As the old saying goes, “you can’t take it with you.”

And when it comes to your money, this couldn’t be more true. Eventually, we all must face the grim reality of death, leaving behind our earthly possessions and, ultimately, our wealth. Or as I like to call it, the ultimate financial planning fail.

But fear not! There is a way to ensure that your money continues to grow and provide for your loved ones, even after you’ve bitten the dust (figuratively speaking, of course). How, you may ask?

Introduction

The importance of wills is often overlooked by expatriates, but when moving abroad it's important to consider how your assets will be distributed in the event that something were to happen. Although many non-muslim expats in Dubai are unaware that, without a legally registered will in the UAE, transferring assets after death can be extremely time consuming and costly, not to mention, fraught with legal complexities.

In a podcast with us Cynthia Trench, the Managing Partner of Trench & Associates DMCC, explains how the Civil Transaction Code and Personal Status Law have been amended in 2020, as well as what types of wills can be executed in the UAE in order to protect assets and investments. She also gives advice on how expatriates can make sure their wills are not contested and avoid being misled by financial consultants.

Key take-aways

In the Dubai International Financial Centre (DIFC), you can use your will to pass on assets or property outside the UAE. This makes it a popular choice for expats who want to make sure their estate is managed according to their wishes.

Abu Dhabi wills are registered with the Abu Dhabi Department of Justice (ADJ). The cost of registering an Abu Dhabi will is 950 AED and there is no limit on the value of what you can include in your will. You must have two witnesses present when signing your will and they must sign at the same time as you do.

The Dubai Notary public registers your will along with two witnesses and costs 1,000 AED for registration.

Will Writers and Financial Advisors

The laws in Dubai have changed over the years, and for the better.  Back in 2002, there was no regulation in place and many wills were not enforceable when the person died due to unqualified lawyers in Dubai taking advantage of the situation.

It's important to uphold Sharia Law, where you submit a death certificate, passport copies, and two witnesses. This way, applicants may get an outcome, which is a Sharia succession certificate. Later, to uphold the will you have to file the case at the court of appeal which through uncertain routes may be costly and time consuming.

Sharia inheritance is a method of dividing an estate according to Islamic law. Therefore it is important to hire a verified, certified and expert professional who understands the law to aid in the process.

The DIFC's legal system is very hard to challenge because, according to Cynthia, they have been written by lawyers who know what they're doing and there's no real way to contest. Most beneficiaries not included in the will, challenge the will by stating that you didn't have mental capacity to sign it or were coerced into signing it. To avoid such disputes, Cynthia advises to make sure you have a medical certificate showing that you had the right capacity when formulating and signing the will.

Conclusion

When you make a will, may sure you ask all the right questions. And get in touch with a reputable law firm to see if they can help you draft your will. If you have complicated wills, estate planning that consists of multiple wives and children, or lots of assets spread across different jurisdictions, consider state planning. Hire a consultant in Financial Advisory and Investments in Dubai to structure your financial planning.

Such an important topic, and to learn more about the importance of wills and how they can be drafted, check out our podcast with Cynthia here