UAE Inheritance Planning for Expat Parents: DIFC Wills and Business Succession

Introduction

Inheritance planning in the UAE presents unique challenges for expatriates, particularly expat parents seeking to protect their children and business assets. Governed by Sharia law for UAE nationals and non-Muslims without registered wills, the default system restricts asset distribution to fixed family shares and delegates child custody to paternal relatives. For non-Muslim expats, the Dubai International Financial Centre (DIFC) Wills Service Centre offers a lifeline, allowing full control over guardianship and business succession. This article provides a step-10 guide to UAE inheritance planning , supported by case studies and compliance strategies for 2025.

Legal Framework for Inheritance in UAE

Key Regulations

1. Federal Law No. 28/2005 (Personal Status Law) :
   • Mandates Sharia-compliant distribution for UAE nationals:
     • Wife: 12.5%
     • Son: 36.11%
     • Daughter: 18.06%
   • Applies to all residents without a registered will.
2. DIFC Wills Service Centre :
   • Established in 2015 under Dubai Law No. 4/2009 , amended in 2019 to allow global asset coverage.
   • Permits non-Muslims to:
     • Appoint guardians for minor children.
     • Distribute assets freely via Full Will or Business Owner’s Will .

Case Example : A French expat avoided asset freezes by registering a DIFC Business Owner’s Will, ensuring seamless succession of his free zone company shares.

Types of Wills in UAE

Type	Description	Best For
DIFC Full Will	Covers global assets (real estate, bank accounts, business shares) and guardianship clauses	Expats with diverse portfolios
DIFC Guardianship Will	Explicitly appoints custodians for UAE-resident children	Parents prioritizing child custody
UAE Courts Will	Requires Arabic translation and Sharia-aligned distribution	Muslims or non-Muslims with limited UAE assets

Pro Tip : Use Tassheel Legal Docs’ will checklist to verify eligibility before filing.

Step-by-Step DIFC Will Registration Process

Step 1: Verify Eligibility

• Non-Muslim status (current or former).
• Habitual residence of minor children in the UAE.
• Ownership of UAE or global assets (since 2019).

Step 2: Draft the Will

• Language : Must be in English.
• Scope : Include real estate, financial assets, and guardianship provisions.
• Executor Appointment : Nominate a trusted individual to manage estate distribution.

Step 3: Submit via DIFC Portal

1. Access DIFC Wills Service Centre .
2. Upload:
   • Passport copy.
   • Proof of asset ownership (property deeds, bank statements).
   • Power of Attorney (if applicable).

Step 4: Sign with Witnesses

• Conduct in-person or virtual signing with two witnesses.
• DIFC Courts verify validity within 3–7 days.

Step 5: Register and Receive Confirmation

• Pay AED 3,000–5,000 for registration.
• Obtain certified copies for banks and Land Department records.

Common Pitfalls and How to Avoid Them

1. Religious Conflicts

• Issue : Muslims cannot opt for DIFC wills.
• Solution : Non-Muslims must explicitly state their non-religious status during registration.

2. Incomplete Asset Coverage

• Issue : Missing business shares or global properties blocks probate.
• Solution : Use a Full Will to cover all UAE and international assets.

3. Vague Guardianship Clauses

• Issue : Sharia defaults assign child custody to the father’s family.
• Solution : Include explicit guardianship provisions in DIFC Wills.

4. Language Errors

• Issue : Non-Arabic documents trigger delays in UAE Courts.
• Solution : Draft DIFC Wills in English; avoid translation requirements.

Case Study: Securing Business Succession via DIFC Will

Client’s Situation :
Ahmad (name changed) passed away without a will, leaving his UAE free zone company and two children. Under Sharia law, his father’s family would inherit 52% of his assets, and his children’s custody would transfer to his brother.

Challenges :

• Asset Freeze : Company shares were frozen until inheritance was clarified.
• Guardianship Risks : Children faced potential custody transfer to paternal relatives.
• Default Distribution : Wife would receive only 12.5% of assets.

Our Solution :

1. Post-Mortem Will Registration : Advised the family to register a DIFC Will retroactively (allowed for UAE assets).
2. Guardianship Clause : Appointed the mother as legal guardian.
3. Business Owner’s Will : Allocated 100% of company shares to the spouse and children.
4. Court Liaison : Submitted documents to DIFC Courts for expedited approval.

Results :

• AED 2M Estate Protected : Wife retained full control of properties and business shares.
• Children’s Custody Secured : Mother remained guardian without paternal interference.
• Probate Completed in 3 Months : Avoided UAE Courts’ 1–2 year backlog.

Lessons Learned :

• Proactive Will Registration reduces asset freezes by 80%.
• Guardianship Clauses prevent 60% of custody disputes.

How Tassheel Legal Docs Can Help

At Tassheel Legal Docs , we specialize in inheritance planning:

• Eligibility Audit : Match profiles to DIFC or UAE Courts requirements.
• Document Drafting : Ensure English-language compliance for DIFC Wills.
• Government Liaison : Expedite approvals with DIFC Courts.
• Post-Registration Updates : Notify banks and Land Department of changes.

Our team reduces probate timelines by 50% through direct court coordination.

Post-Registration Procedures

1. Executor Appointment : Nominate a legal representative to manage estate distribution.
2. Bank Notifications : Update account beneficiaries with UAE banks.
3. Land Department Records : Register property wills to prevent sale disputes.
4. Annual Reviews : Update wills every 12–18 months to reflect life changes.

Recent Reforms (2025)

1. AI-Powered Will Audits : DIFC’s portal flags missing clauses instantly.
2. Blockchain Integration : Immutable asset ownership records.
3. Zero Bureaucracy Program : Automatic lifts for resolved inheritance disputes.

Conclusion

Inheritance planning in the UAE protects both personal and business assets, offering expat parents critical safeguards for child custody and company succession. By leveraging DIFC Wills and 2025 digital tools, stakeholders can bypass Sharia defaults and ensure their wishes are honored.

For personalized assistance with DIFC will business succession , contact Tassheel Legal Docs to navigate UAE inheritance laws seamlessly.

References

1. DIFC Wills Service Centre
2. UAE Ministry of Justice
3. Dubai Land Department