Real Estate

UAE Property Inheritance Rules: What You Need to Know

UAE Property Inheritance Rules: What You Need to Know

Overview of UAE Inheritance Law

In the UAE, inheritance law is governed by Personal Status, Civil Transactions, and Sharia legislation. These rules dictate how assets are distributed after a person’s death.

Table of Contents

Understanding Sharia Law in Inheritance

Sharia Law is the religious law of Islam and is based on the Quran and the teachings of the Prophet Muhammad. It is the UAE’s primary law source and plays a significant role in inheritance law. Under Sharia Law, a deceased person’s assets are divided among their heirs according to specific rules. These criteria change according to the deceased’s relationship with their heirs.

Application of Civil Transactions Law

The Civil Transactions Law is a federal law governing the UAE’s asset distribution. It outlines the rules and regulations for distributing assets, including the rights of heirs and the process for distributing assets. Article 17 of the Civil Transactions Law states that the law of the deceased shall govern inheritance at the time of their death.

Differences in Inheritance for Muslims and Non-Muslims

Inheritance laws in the UAE differ for Muslims and non-Muslims. For Muslims, Sharia Law governs the distribution of assets, while non-Muslims can choose to have their assets distributed according to their home country’s laws or the laws of the UAE. Non-Muslims can also choose to have their assets distributed according to Sharia Law.

Here are some key points to keep in mind:

  • Sharia Law is the UAE’s primary law source and plays a significant role in inheritance law.
  • The Civil Transactions Law outlines the rules and regulations for the distribution of assets in the UAE.
  • Inheritance laws in the UAE differ for Muslims and non-Muslims.
  • Non-Muslims can choose to have their assets distributed according to the laws of their home country or the UAE.

Inheritance Rules for Muslims

Muslims in the UAE are subject to Sharia-based rules regarding inheritance. Sharia law is a set of principles derived from the Quran and the Sunnah, which govern all aspects of a Muslim’s life, including inheritance.

Sharia Guidelines for Muslim Heirs

Under Sharia law, the distribution of assets among heirs is governed by guidelines. The guidelines are as follows:

  • The priority is to pay off any outstanding debts of the deceased.
  • The second priority is to distribute the assets among the heirs according to their shares as prescribed by Sharia law.
  • The third priority is to distribute the remaining assets among the heirs as per the will of the deceased, provided that the will does not violate any Sharia principles.

Distribution of Assets Among Muslim Heirs

The distribution of assets among Muslim heirs is based on the concept of ‘Faraid,’ which means dividing assets among heirs according to Sharia principles. The idea of Faraid is based on the principle that the deceased’s assets are divided among their heirs in a fair and just manner.

The distribution of assets among Muslim heirs is based on the following principles:

  • The deceased’s assets are split among their heirs by Sharia law.
  • The heirs’ shares are decided by their link to the deceased and gender.
  • Male heirs receive a higher part of the assets than female heirs.

Forced Heirship and Sharia Principles

Sharia law recognizes the concept of forced heirship, which means that certain heirs are entitled to a fixed share of the deceased’s assets. The forced heirs are the spouse, children, and parents of the deceased.

Under Sharia law, the forced heirs are entitled to the following shares of the assets:

  • The spouse is entitled to one-eighth of the assets if the deceased has children and one-fourth if the deceased has no children.
  • The children are entitled to two-thirds of the assets if the deceased has no spouse and one-half if the deceased has a spouse.
  • The parents are entitled to one-sixth of the assets if the deceased has no children or spouse.

In conclusion, Muslims in the UAE are subject to Sharia-based rules regarding inheritance. The distribution of assets among Muslim heirs is based on the concept of Faraid, which is designed to ensure a fair and just distribution of assets among heirs. Sharia law recognizes the concept of forced heirship, which means that certain heirs are entitled to a fixed share of the deceased’s assets.

Inheritance Rules for Non-Muslims

In the UAE, inheritance laws for non-Muslims are different from those for Muslims. Non-Muslims can opt for their home country’s laws to be applied to their assets, while Muslims are subject to Sharia law. Here are some essential things about inheritance rules for non-Muslims in the UAE.

Opting Out of Sharia Law

Non-Muslims have the option to choose whether they want their assets to be divided according to Sharia law or their home country’s laws. This means that non-Muslims can choose to have their assets divided according to the laws of their home country rather than Sharia law. However, if a non-Muslim owns real estate in the UAE, then UAE law will apply to the will.

Creating a Will Under UAE Law

Non-Muslims can create a will under UAE law, which will be recognized by the authorities in the UAE. It is important to note that if a non-Muslim dies without a will, then their assets will be divided according to Sharia law.

It is recommended that you seek the advice of a legal professional to create a will under UAE law. The UAE Civil Law must draft and register the will with the relevant authorities.

Legal Implications for Non-Muslim Expatriates

For non-Muslim expatriates, some unique aspects of UAE inheritance law offer flexibility. The following points are relevant for non-Muslim expatriates:

  • Non-Muslim expatriates can choose to have their assets divided according to the laws of their home country rather than Sharia law.
  • Non-Muslim expatriates who own real estate in the UAE will have their assets divided according to UAE law.
  • Non-Muslim expatriates with their domicile, place of residence, or place of work in the Emirate of Abu Dhabi will be subject to the requirements of the newly issued ‘Personal status for non-Muslims in the Emirate of Abu Dhabi.’
  • If a non-Muslim expatriate dies without a will, then their assets will be divided according to Sharia law.

It is essential for non-Muslim expatriates to understand the implications of UAE inheritance law and to Seek the assistance of a legal professional while creating a will or dealing with inheritance matters.

Wills and Estate Planning

Estate planning and drafting a will are crucial when protecting assets and ensuring their distribution according to the owner’s wishes after death. In the UAE, the inheritance laws are governed by Islamic Shariah law, which means that the assets will be distributed according to Shariah law unless the owner has made a will recognized by the UAE courts.

Drafting a Will in the UAE

Drafting a will in the UAE is crucial for non-Muslim expats, as it allows them to distribute their assets as per their wishes. Here are some factors to consider when drafting a will in the UAE:

  • The will must be in writing, signed by the testator, and witnessed by two individuals who are not beneficiaries.
  • The will must be registered with the DIFC Wills and Probate Registry or the Abu Dhabi Judicial Department.
  • The will must clearly state the assets the owner wishes to bequeath and to whom.
  • The will must name an executor responsible for distributing the assets according to the will’s instructions.

Registration of Wills with DIFC Wills and Probate Registry

The DIFC Wills and Probate Registry is a government entity that allows non-Muslim expatriates to register their wills according to their wishes. Here are some things to keep in mind when registering a will with the DIFC Wills and Probate Registry:

  • The will must be registered with the DIFC Wills and Probate Registry to be recognized by the UAE courts.
  • The registration process is straightforward; the owner can register their will in English or Arabic.
  • The registration fee is reasonable, and the registration is valid for five years.
  • The DIFC Wills and Probate Registry offers a secure and reliable way to ensure the owner’s wishes are respected and followed.

Guardianship and Custody in Wills

Guardianship and custody are essential aspects to consider while drafting a will in the UAE. Here are some points to keep in mind:

  • The will can designate a guardian for minor children, who will be responsible for their care and upbringing in the event of the owner’s death.
  • The will can also name a custodian responsible for managing the assets bequeathed to minor children until they reach the age of majority.
  • The will can specify the conditions under which the guardian or custodian will be appointed and removed.
  • The will can also specify the powers and responsibilities of the guardian or custodian.

In conclusion, estate planning and drafting a will are essential for protecting assets and ensuring their distribution according to the owner’s wishes after death. Non-Muslim expatriates must register their wills with the DIFC Wills and Probate Registry to ensure their wishes are respected and followed. The will must also name a guardian and custodian for minor children and specify their powers and responsibilities.

Legal Procedures Post-Death

After the death of a person in the UAE, specific legal procedures must be followed to distribute the assets and handle other financial matters. Here are some of the key steps involved:

Probate Process and Asset Distribution

  • The probate process is the legal process of determining the validity of a will and distributing the deceased’s assets according to their wishes. If there is no will, the distribution of assets will be based on the UAE’s inheritance laws.
  • The executor of the will or the deceased’s legal heirs may seek a probate grant from the Dubai Courts. This will give them the legal authority to distribute the deceased’s assets.
  • In the event of someone’s passing, their assets will be distributed following either the instructions outlined in their will or by the laws of inheritance in the UAE. Distributing these assets can be complex and may require the assistance of legal professionals to ensure that everything is done accurately and correctly.

Clearance of Debts and Financial Rights

  • Before the deceased’s assets can be distributed, any outstanding debts and financial obligations must be cleared. This includes funeral expenses, outstanding loans, and other financial obligations.
  • The executor of the will or the legal heirs of the deceased is responsible for clearing these debts and obligations. If there are not enough assets to cover these debts, the heirs may be held personally liable for the outstanding amounts.

Handling of Bank Accounts and Properties

  • The deceased’s Bank accounts and other financial assets will be frozen until the probate process is complete and the assets are distributed.
  • The executor of the will or the legal heirs of the deceased will need to provide the necessary documentation to the bank to unfreeze the accounts and access the funds.
  • Properties owned by the deceased will also need to be transferred to the legal heirs or sold to cover outstanding debts and obligations.

In inheritance-related disputes, it is advisable to seek legal advice to ensure the process is carried out correctly and by the law.

Rights of Specific Heirs

In UAE, inheritance laws are governed by Sharia principles and enforced by the Personal Status Law. The law specifies predetermined shares for specific heirs, prioritizing their inclusion. The following subsections describe the rights of particular heirs in inheritance.

Spousal Rights in Inheritance

The surviving spouse, male or female, is entitled to inherit a share of the deceased spouse’s property. The share depends on whether there are any children or other heirs. The surviving spouse is entitled to the entire estate if no children or other heirs exist. If there are children or other heirs, The surviving spouse is entitled to a share of the estate. as follows:

  • The surviving spouse is entitled to one-eighth of the estate if the deceased had children.
  • If the deceased had no children but had parents, the surviving spouse is entitled to one-fourth of the estate.
  • The surviving spouse is entitled to half of the estate if the deceased did not leave any children or parents.

Children’s Inheritance and Proof of Parentage

By Sharia principles, children are entitled to inherit from their parents’ estate. The share of inheritance depends on the number of children and whether there are other heirs. If the deceased had no children, the inheritance passes to the deceased’s parents or siblings.

Children must prove their parentage to inherit from their parent’s estate. This can be done through a birth certificate or other legal documents.

Inheritance Shares for Male and Female Descendants

According to Sharia principles, male descendants inherit a larger estate share than female descendants. Specifically, a male shall have the share of two females in the inheritance. For example, if the deceased had two sons and two daughters, the sons would inherit two-thirds of the estate, and the daughters would inherit one-third.

It is important to note that inheritance laws in the UAE may vary depending on the religion of the deceased and the heirs. Non-Muslim expatriates can make a will under the laws of their home country to distribute their assets.

International and Expatriate Considerations

Inheritance for Foreigners in the UAE

Foreigners who own property in the UAE are subject to the country’s inheritance laws. The laws are based on Sharia law, which can be difficult for non-Muslim foreigners to navigate. However, non-Muslim foreigners are allowed to create a will and split their possessions according to their desires. Civil and Personal Law will apply if a foreign national dies without leaving a will.

Inheritance Across Different Nationalities

Inheritance laws in the UAE vary depending on the nationality of the deceased. If the deceased is a citizen of the United Arab Emirates, the UAE competent court will have jurisdiction over the estate. If the deceased is a foreigner, the inheritance laws of their nationality country may apply.

Applicable Laws for Expatriates and Foreign Residents

Expatriates and foreign residents in the UAE should consider the applicable inheritance laws. Understanding which succession laws apply is critical in the UAE, given its many legal jurisdictions and the varying applicable laws depending on nationality, religion, and asset location.

Some important points to consider include:

  • Non-Muslim foreigners can draft a will and divide their property according to their wishes.
  • The inheritance laws in the UAE are based on Sharia law, which can be difficult for non-Muslim foreigners to navigate.
  • Inheritance laws in the UAE vary depending on the nationality of the deceased.
  • If the deceased is a citizen of the United Arab Emirates, the UAE competent court will have jurisdiction over the estate.
  • If the deceased is a foreigner, the inheritance laws of their nationality country may apply.
  • Expatriates and foreign residents should determine which succession laws apply to them before making any decisions or taking any steps.

Legal Support and Dispute Resolution

In the UAE, property inheritance rules can be complex and confusing. It is vital to get legal advice. And understand the inheritance legislation to ensure the process goes smoothly. Here are some ways to navigate legal support and dispute resolution in the UAE:

Seeking Legal Advice from UAE Lawyers

Regarding property inheritance rules in the UAE, seeking legal advice from experienced lawyers is always advisable. They can clarify the UAE inheritance law provisions, including the UAE Personal Status Law 2005 and the UAE Civil Code 1985. A lawyer can also help individuals understand their rights and obligations as heirs and guide them through inheritance.

Navigating Inheritance Disputes in Dubai Courts

Inheritance disputes can arise when a person dies without a will or when there are disagreements among heirs. In such cases, seeking legal support and resolving the conflict through the Dubai courts is essential. The Dubai courts have established a specialized court to examine inheritance disputes involving Muslims and non-Muslims. The court can help resolve disputes and distribute assets by the UAE inheritance laws.

Understanding UAE Inheritance Legislation

Understanding the UAE inheritance legislation is crucial to navigating property inheritance rules. The UAE inheritance laws apply to Muslims and non-Muslims and are governed by the UAE Personal Status Law 2005 and the UAE Civil Code 1985. These statutes lay forth the norms and restrictions for the distribution of assets in the UAE, including the rights of heirs and the process for distributing assets.

To summarize, seeking legal advice from UAE lawyers, navigating inheritance disputes in Dubai courts, and understanding UAE inheritance legislation are essential steps to ensure a smooth inheritance process in the UAE.

Frequently Asked Questions

How are inheritance matters handled for expats in the UAE?

  • Non-Muslim expats can choose to have their home country’s laws applied to their inheritance matters.
  • Muslim expats will have their inheritance matters handled according to Sharia law.

What changes have been made to the UAE inheritance laws recently?

  • In September 2020, the UAE introduced changes to its inheritance laws to encourage more people to lay down roots in the country and bolster foreign investment.
  • The changes allowed non-Muslim expats to have their home country’s laws applied to their inheritance matters.
  • The changes also allowed expats. Foreigners with real estate investments in the UAE declare in their will which legislation they want to apply to distribute their UAE assets.

How does Sharia law affect property inheritance for Muslims in the UAE?

  • Sharia law is the primary source of inheritance legislation in the UAE.
  • Sharia law applies to the deceased’s assets located in the UAE in the absence of a will.
  • Sharia law outlines a specific distribution of inheritance among the deceased’s legal heirs, which varies depending on the heir’s relationship with the deceased.

What is the process for property inheritance in Dubai specifically?

  • Matters of inheritance come before one or more judges hear the Dubai courts.
  • The Dubai courts will apply Sharia law to the inheritance matters of Muslim nationals.
  • The Dubai courts will apply the law of the deceased’s home country to the inheritance matters of non-Muslim expatriates, provided the deceased has specified this in their will.

Who qualifies as a legal heir under UAE inheritance laws?

  • Legal heirs under UAE inheritance laws include the deceased’s spouse, children, parents, and siblings.
  • The distribution of inheritance among legal heirs varies depending on the heir’s relationship to the deceased and the presence of other legal heirs.

What occurs when an expatriate dies without a will in the UAE?

  • If an expatriate dies without a will in the UAE, their assets will be distributed according to Sharia law.
  • The distribution of assets will follow a specific distribution among legal heirs, which varies depending on the heir’s relationship to the deceased.
  • Non-Muslim expats who die without a will in the UAE will have their assets distributed according to the law of their home country.

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مؤسّس منصة الشرق الاوسط العقارية

أحمد البطراوى، مؤسّس منصة الشرق الاوسط العقارية و منصة مصر العقارية ،التي تهدف إلى تبسيط عمليات التداول العقاري في الشرق الأوسط، مما يمهّد الطريق لفرص استثمارية عالمية غير مسبوقة

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