
Mirror Wills: Dh7,500
Financial Assets Will
(covers shares in up to 10 different bank accounts; can be registered in the DIFC Wills Service Centre office or via Virtual Registry*)
Single Will: Dh5,000
Mirror Wills: Dh7,500
Registering the will
At the registration hearing, which is now being done online, you would need to be present along with two witnesses.
You would need following documents during this process:
• Official IDs of the two witnesses
• Your unsigned draft will
• Your Emirates ID, passport and proof of payment.
Once the details have been reviewed, all parties will be able to affix electronic signatures to complete the process.
How long will the process take?
The registration of a Will in person at the DIFC Wills Service takes approximately 45 minutes to one hour.
