When investing in a property in Dubai, it’s important to consider a crucial aspect of property ownership, which is the inheritance law. Understanding how your real estate investment will be distributed is essential for protecting your family’s interests and ensuring your wishes will be implemented.
Throughout this guide, you will find all the information you need to know about the inheritance laws in Dubai for expatriates both Muslims & Non-Muslims.
The UAE operates under a dual inheritance system that distinguishes between Muslim and non-Muslim residents. For Muslim residents, inheritance is governed by Sharia law principles, which have already been the foundation of the UAE's legal system, and this inheritance system allocates specific shares to different family members.
On the other side, Non-Muslim expatriates now have greater flexibility, thanks to recent legislative changes that introduced new provisions that allow expatriates to choose whether their inheritance follows UAE law or the laws of their home country.
Now let’s dive deeper into more details.
Under Islamic Inheritance law, the distribution of assets follows a specific way to distribute the shares, and it cannot be altered. The law gives fixed portions allocated to spouses, children, and other relatives, as follows:
It's important to note that under Islamic Inheritance law, only one-third of the total estate can be freely allocated through a will, while the remaining two-thirds must be distributed according to Sharia principles, unless all heirs consent to a different arrangement.
Additionally, if the deceased had no children and no surviving spouse, in that case, the inheritance will be divided equally between the parents, if they are alive, or half of it will be given to one of them if the other has passed away, while the other half will be distributed to the siblings of the deceased. In case both parents have passed away, the inheritance will go to the siblings equally without any distinction between males and females.
Previously, all residents' estates were subject to Sharia law by default, which resulted in distributions that didn't align with the deceased's intentions or their home country's customs. But lately, the legal laws for non-Muslim property owners in Dubai have totally transformed, as non-Muslim expatriates can now choose to have their inheritance governed by their home country's laws.
This option provides more flexibility in deciding how real estate properties are distributed among beneficiaries, but to be applicable, non-Muslim expatriates must create a registered will that states their preference for home country inheritance laws to apply. Without such a will, the UAE's default inheritance provisions for non-Muslims will take effect.
The UAE’s default inheritance provisions for non-Muslims state that the estate is divided, with half going to the spouse of the deceased, and the remaining amount will go to the children in equal shares. In case the deceased had no children, then the other half is divided equally between the parents, if they are alive, or among the siblings in case the parents have already passed away.
When no valid will exists, the consequences may not reflect the deceased's intentions, as mentioned before, and the distribution will follow the UAE’s default inheritance provisions for non-Muslims.
The UAE’s default inheritance provisions for non-Muslims state that the estate is divided, with half going to the spouse of the deceased, and the remaining amount will go to the children in equal shares. In case the deceased had no children, then the other half is divided equally between the parents, if they are alive, or among the siblings in case the parents have already passed away. While if the deceased had no children, no wife, and no parents, the inheritance will go to the siblings equally.
Absolutely, they can! The non-Muslim expatriates living in Dubai can apply their home country's Inheritance laws, but they must take specific legal steps for this to be applicable.
First of all, they need to draft a will that clearly outlines their wishes for asset distribution, and this document should state that the testator wants their home country's inheritance laws to govern the distribution of their estate. But the will must be registered with a competent authority in Dubai to ensure legal validity, such as the DIFC Wills Service Centre or the Dubai Courts.
It’s important to note that proper registration is essential because an unregistered will may not be recognized or enforced.
Having a registered will provides numerous advantages that extend far beyond just being used for asset distribution, as it allows property owners to gain complete control over how their real estate investments and other assets are allocated among beneficiaries, ensuring their intentions are clearly documented for all parties and also will be enforced by Law.
For example, parents of minor children can use their will to nominate guardians of their choice, rather than leaving this crucial decision to court proceedings, so that they can feel peace of mind and ensure children will be cared for by trusted individuals if anything happens to them.
Also, a registered will can streamline the legal process for beneficiaries during an emotionally challenging time. Instead of navigating complex court procedures to determine inheritance rights, families can just rely on the will to transfer the assets.
Perhaps most importantly, having a proper will gives you real peace of mind as you can rest assured that your Dubai real estate investments will benefit your intended recipients according to your wishes, rather than default legal provisions that may not reflect your preferences.
Throughout this guide, we tried to highlight the most important points regarding the inheritance laws in Dubai for Muslims, non-Muslims, and expatriates. In case you have a specific property-related question, reach out to us directly at +97180015, and our real estate consultants will be glad to assist.
