SJP Estate planning
When you die without a Will, the law decides who inherits what and in what proportions.
Often, these rules do not achieve what the person would actually have wanted at their death. Having a well-constructed Will in place ensures that the those that you leave behind are provided for and that the right people who you know and trust are in control of the process.
The truth is that dying without a Will can make what is already a difficult time a lot harder for loved ones and particularly so when your assets are split across different countries and jurisdictions.
The importance of a Will and temporary guardianship for expats in the UAE
Living as an expatriate in the UAE comes with a myriad of opportunities, but it also brings specific legal considerations that are crucial for the protection of your family and assets. Creating a Will and guardianship plans is essential for protecting your family and assets.
At St. James's Place, we understand the complexity of navigating the UAE’s legal system, particularly for expats who may not be fully aware of how local laws affect their estate planning. By creating a Will, you not only ensure your assets are distributed according to your wishes but also guarantee the well-being of your children with a plan for guardianship, should something happen to you.
How we can help
Most people recognise they need a Will but simply don’t do anything about it, always putting it off to another day and a significant number of individuals die without one in place.
Many people put Will Writing into the “I’ll do that later” or the “That’s too difficult” list. We aim to make the process of writing a Will a seamless and simple one – offering a full Estate Planning Service.
Do not let a court decide who will look after your children. Be responsible and ensure that both temporary and permanent guardians are appointed.
The creation of wealth is a goal many aspire to. However, when it comes to providing for successive generations, the protection of assets via wealth guardianship is non-negotiable.
Create an Enduring Power of Attorney to make sure that the right people take care of your finances if you don’t have the capacity to.
Appointing guardians
Do not let a court decide who will look after your children. Be responsible and ensure that both temporary and permanent guardians are appointed.
Estate planning and family protection
The creation of wealth is a goal many aspire to. However, when it comes to providing for successive generations, the protection of wealth is important.
Enduring Powers of Attorney
Create an Enduring Power of Attorney to make sure that the right people take care of your finances if you don’t have the capacity to.
Advice relating to a Will, guardianship and Power of Attorney, involves a service that is separate and distinctive to those offered by St. James’s Place.
Why you need a Will as an expat in the UAE
Unlike many Western countries, the UAE does not have long standing established processes for guardianship of minors and asset distribution without a registered Will. Until 2022, Sharia law was applied to deal with the inheritance of non-Muslim expats. While recent legislation aims to align with expat interests, its implementation remains slow due to bureaucratic challenges.
Without a Will, your children may be placed in local custody, and assets may be distributed according to local laws—often in ways that don't align with your preferences. This process can be lengthy, potentially reducing asset value and causing financial strain for loved ones. Drafting and registering a local Will is the best way to avoid these complications.
Key reasons to consider drafting a Will as an expat in the UAE include:
-
Asset distribution
Without a Will, the local courts will distribute your assets under the local laws applying to expats. This means your assets will go to your spouse, your children or closest living relative. Identifying and proving who the beneficiaries are is a long and burdensome process which takes around six months in the best-case scenario, followed by another 6 months for the court to distribute assets.
-
Guardianship of children
Establishing temporary guardianship is essential for parents. Without a guardianship plan, your children could be placed into state custody until permanent guardianship is decided, potentially causing emotional distress during an already difficult time.
-
Efficiency in probate
A Will speeds up the legal process after death, significantly reducing the time and effort your loved ones will spend navigating UAE courts.
-
Avoiding unintended consequences
Without a clear Will, complex inheritance laws and judicial interpretations may cause complications and unexpected surprises for your family, especially if they reside abroad.
Without a Will, the local courts will distribute your assets under the local laws applying to expats. This means your assets will go to your spouse, your children or closest living relative. Identifying and proving who the beneficiaries are is a long and burdensome process which takes around six months in the best-case scenario, followed by another 6 months for the court to distribute assets.
Establishing temporary guardianship is essential for parents. Without a guardianship plan, your children could be placed into state custody until permanent guardianship is decided, potentially causing emotional distress during an already difficult time.
A Will speeds up the legal process after death, significantly reducing the time and effort your loved ones will spend navigating UAE courts.
Without a clear Will, complex inheritance laws and judicial interpretations may cause complications and unexpected surprises for your family, especially if they reside abroad.
Muslim Wills vs Non-Muslim Wills
One of the most important distinctions in estate planning in the UAE is the difference between Muslim and non-Muslim Wills.
One significant update under the new expats law is that Muslim expatriates, can now elect between applying Sharia law or the law applying to expats. This means that Muslims who are not citizens of the UAE can now elect out of the predefined shares and guardianship provisions mandated by Sharia law.
The new expats law allows for more flexibility in how assets are distributed. By drafting and registering a Will, non-Muslims and Muslims who are not UAE citizens can elect for:
- Free distribution: Choose beneficiaries freely, without adhering to predefined shares under Sharia law.
- Foreign law application: They may request that the laws of their home country apply to their estate.
- Guardianship flexibility: Non-Muslim Wills also allow for the designation of a guardian for children, providing greater certainty for parents living abroad.
ADGM and DIFC Will: tailored for expats
The UAE offers two main legal jurisdictions for the registration of Wills for non-Muslims: the Abu Dhabi Judicial Department (ADJD) and the Dubai International Financial Centre (DIFC). These jurisdictions provide expatriates with options for estate planning that cater specifically to their needs.
-
ADJD Wills
The ADJD offers a robust framework for non-Muslims expats and Muslims who are not citizens of the UAE to register their wills, ensuring that their estate is managed in accordance with their wishes.
- Comprehensive coverage: ADJD Wills allow you to cover assets not just in Abu Dhabi but across all seven emirates.
- Guardianship provision: ADJD offers the possibility to nominate guardians for minor children, providing peace of mind for expat families.
- Secure and recognised: ADJD wills are legally recognised across the UAE, offering a secure and streamlined process.
- Comprehensive coverage: ADJD Wills allow you to cover assets not just in Abu Dhabi but across all seven emirates.
-
DIFC Wills
The DIFC provides another option for non-Muslims to register their Wills. Non-Muslims only can avail themselves of the Wills services offered by the DIFC.
- Flexible asset coverage: DIFC Wills allow you to cover assets in Dubai, as well as assets outside the UAE if specified.
- Streamlined process: The DIFC Wills and Probate Registry is known for its user-friendly process and offers a fast, straightforward way to register your Will.
- International recognition: DIFC Wills are also respected internationally, offering added assurance for expats with global assets.
- Flexible asset coverage: DIFC Wills allow you to cover assets in Dubai, as well as assets outside the UAE if specified.
The ADJD offers a robust framework for non-Muslims expats and Muslims who are not citizens of the UAE to register their wills, ensuring that their estate is managed in accordance with their wishes.
- Comprehensive coverage: ADJD Wills allow you to cover assets not just in Abu Dhabi but across all seven emirates.
- Guardianship provision: ADJD offers the possibility to nominate guardians for minor children, providing peace of mind for expat families.
- Secure and recognised: ADJD wills are legally recognised across the UAE, offering a secure and streamlined process.
The DIFC provides another option for non-Muslims to register their Wills. Non-Muslims only can avail themselves of the Wills services offered by the DIFC.
- Flexible asset coverage: DIFC Wills allow you to cover assets in Dubai, as well as assets outside the UAE if specified.
- Streamlined process: The DIFC Wills and Probate Registry is known for its user-friendly process and offers a fast, straightforward way to register your Will.
- International recognition: DIFC Wills are also respected internationally, offering added assurance for expats with global assets.
Both ADJD and DIFC offer non-Muslims in the UAE a way to ensure that their assets and loved ones are protected according to their wishes, with the ADJD offering the option of safeguarding the interests of Muslim citizens of other countries. Whether you are new to the UAE or have been here for years, registering your will with either of these entities can provide peace of mind and legal security.
Temporary guardianship: A must for expat parents
As an expat parent, temporary guardianship arrangements are a critical safeguard. In the event of an emergency, naming a temporary guardian ensures your children are looked after by a trusted individual until permanent arrangements can be made. In the UAE, where there may be no immediate family members present, this important legal document helps avoid potential delays and ensures your children’s care is seamless and secure.
Guardianship of minor children
As a parent, the well-being of your children is your top priority. If you have children under the age of 18, it's crucial to consider who will care for them if you and your partner are unable to do so. Appointing a guardian for your minor children is a vital aspect of estate planning, ensuring that your children are cared for by someone you trust and that their best interests are protected. This is particularly important for expatriates, as legal systems and cultural norms may differ significantly from your home country.
Appointing a guardian
Appointing a guardian for your minor children provides a clear legal framework for their care in your absence. This legally documented decision safeguards your children's well-being and provides instructions for their upbringing and education. Choose a guardian who shares your values and whom you trust to make decisions in your children's best interests.
Ensuring financial support
Wealth guardianship goes hand-in-hand with appointing a guardian. It's crucial to guarantee your children's financial security through mechanisms like trust funds or life insurance policies. These provisions cover your children's needs, such as education and healthcare, ensuring they are well-provided for even in your absence. Wealth planning is key to safeguarding their future.
Establishing an Enduring Power of Attorney
An Enduring Power of Attorney (EPA) is a powerful legal tool that allows you to plan for the future and ensure your wishes are respected, even if you become unable to make decisions for yourself due to unforeseen circumstances. It grants a trusted person the legal authority to manage your financial and personal affairs. This proactive step provides peace of mind, knowing your affairs will be handled responsibly.
An enduring POA is essential for anyone who wants to maintain control over their affairs. Without an EPA, if you lose mental capacity, your loved ones may face lengthy legal procedures to gain control of your assets. An enduring power of attorney avoids this, ensuring a smooth transition and continuity in managing your financial matters and healthcare decisions.
For expatriates with assets in multiple countries, establishing a lasting and enduring power of attorney requires careful consideration. An EPA that is valid in one country may not be effective elsewhere, so expert legal advice is essential to guarantee its validity and protect your interests.
Protecting your family’s future with comprehensive estate planning
Estate planning helps secure your family's financial future, ensuring your legacy is protected, managed and distributed as you wish. This is especially crucial for expatriates, as it allows you to navigate the complexities of international laws and ensure your wishes are upheld regardless of where your loved ones reside.
A key element of estate planning is securing the future of your loved ones. This includes making thoughtful provisions for your spouse, children, and dependents. Strategies such as life insurance, trusts, and inheritance plans help protect their financial stability, ensuring that your assets are distributed securely and in a tax-efficient manner.
Incorporating charitable giving into your estate plan is a powerful way to support causes you care about and leave a lasting positive impact on the world. By including charitable donations in your Will or establishing a charitable trust, you can contribute to organisations and initiatives that align with your values. Furthermore, charitable giving can offer potential tax benefits, allowing you to optimise your estate and maximise the value passed on to both your chosen charities and your beneficiaries.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.
Advice relating to a will, matters of guardianship, trust, and/or Power of Attorney involves the referral to a service that is separate and distinct to those offered by St. James’s Place.
With a little bit of planning and some expert guidance, you can add some certainty to your future.