Dubai International Financial (DIFC) Wills and Probate

Having a valid will is essential to ensure that, upon death, assets are distributed according to the testator’s wishes and to avoid delays, disputes, or unintended allocations. Choosing the appropriate jurisdiction in the UAE for registering the will is a critical decision, depending on the individual’s personal circumstances, including religious considerations, to ensure the will is fully effective and enforceable. This article focuses specifically on wills registered in the DIFC.

The DIFC Wills and Probate Registry

The Wills and Probate Registry (WPR) in the DIFC was created to provide a clear and reliable framework for non-Muslims to manage succession in the UAE. Functioning under a common law system, the registry offers a transparent and internationally recognized forum for probate and estate administration.

A key advantage of the DIFC system is that its wills can be enforced both within and outside the DIFC, ensuring broad legal recognition. The process has also been modernized to allow wills to be registered entirely online, so a will can now be submitted and registered from anywhere in the world, making estate planning more accessible and convenient. The wills service does not register or hold hard copies, as the electronically signed versions are considered the original wills.

Types of DIFC Wills

To ensure testamentary freedom, the DIFC offers various will options tailored to specific needs:

• Full Will: Covers asset distribution and appoints guardians for minor children.
• Property Will: For up to five real estate properties or shares in those properties.
• Guardianship Will: Appoints guardians for minor children, subject to eligibility requirements.
• Financial Assets Will: Includes up to ten bank or brokerage accounts registered solely or jointly in the testator's name, with accounts held at UAE banks or firms.
• Business Owners Will: Covers up to five shareholdings in any UAE onshore or free zone company.
• Digital Assets Will (for which only the DIFC has introduced a dedicated legal framework): This Will contains the testator’s digital assets within a DIFC Courts’ non-custodial wallet.

Partial Intestacy and Asset Coverage

A major consideration is partial intestacy when opting for a limited will (e.g., a property will). For example, when opting for a property will, assets such as bank accounts that are receiving salaries or end-of-service benefits will not be covered.

For this reason, it might be advisable to opt for the full will. The full will is ideal for those with multiple properties or diverse assets, as it covers both movable and immovable properties, allows for guardian appointments, and allows the inclusion of digital assets.

Probate and Amendments

Moreover, the DIFC provides an efficient probate process that ensures the swift and orderly administration of estates and facilitates future amendments to a will (if any) through a straightforward process with subsidized fees.

Additional Considerations

Additional considerations should be kept in mind when preparing a will, such as joint assets which may require the execution of a mirror will, as the right of survivorship does not automatically apply in the UAE. In some cases, wills may also need to be translated if they are referred to onshore courts or other jurisdictions.

One additional consideration is that any gift made to a witness will invalidate the will. This exists to prevent any potential conflicts of interest or undue influence, ensuring that witnesses remain impartial and that the testator’s intentions are protected. Therefore, careful attention must be paid when selecting witnesses to avoid inadvertently including anyone who stands to benefit from the will.

Furthermore, it’s important to note that wills generally may need to be revised following marriage to ensure they remain valid and accurately reflect the testator’s intentions. A subsequent marriage after a will has been registered invalidates the will in its entirety. A new will must therefore be signed after the date of marriage in the form of a will modification.

A subsequent divorce also invalidates the gift (not the entire will) made to the now ex-spouse. Again, it would be necessary to consider making a new will or other arrangements to reflect the changed circumstances.

Global Asset Considerations

An additional important note is that a DIFC will permits referencing global assets; however, compliance with the laws of the jurisdiction where the assets are located must be verified.

Conclusion

The DIFC framework provides a modern, flexible, and recognized system for non-Muslims in the UAE to manage wills, probate, and guardianship efficiently.

With careful planning and proper registration, individuals can ensure that their estate is administered according to their wishes while safeguarding the interests of beneficiaries.

At Rasma Legal, we have the expertise to guide you through this process, mentioning all the considerations that need to be taken into account to best protect your interests, in addition to our Managing Partner being a registered DIFC wills draftsman qualified to prepare and register DIFC wills.