Inheriting Assets in the UAE: Why Expats Are Turning to DIFC Wills

Maxim Stepanov, DIFC Will Draftsman, Managing Partner, Emirald Legal Consultants FZ-LLC, Registered Foreign Lawyer regulated by the Solicitors Regulation Authority (England and Wales)

Sergey Ilyin, DIFC Will Draftsman, PhD in Law, Partner, Emirald Legal Consultants FZ-LLC

Over the past two decades, Dubai has evolved into one of the world’s major international hubs for living, business, and investment. The city attracts entrepreneurs, senior executives, and investors from around the globe. Many of them spend a significant part of their lives here, purchasing real estate, opening bank accounts, and establishing companies.

Unlike many European countries, where the rules of inheritance are familiar and well understood by most citizens, the UAE’s legal system has its own distinct features. Historically, matters of inheritance have been governed by Sharia law and the system of fixed inheritance shares — faraid — which assigns predetermined portions to specific categories of heirs (spouse, children, parents, and others).

For Muslims, this is a natural legal framework. For foreign residents — particularly those from Europe, North America, and post-Soviet countries — it can come as a surprise.

Even ten to fifteen years ago, many expats regarded the UAE as a temporary place of work. The introduction of long-term residence visas, the growth of investment opportunities, and the development of financial infrastructure have led an increasing number of foreign residents to view Dubai as a place of long-term residence. Real estate, bank accounts, investment portfolios, company shares, and digital assets — all of these are becoming part of the family wealth formed in the UAE.

At the same time, the region remains part of a world where the geopolitical landscape shifts rapidly. Tensions in the Middle East, uncertainty in international markets, and waves of sanctions — this is the backdrop against which people accustomed to thinking several steps ahead are increasingly returning to fundamental questions: how are my assets protected? What will happen to my family if something happens to me?

One such question is inheritance. And it typically remains on the periphery of attention. The reasons are understandable: the topic is psychologically uncomfortable — nobody wants to think about their own death, let alone plan its legal consequences. And there is a simple lack of awareness of the specifics: the UAE’s legal system is structured differently from those in Europe or post-Soviet countries, yet few people give this any thought until it is already too late.

We discussed how inheritance actually works in the UAE, the risks expats face, and what a will registered with the DIFC Courts (the Courts of the Dubai International Financial Centre) offers, with accredited will-drafting specialists (DIFC Will Draftsmen) — Maxim Stepanov, a Registered Foreign Lawyer regulated by the Solicitors Regulation Authority (England and Wales) and Managing Partner of Emirald Legal Consultants, and Sergey Ilyin, PhD in Law and Partner at Emirald Legal Consultants.

A Foreign Will and Assets in the UAE

Let us begin with the issue most expats in the UAE encounter. Many have a will drawn up in their home country — and an assumption that it covers all assets, including those abroad. Is this actually the case in practice?

The starting point is a fundamental principle of international inheritance law — the principle of territoriality. It means that the fate of assets is determined, first and foremost, by the law of the country where they are located, not by the law of the jurisdiction where the will was drafted. In the context of the UAE, this is of critical importance: having a will drawn up, for example, in Europe or a post-Soviet country does not in itself guarantee that it will be automatically applied to assets in the Emirates. Such a will can formally be submitted for enforcement, but this will require a separate procedure of legalisation and translation, the engagement of a local Arabic-speaking lawyer to apply to a UAE local court for recognition of the will and to obtain a ruling on the distribution of assets. Throughout this period, the assets will remain frozen. This means, for example, the impossibility of conducting transactions involving real estate, vehicles, or company shares (whether in a Free Zone or Mainland LLC), as well as the absence of access to the management of bank accounts, the contents of safe deposit boxes, and investment assets.

For expats, the standard practical recommendation is therefore to draw up a separate will in the UAE that expressly covers local assets, ensures predictability of their transfer to heirs, and eliminates the possibility of a conflict of laws between different countries.

Our practical recommendation: assets in each jurisdiction should be covered by a separate will in that jurisdiction.

A classic situation in which expats rely on a foreign will — and encounter unexpected consequences:

A citizen of a European country and a UAE resident owned real estate in Dubai, a company share, and held bank accounts. The will had been drawn up in the country of citizenship and extended to “all assets worldwide.” The client was confident this was sufficient for transferring property to the family.

The mistake: the absence of a local will in the UAE and the assumption that the foreign document would be automatically recognised.

The consequences: after the owner’s death, the bank froze the accounts, and company management proved difficult: corporate decisions could not be taken until the heirs were determined. Transferring the assets required initiating a procedure for the recognition of the foreign will in the UAE — involving document legalisation, translation into Arabic, and court proceedings. During this period, the assets were effectively “locked,” and the family had no immediate access to funds or control over the business.

Timeline: the entire procedure took approximately one year in total.

Outcome: the assets were ultimately transferred to the heirs, but with substantial delays and operational losses. The key issue was the absence of a local will in the UAE that would have allowed the testator’s wishes to be confirmed quickly and without a complex court procedure.

Inheritance Without a Will

Suppose there is no foreign will — or it is not applicable to local assets. What then? Surely the inheritance will still pass to the family by operation of law — as it does in most countries. But in the UAE, the mechanism works differently.

If there is no will, or it is not applicable to local assets — what happens?

As noted above, inheritance in the UAE has historically been governed by Sharia law, which provides for a system of fixed shares (faraid). A wife receives 1/8 of the estate if there are children and 1/4 if there are none. A son’s share is twice that of a daughter’s. The mother of the deceased receives 1/3 of the estate if the deceased has no children and no two or more siblings, or 1/6 if there are children or two or more siblings. The father of the deceased generally receives 1/6 as a fixed share if there are children, and in the absence of children, the entire residue of the estate after payment of fixed shares to other heirs (wife, mother) as a so-called agnatic heir (asaba). If the father is not alive, the residue passes to male-line heirs in descending order of priority: sons, then grandsons through the male line, then the paternal grandfather, brothers, nephews through the male line, and further along the collateral male line. In the absence of a will, partners not in a registered marriage and adopted children are not recognised as heirs under Sharia law. It is important to note, however, that this model does not apply in all cases: alternative mechanisms are available for non-Muslims in the UAE, and the existence of a will can significantly alter the order of asset distribution.

Federal Decree-Law No. 41 of 2022 (which came into force on 1 February 2023) introduced an alternative system for regulating family and inheritance matters for non-Muslims. The law provides for a different model of estate distribution, distinct from classical Sharia rules; however, its application depends on the jurisdiction of the court and the specific circumstances of the case.

On the one hand, the law provides that its distribution model may apply to the inheritance matters of non-Muslims (for example, the 50/50 principle between spouses and children), and in a number of cases UAE courts do indeed proceed on the basis that this regime applies by default to non-Muslims. On the other hand, in practice, application depends on several factors: the jurisdiction (which court is hearing the case — mainland or a specialised court), the presence or absence of a registered will, and whether the parties have invoked the application of a different law.

Law 41/2022 may thus serve as the default regime for non-Muslims in the absence of a will. However, this is not guaranteed in all scenarios (particularly where assets are located in different jurisdictions or where there is a dispute among heirs). In professional practice, it is therefore still recommended to draw up a local will in the UAE if the client wishes to ensure a predictable outcome rather than relying on how a local court interprets the applicable law.

Key takeaway: Law 41/2022 does not replace the need for inheritance planning.

DIFC Courts and the New Inheritance Model

So the default local inheritance framework is either Sharia or Law 41/2022, which still does not provide full control over inherited property. But in Dubai there exists an alternative system, created specifically for foreign residents.

What alternative does the DIFC system offer?

In 2014, under Resolution No. 4 of 2014, the Dubai International Financial Centre (DIFC) Courts established a will registration system for non-Muslims — the DIFC Wills Service, which began accepting wills in April 2015.

This system was designed to address a specific task: to provide expats with the ability to distribute their UAE assets in accordance with principles familiar from international inheritance practice.

Unlike the traditional inheritance system, DIFC procedures are based on the principles of English common law. This means that an individual can independently determine:

• who will inherit the assets;
• how the estate will be distributed;
• who will execute the will;
• who will become the guardian of minor children.

For expats accustomed to this kind of legal logic, such a model proves far more comprehensible.

In recent years, the jurisdiction of the DIFC Courts has been expanded, and wills registered with the Courts can apply to assets across various emirates of the UAE. However, enforcement of the will may typically require interaction with local courts in each individual emirate.

In practice, the probate procedure with a registered will can take several weeks, whereas inheritance cases without a will registered with the DIFC Courts often last considerably longer — depending on the composition of the assets, the number of heirs, and court procedures.

Who Can Prepare a Will for the DIFC Courts

The DIFC Courts system appears logical and convenient. But a practical question arises: whom should one approach? Can any lawyer prepare such a will?

Who has the right to draft a will for registration with the DIFC Courts?

It is important to understand that a will for registration with the DIFC Courts cannot be prepared by just any lawyer.

The DIFC Courts have introduced a special professional status — Will Draftsman. This is a lawyer who has registered with the DIFC Courts, passed a special examination, and has the right to prepare wills for registration with the Courts system and, where holding the appropriate status, may also oversee the probate procedure.

This model was introduced to ensure a uniform quality standard for legal documents and to prevent errors that could potentially lead to disputes during the inheritance process.

A will containing an error — an imprecise formulation, an incomplete description of assets, a procedural violation — may be contested. The family would find itself in the same situation as if no will existed.

The register of Will Draftsmen at the DIFC Courts is limited and comprises a small circle of accredited will-drafting specialists. Their involvement is not mandatory, but in practice it significantly reduces the risk of rejection or delays in registration. The procedure takes on average two to three weeks and includes the preparation of a draft will, its agreement with the client, online signing with two witnesses, and registration with the DIFC Courts. A registered will is not a “rigid” instrument — it can be amended or replaced at any time.

Several Situations Families Encounter

Theory is one thing. But to understand why a will is truly necessary, it is worth looking at specific cases. What happens to different types of assets when the owner passes away without a will?

What specific situations do you encounter in practice?

Real Estate

One of the classic situations involves real estate. An expat purchases an apartment in Dubai, assuming that in the event of their death, the property will automatically pass to the spouse. However, without a will, heirs often have to go through a lengthy court procedure to confirm their rights to the property.

The heirs go through the local Arabic court: confirmation of rights, property valuation, settlement of all obligations — and only then distribution. Where there is a mortgage, the procedure becomes more complicated. The spouse can neither sell the apartment nor dispose of it until the case is concluded. The form of ownership affects the outcome: sole ownership, joint ownership, or ownership through a company — the procedure and timelines differ.

Bank Accounts

Another common situation concerns bank accounts. Upon the death of the account holder, financial institutions typically freeze all accounts until the legal inheritance procedure is completed. For the family, this can mean a significant waiting period.

There is no single Central Bank directive in UAE legislation that directly prescribes the freezing of accounts in the event of a client’s death. However, this practice derives from a combination of UAE banking and civil law provisions, including those of Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law). The bank is obliged to suspend account operations until the heirs are determined. Given that the deceased’s assets form part of the estate, banks in the UAE adopt a conservative approach and, as a rule, fully freeze the accounts, including joint accounts, until a court ruling is obtained.

Business Share

A separate category of issues relates to business. If an entrepreneur holds a share in a company, the absence of a clear inheritance structure and a will in the UAE can create uncertainty for the company’s partners and the entrepreneur’s family.

The company’s partners are left in limbo: operational decisions cannot be taken, contracts cannot be signed, and banking operations are restricted. The business can be paralysed for the entire duration of the inheritance case — a year or longer.

A case from practice. The 100% shareholder of a company (a Free Zone company with operational activities — property leasing and servicing) died suddenly without leaving a local will. He was the sole shareholder, the General Manager, and the signatory on the bank accounts. Upon receiving notification, the bank froze the company’s accounts, and the Free Zone administration suspended any changes to the corporate structure pending the determination of heirs. As a result, the company was effectively “paralysed”: it was unable to pay suppliers, disburse salaries, or service current obligations.

The resolution procedure took approximately 8–10 months: collecting and legalising documents from another jurisdiction, opening an inheritance case in the UAE, obtaining a court ruling, and subsequently re-registering the shares. During this time, the business incurred substantial losses — client attrition, late-payment penalties, deteriorating relationships with counterparties and, ultimately, a decline in the company’s value. This case illustrates well that the absence of a will in the UAE is not only a legal risk but a direct operational risk for the business.

Digital Assets

A separate topic is digital assets. How do things stand with the inheritance of cryptocurrencies?

Registering a Digital Assets Will with the DIFC Courts generally follows the same procedure as other types of wills, with adjustments for the specifics of digital assets. Such a document may be drawn up as a standalone will or as part of a comprehensive structure (for example, within a Full Single Will) and can cover crypto-assets, online accounts, digital wallets, and other digital rights. The will identifies the beneficiaries and appoints an executor who will be responsible for managing and transferring such assets.

The will typically describes categories of assets rather than specific ones, making the document more flexible. Particular attention is paid to the appointment of the executor and the specification of the mechanics of access and transfer — sometimes through separate instructions (a letter of wishes). It is fundamentally important that passwords, private keys, and other sensitive data are not included in the text of the will and must be stored separately in a secure format.

The key practical nuance is that a Digital Assets Will resolves the legal question of inheritance but does not guarantee technical access to the assets. It is therefore essential to think in advance about the mechanism for storing and transferring keys — through hardware wallets, custodial solutions, or other off-chain instruments, without which even a correctly drafted will may prove ineffective.

From a legal standpoint, a Digital Assets Will can cover both assets on centralised exchanges and DeFi positions; however, in practice there is a fundamental difference between them. Assets on centralised exchanges (Binance, Coinbase, etc.) are legally simpler: they are, in essence, claims against the platform. The will determines who the beneficiary is, and heirs can gain access through the exchange’s own procedures — usually by providing documentation (death certificate, probate order, will). However, it is important to understand that actual access is governed not only by the will but also by the platforms’ internal rules, which can lead to delays and additional checks (KYC).

With DeFi assets, the situation is different. In decentralised protocols, there is no intermediary, and control over assets is determined solely by possession of the private keys or seed phrase. In this case, the will resolves only the legal component — who inherits the asset — but does not provide technical access. If the keys have not been transferred or structured in advance, the assets may be effectively lost. According to available estimates, a significant volume of crypto-assets has already been lost for precisely this reason — owners did not leave a mechanism for transferring access.

A Digital Assets Will is thus a necessary but insufficient instrument. It establishes rights but requires a parallel access infrastructure: secure key storage, the use of hardware wallets, custodial solutions, or off-chain instructions. Without this, even a legally impeccable will may prove unworkable in practice.

At the same time, demand for such solutions is growing noticeably. Digital assets are becoming an increasingly significant part of private investors’ portfolios, and with this comes a growing awareness of the risks of their loss during inheritance. However, the level of client preparedness still lags behind: many continue to believe that it is sufficient to list crypto-assets in a will without giving thought to access. It is precisely this gap between the legal and technical sides that remains the key challenge of digital inheritance.

Children and Guardianship

And what about children? For families, this matters more than any property.

Sometimes the most important question concerns not assets at all, but children. International families often live far from relatives, and the question of custody in the event of unforeseen circumstances becomes particularly sensitive.

Under Sharia law, legal guardianship generally passes to the nearest male relative on the father’s side. The mother retains the right to physical care but not to legal decision-making.

If no suitable relatives are available — and for expats this is a typical situation — children may be placed under temporary state guardianship. A will registered with the DIFC Courts allows for the appointment of both a temporary and a permanent guardian. We recommend appointing a relative or close family friend as the permanent guardian, and a UAE resident who lives permanently in the UAE as the temporary guardian, so that in the event of an occurrence, they can promptly take steps to protect the children’s interests and act on their behalf until the permanent guardian arrives in the UAE and assumes their rights.

At the stage of identifying guardians, the question of remuneration for their services should also be addressed.

A guardian need not be a UAE resident, but must confirm their consent to the DIFC Wills Service Registrar in writing or by submitting a witness statement. A copy of the signed consent to serve as guardian is kept in the DIFC Courts archives.

Estate Without Heirs

There is one more scenario that is rarely discussed but carries serious consequences. What if a person dies without a will — and without heirs whom the local court recognises?

What happens if a person dies without a will and without heirs?

In accordance with the latest amendments to UAE legislation, including Federal Decree-Law No. 51 of 2024 (which came into force on 1 January 2026), if a person dies without a will and without heirs, the property may be classified as a “heirless estate.”

Following a court review, such assets are transferred to a special state-regulated charitable endowment (waqf), where they are used for public purposes.

Even if a person has lived in the UAE for decades but has not drawn up a will and has no heirs, their assets may not pass to family or friends — they will go to a state fund.

Civil partners, adopted children, and children from an unregistered marriage may all fall outside the circle of recognised heirs. The court publishes a notice and waits for the prescribed period. If no one asserts their rights, the assets pass to the waqf.

Common Mistakes

We have examined how the system works and what instruments exist. But even among those who are generally aware, mistakes occur — sometimes critical ones.

What mistakes do you see most often?

Case 1. Real estate: “the spouse will inherit automatically.”

Situation: a UAE resident (European) owned an apartment in Dubai. He was married and had one child. The will was drawn up in the country of citizenship.

Mistake: the client assumed that the spouse would automatically inherit the property, as is the case in his home country. There was no local will in the UAE.

Consequences: after the owner’s death, the asset was included in the UAE estate. A court procedure was required, in the course of which local rules were applied. The distribution of shares did not match the family’s expectations. Until the ruling was obtained, the apartment could not be sold or re-registered.

Timeline: approximately 6–7 months until the procedure was completed and the heirs’ rights were registered.

Outcome: the wife received a share, but not to the extent that had been assumed. The apartment transaction was delayed by almost six months.

Case 2. Business share: “we’ll sort it out later.”

Situation: an entrepreneur owned a 50% share in a Free Zone company (operational business, trading). There was no will in the UAE.

Mistake: no provision had been made for who would manage the company share in the event of death, and no executor had been appointed in the local jurisdiction.

Consequences: after the owner’s death, corporate decisions were blocked; the bank restricted account operations; the Free Zone administration did not permit changes to the participants’ structure without an inheritance ruling. The company effectively found itself in a management vacuum: payment delays, contractual risks, and pressure from counterparties.

Timeline: approximately 8–10 months until the court ruling was obtained and the shares were re-registered.

Outcome: the business continued to operate, but at a loss; some clients departed, financial performance declined, and the company’s value effectively dropped.

Case 3. Bank accounts: “a joint account will solve everything.”

Situation: a married couple held a significant portion of their funds in a joint bank account in the UAE.

Mistake: there was a belief that upon the death of one spouse, the other would automatically retain access to the full balance of the joint account.

Consequences: upon notification, the bank froze the account in its entirety — not merely the deceased’s share. The surviving spouse was left without access to the funds: difficulties arose with day-to-day expenses; there were delays on obligations (including rent and children’s tuition); an inheritance procedure had to be initiated.

Timeline: approximately 4–6 months until the funds were unblocked and the assets distributed.

Outcome: the funds were ultimately received, but the family spent several months living with restricted liquidity.

Overall conclusion: in all three cases, the problem was not the absence of assets but the absence of a local inheritance structure. Without a will in the UAE, even basic expectations — transfer of real estate to a spouse, management of a business, or access to accounts — cease to work automatically and turn into a protracted legal procedure.

Practical Checklist

In conclusion — a concrete action plan. For those living in the UAE who have not yet addressed inheritance planning.

What specifically needs to be done?

1. Review your current will. Ensure that any existing will covers assets in the UAE. In most cases, foreign wills do not work automatically and require recognition through the courts.

2. Compile a register of UAE assets. Record all assets: real estate, bank accounts, company shares (specifying the Free Zone), digital assets (crypto, accounts, wallets). This forms the basis for correctly structuring the will.

3. Identify the heirs. Clearly specify to whom and which assets should pass. This is especially important if you wish to depart from the default distribution.

4. Appoint executors. Designate a primary and a backup executor. They will be responsible for the probate procedure and interaction with banks, government bodies, registrars, and courts.

5. Resolve the guardianship question (if you have children). Appoint both a permanent and a temporary guardian. Without this, decisions may be taken by the court, which does not always align with the family’s expectations.

6. Think through access to assets. This is especially important for digital assets: the will determines the right, but does not provide access. The storage of keys, passwords, and instructions must be organised separately.

7. Engage an accredited specialist (DIFC Will Draftsman). A list of accredited specialists is available on the DIFC Courts website. Engaging a specialist reduces the risk of errors and rejection of the will’s registration.

Interaction with a specialist (as well as the registration of the will with the DIFC Courts) can take place either in person or via online conference, without requiring physical presence in the UAE.

Inheritance planning in the UAE is not merely a legal document but a practical configuration of access to assets. The sooner this structure is created, the fewer risks for the family and the business.

Inheritance Planning as Part of a Financial Strategy

In international practice, a will has long been regarded as an element of financial and family planning. In global financial centres — whether New York, London, Singapore, or Hong Kong — this question is typically addressed simultaneously with investment and tax structuring. As Dubai becomes a long-term centre of life for foreign residents, a similar practice is taking shape here as well.

For many expats, a will becomes less a legal document than an instrument for ensuring predictability. In a world where families, assets, and businesses are often spread across multiple jurisdictions, such predictability acquires particular value.

For a consultation on inheritance planning in the UAE, contact the Emirald Legal Consultants team: emiraldlegal.ae