The Investor’s Guide to Estate Planning for Expats Holding UAE Assets

UAE succession law underwent major reforms on 1 January 2026, affecting expatriates who own property, businesses, or financial assets in the Emirates. The changes clarify the default inheritance framework and introduce new mechanisms for handling estates without a will, making proactive estate planning essential for expats.

Default inheritance rules for non‑Muslim expats

• Under Federal Decree‑Law No. 41 of 2024 on Personal Status, which became effective on 1 January 2026, the statutory distribution for a deceased person who dies without a UAE‑registered will is:

  • 50 % of the estate to the surviving spouse.
  • The remaining 50 % divided equally among children, regardless of gender.
  • If there are no children, the estate passes to parents, then to siblings.

• The default scheme applies automatically to all residents, Muslim or non‑Muslim, and cannot be altered without a registered will.

• For blended families, unmarried partners, or expats with children from previous relationships, the statutory split often diverges sharply from the deceased’s intended distribution.

Key reforms introduced on 1 January 2026

1. Codified default distribution – Replaces the 2005 framework and now applies uniformly across all seven emirates.
2. New treatment of heirless estates – An amendment to the Civil Transactions framework directs that assets of a foreign resident who dies in the UAE with no identifiable legal heirs are transferred to a charitable endowment (waqf) administered by the authorities, rather than remaining frozen in prolonged court proceedings.

If identifiable heirs exist (spouse, children, etc.), the assets may still be frozen while the court verifies the heirs, underscoring the importance of a registered will.

The DIFC and ADJD wills routes

The DIFC Wills and Probate Registry (DWPR) and the Abu Dhabi Judicial Department (ADJD) provide non‑Sharia, common‑law or civil‑law based wills for non‑Muslim expats. Key practical points:

• Joint ownership does not create automatic survivorship. A surviving spouse does not automatically inherit the deceased partner’s share of jointly held Dubai property; the share becomes part of the estate and must pass through probate.
• Bank accounts and titles are frozen on death unless a will is on record, potentially leaving the surviving spouse unable to access funds or manage property for an extended period.
• Guardianship provisions can be included in a full will or as a separate guardianship will. DIFC guardianship coverage applies only to children residing in Dubai or Ras Al Khaimah; families with children in other emirates should verify whether an ADJD‑registered will offers broader coverage.

Aligning UAE estate planning with home‑country obligations

Expats who remain liable for tax or estate matters in their home jurisdiction must ensure that a DIFC or ADJD will works in concert with any existing will abroad. For example, British expats face additional considerations after the 2025 reform to the UK’s non‑domicile rules, which altered how long‑term absence influences inheritance‑tax exposure on worldwide assets. A coordinated approach is required to avoid conflicting provisions and unintended tax consequences.

Implications for investors and business owners

• Business continuity: A frozen bank account or delayed share transfer can disrupt operations precisely when a family is most vulnerable.
• DIFC foundations: When structured appropriately, foundations can provide an extra layer of continuity for business assets and investments, complementing—rather than replacing—a personal will.

Practical steps for expats

1. Draft and register a will with the DIFC Wills and Probate Registry or the ADJD to override the statutory default.
2. Clarify ownership structures for jointly held property and ensure that titles reflect the intended succession plan.
3. Include guardianship provisions if minor children are involved, confirming the jurisdictional coverage needed for their residence emirate.
4. Coordinate with home‑country estate planning to align the UAE will with any foreign will and address cross‑border tax exposure.
5. Consider supplemental structures such as DIFC foundations for business assets to enhance continuity and protect investments from probate delays.

By addressing these points promptly, expatriates can ensure that their UAE‑based assets are distributed according to their wishes and that personal or business affairs remain uninterrupted after death.

Source article: knightsbridge.ae