United Arab Emirates (UAE) is a Sharia law country in respect of personal status and Inheritance. As per the UAE Law, UAE Courts will adhere to Sharia law in a situation where there is no Will in place. This means if you die without a Will, the local courts will distribute your estate and appoint guardians according to Sharia Law principles. The distribution of your estate in accordance with Sharia Law principle can have some, often surprising and unwanted implications. All personal assets of the deceased, including bank accounts, will be frozen until liabilities have been discharged. A wife who has children will qualify for only 1/8th of the estate, and without a Will this distribution will be applied automatically. Even jointly held assets will be frozen until the issue of inheritance and succession is determined by the local courts. Unlike other jurisdictions the UAE does not recognise the survivorship rules which ultimately means that there is no automatic transfer of joint assets to the joint survivor. If you own a business, whether this be a Free Zone Company or an LLC, in the event of a shareholder or director’s death, local probate laws apply and shares do not pass automatically by survivorship nor can a family member take over in lieu. The Sharia Law principles regarding guardianship of bereaved children importantly state that on the death of the children’s Father, the Mother has no automatic entitlement to legal guardianship of her own children. Since, the UAE has the highest Number of expats doing business and living here due to the fair policy of the government, In order to accommodate those residents of the UAE who ascribe to different religions, the Law of Personal Status permits a non-Muslim expatriate living in the UAE to elect to apply the law of his or her country to matters of personal affairs through the execution of proper will at Dubai Courts or DIFC Registry. Additionally Article 17 of the UAE Civil Code states that “inheritance shall be governed by the law of the testator at the time of his death”. Now, you may feel that, I do not have any assets here, then why I need a will??? Still, you need, because, you do not know about your future assets, like gratuity, Life insurance, Compensation or insurance on the ground of unexpected way of death, secure your interest in the mode of burial, Guardianship of children, etc Author is a lawyer with rich experience, competent to consult and advise on the legal issues and attached with a pioneer law firm in the region, can be reached at [email protected] http://legaldubai.weebly.com/ , +971-527520742
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