The DIFC recently launched the DIFC Wills and Probate Registry, a welcome development for expatriates living in Dubai – particularly those with assets in the emirate. With more than 200 wills already registered, its need and success is clear to see. But how do you register a will in the DIFC and what other issues are there to consider? Here is a guide to the process:
Eligibility
The DIFC Registry is only to be used by foreigners with assets in Dubai. The rules of the registry only apply to:
• non-Muslim individuals over the age of 21;
• assets situated in the emirate of Dubai; and
• where any minors are habitually resident with the testator in the emirate of Dubai
How to register
A standard DIFC form of will must be used which, once completed, is registered at the DIFC Registry. Appointments can be made online at www.difcprobate.ae/appointments from 9am to 5pm Sunday to Thursday for the DIFC Registry, which is located in the main building of the DIFC. The wills are then stored, both originally and in electronic form (which provides additional security).
What’s involved?
Two witnesses are required when you bring your will to the DIFC Registry to be executed: the attendant at the DIFC Registry acts as one of these witnesses and the other witness may be anyone other than a beneficiary of the will (a friend or relative can attend provided they are not named in the will). The documents needed include your unsigned will (with any annexes), title deeds, your ID and that of the witness, and details of beneficiaries and of guardianship.
How long and how much?
The Registry can complete your will within your first appointment, as long as you have the necessary documentation and a witness. The fees are Dh10,000 per will, or Dh15,000 for two mirror wills (typically used by spouses) plus the drafting fees of the lawyer/expert, which will vary.
Potential challenges
The DIFC system was set up in response to uncertainty around whether Sharia law principles should apply to foreigners’ property, which often ended up in costly and time-consuming disputes in court. A major benefit of the registry is to provide certainty: judgments of the DIFC courts are directly enforceable in the courts of Dubai.
Is it the right option for me?
There is an expense involved in the drafting and registering of a will at the registry. Where an individual does not own assets or property in the UAE, then it might be more cost-effective to prepare a will in the individual’s country of origin.
Succession rules
Your country of origin may have rules determining who is entitled to a share of an estate (succession rules), including overseas assets. For example, new EU legislation to be enacted next month, known as the Brussels IV regulation, determines the extent of existing succession rules that apply in certain member states (the UK, Ireland and Denmark have opted out). The law is broad enough to potentially have an impact on overseas assets in Dubai and allow for the application of succession rules of the country where the deceased was “habitually resident”.
Other methods of inheritance planning
One popular method of holding property in Dubai is in a Jebel Ali Free Zone (Jafza) offshore company. The Dubai Land Department currently only allows Jafza offshore companies to be the registered owner of properties in those areas of Dubai that are designated for foreign ownership.
Standard practices in Dubai and practical steps to mitigate issues
Certain standard practices by the authorities in the UAE are triggered on death, including freezing of bank accounts until the estate is properly administered. Practical suggestions to avoid any immediate issues after the death of a loved one include holding life insurance policies payable to beneficiaries on death, and keeping savings separate from joint bank accounts where possible. This avoids the possibility of funds being frozen if one of the named account holders dies.
Gerry Rogers is a senior associate at Galadari Advocates & Legal Consultants and is based in the DIFC.
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