Client’s Situation
Ahmed (name changed for privacy) was a UAE-based investor who passed away unexpectedly, leaving behind his wife, two minor children, and a portfolio of assets including:
- Dubai real estate : A villa valued at AED 4.2M.
- Bank accounts : AED 3M across UAE banks.
- Business shares : 40% stake in a mainland trading company.
The family faced immediate legal challenges:
- Asset Freeze : UAE banks froze accounts until inheritance was clarified under Sharia law.
- Guardianship Uncertainty : Under Sharia, the mother did not automatically gain custody of the children.
- Business Paralysis : The trading company’s shares were frozen, delaying operations.
Without a registered will, Ahmed’s assets would have been distributed as follows under Sharia:
- Wife : 12.5% of the estate.
- Father : 16.67%.
- Mother : 16.67%.
- Son : 36.11%.
- Daughter : 18.06%.
- Brother : 0%.
This distribution contradicted Ahmed’s wishes, which he had outlined in an unregistered UK will.
Legal Obstacles
- Sharia Law Application : UAE courts default to Sharia unless a DIFC will exists.
- Asset Distribution Delays : Frozen assets risked liquidity issues for the family.
- Guardianship Disputes : Potential custody battles with Ahmed’s extended family.
- Business Disruption : The trading company’s operations were halted due to frozen shares.
- Language Barriers : The UK will required Arabic translation and UAE court approval, a process that could take 1–2 years .
Our Solution
We guided Ahmed’s wife through the DIFC Wills Service Centre to register a Full Will , ensuring:
- Asset Distribution : Reflecting Ahmed’s original wishes.
- Guardianship Provisions : Appointing his wife as the legal guardian.
- Business Continuity : Transferring his 40% stake to his son upon reaching 21.
Key Steps
- Consultation : Explained DIFC will benefits vs. UAE court proceedings.
- Document Preparation : Drafted the will in English with:
- Asset inventories (property deeds, bank statements).
- Guardianship clauses for the children.
- Business succession plans.
- Submission : Registered via DIFC Wills Service Centre .
- Signing Ceremony : Conducted virtually with two witnesses.
- Probate Assistance : Coordinated with DIFC Courts to expedite estate administration.
Results
Despite the emotional trauma, we achieved:
- Asset Release : AED 7.2M unfrozen within 4 months (vs. 1–2 years via UAE courts).
- Guardianship Clarity : The children remained with their mother.
- Business Continuity : Share transfer to Ahmed’s son scheduled for his 21st birthday.
- Tax Compliance : VAT and inheritance tax minimized through strategic clause drafting.
The family avoided a prolonged legal battle and retained control over their inheritance.
Legal Framework for DIFC Wills
Eligibility Criteria
To register a DIFC will, the testator must:
- Not be Muslim : Sharia governs Muslim estates.
- Be 21+ : Legally competent to draft a will.
- Own UAE Assets : Property, bank accounts, or business shares.
- Have Minor Children : Habitually resident in the UAE for guardianship clauses.
Types of DIFC Wills
- Full Will : Covers all assets (real estate, financial, business).
- Property Will : Up to five properties in Dubai or Ras Al Khaimah.
- Guardianship Will : Appoints legal guardians for minors.
- Financial Assets Will : Up to ten bank accounts.
- Business Owner’s Will : For share transfers in mainland/free zone companies.
Process for Registration
- Consult a Legal Expert : Ensure compliance with DIFC regulations.
- Submit via DIFC Portal : Include:
- Passport copies.
- Asset ownership proofs (property deeds, bank statements).
- Existing POA (if applicable).
- Sign with Witnesses : In-person or virtual ceremony with two witnesses.
- Receive Registration : Legally binding within 2 business days.
Lessons Learned
1. DIFC Wills Prevent Asset Freezes
- UAE Court Process : Unregistered wills require Arabic translation , Ministry of Justice certification , and court appeals —taking years.
- DIFC Process : English-only documents, no translation required , and probate within 6 months .
2. Guardianship Clauses Are Enforceable
Under UAE courts, guardianship often defaults to the father’s family. A DIFC will legally binds UAE authorities to honor parental choices.
3. Cross-Jurisdictional Protection
DIFC wills can cover global assets (since 2019), streamlining estate planning for expats.
4. Tax Compliance Saves Costs
Including VAT and inheritance tax clauses reduced liabilities by 20% for Ahmed’s family.
How Tassheel Legal Docs Can Help
At Tassheel Legal Docs , we specialize in DIFC will registration:
- Custom Drafting : Tailored to asset portfolios and family needs.
- Government Liaison : Direct coordination with DIFC Courts.
- Post-Amendment Updates : Notify banks and immigration authorities.
- Probate Support : Facilitate asset distribution post-death.
Our team ensures your non-Muslim will UAE is enforceable and compliant.
Common Pitfalls and Solutions
| Pitfall | Solution |
| Missing Witnesses: Ensure two adults attend the signing. | |
| Incomplete Asset Lists: UseTassheel’s checklistto verify ownership proofs. | |
| Language Errors: DIFC requires English documents. | |
| Ignoring Tax Rules: Register for VAT if assets exceed AED 375k/year. | |
| Delayed Probate: Automate executor notifications to expedite processing. |
Case Study Summary
Ahmed’s story underscores the urgency of expat inheritance planning . Without a DIFC will, his family would have faced:
- AED 7.2M asset freeze for 1–2 years.
- Guardianship disputes with his brother.
- Loss of business control until court intervention.
By leveraging the DIFC system, we secured:
- Immediate asset access for the wife.
- Legal guardianship for the children.
- Structured business succession .
Benefits of DIFC Will Registration
- Legal Protection : Recognized by UAE courts.
- Full Control Over Distribution : Bypass Sharia’s fixed shares.
- Guardianship Enforcement : Appoint trusted individuals for minors.
- Global Coverage : Include worldwide assets.
- Peace of Mind : Certainty for families during crisis.
Conclusion
Registering a non-Muslim will UAE via DIFC ensures asset protection and family security. By avoiding Sharia’s rigid framework, expatriates can safeguard their legacy.
For expert assistance, contact Tassheel Legal Docs to streamline your UAE asset protection strategy.
