22 Dec Dubai International Financial Centre (DIFC) Wills for Dubai Residents
The Dubai International Financial Centre (DIFC) Wills are a crucial legal instrument for individuals and businesses operating in Dubai. These Wills, governed by the DIFC Courts, provide a framework for the distribution of assets located in Dubai, ensuring that the wishes of the testator are respected and their beneficiaries are protected. In this article, we will explore the relevance of DIFC Wills and the process of registering and maintaining them through the DIFC Wills Service Centre (DIFC WSC).
Learn how you can get DIFC Wills to secure your assets for your family and loved ones.
Understand the basics
A Will is a legal document that says how you want your estate to be allocated once you pass away. Your estate includes what you own and what you owe. A proper Will can help your estate representative deal with your estate when you pass away.
You’re not legally required to prepare a Will. However, if you don’t have a Will and pass away without one, your Dubai assets will be processed by the local courts under Sharia succession law regardless of your religion. That means the local assets (including company shares and assets) will all be distributed as the local rules dictate, without regard for your own opinions about who should gain from your estate.
The last thing you’d want is to have your spouse, family, and loved ones going through additional challenges by navigating unfamiliar succession laws distinct from succession rules found worldwide. The DIFC Will give you and your family peace of mind.
Importance of DIFC Will Registry
Single Will Solution
DIFC Wills are particularly important for business owners operating in the DIFC, as they provide a single will solution for managing their business assets, intellectual property, and other Dubai-based holdings. Additionally, DIFC Wills can include guardianship provision for minor children, addressing family law concerns.
For individuals and businesses with UAE onshore company or international connections, DIFC Wills offers a reliable dispute resolution mechanism, aligning with common law principles and providing legal certainty in asset distribution and succession planning.
By leveraging the DIFC Courts’ legal framework and the DIFC WSC’s expertise, individuals and business owners can ensure their assets are properly managed and transferred according to their wishes, while navigating the complexities of UAE law and employment law.
Ensuring Proper Distribution of Assets in Dubai
Without a DIFC Will, the distribution of assets located in Dubai would be subject to Sharia law, which may not align with the testator’s intentions or the legal principles of their home country. DIFC Wills allows individuals to dictate how their Dubai-based assets, including real estate, property, and financial assets, should be distributed, providing them with control and peace of mind.
Avoiding Potential Legal Complications
In the absence of a DIFC Will, the distribution of assets can become a complex legal matter, potentially leading to disputes and lengthy court proceedings in Dubai Court. By registering a DIFC Will, individuals can circumvent these complications and ensure a smooth transfer of their assets to their chosen beneficiaries, following common law principles.
Providing Peace of Mind and Legal Protection
DIFC Wills offer legal protection and peace of mind to individuals and their families. By clearly outlining their wishes, testators can rest assured that their assets will be distributed according to their intentions, minimizing the risk of conflicts and ensuring that their loved ones are taken care of, adhering to UAE law and providing legal certainty.
Process of Registering a DIFC Will
A. Step-by-Step Guide to Registering a DIFC Will
The process of registering a DIFC Will involves several steps, including:
- Obtaining a DIFC Wills Registration Application Form
- Providing personal and asset-related information
- Drafting the DIFC Court Will in accordance with DIFC regulations
- Appointing an executor or guardian (if applicable)
- Submitting the completed application and supporting documents
B. Required Documents and Information
To register a DIFC Will, individuals will need to provide various documents and information, such as:
- Proof of identity and residency
- Details of assets located in Dubai
- Information about beneficiaries and their respective shares
- Appointment of an executor or guardian (if applicable)
C. Fees and Costs Associated with the Registration Process
The registration of a DIFC Courts Will involves fees and costs, which may vary depending on the complexity of the Will and the value of the assets involved. It is advisable to consult with professional legal services to understand the exact registration fee applicable to your specific situation.
How the DIFC Wills & Probate Registry Rules can help
If you are non-Muslim, you can create a Will with the DIFC Wills & Probate Registry in English, ensuring that your local and global assets are split according to your wishes. You can also appoint guardians for children under 21 who are residents of Dubai or Ras Al Khaimah.
We recommend that you seek professional advice on whether this Will can cover worldwide assets based on the DIFC WPR rules of the jurisdiction where your assets are located.
DIFC Wills are prepared by a wills draftsman registered with the DIFC Courts Wills Service and need to be signed and registered at the DIFC. The fees can range from AED 5,000 (USD $1361) to AED 15,000 (USD $4084), depending on the intricacy of the Will.
You will need to bring two witnesses to the Will signing. The witnesses must be above 21 years of age and cannot be a Beneficiary (or a spouse of a Beneficiary or a Guardian) mentioned in the Will. Once the DIFC Will is signed and registered with the DIFC Courts Wills Registry Service, it is legally binding.
DIFC Wills under the DIFC Courts are retained electronically in the DIFC Wills Registry for Non-Muslims at the DIFC Courts’ records. The electronic format Will retained by DIFC is treated as the original Will for DIFC purposes.
Maintaining and Updating DIFC Wills
Circumstances that May Require Updating a DIFC Will
DIFC Wills should be reviewed and updated periodically to reflect any changes in personal circumstances, such as marriage, divorce, birth of children, or significant changes in asset ownership. Failure to update a Will can lead to legal complications and potential disputes.
Process for Amending or Revoking a Registered DIFC Will
The process for amending or revoking a registered DIFC Will involves submitting a formal request to the DIFC Wills Service Authority, along with the necessary supporting documents. It is recommended to seek professional legal assistance to ensure that the process is carried out correctly and in compliance with all relevant regulations.
Importance of Keeping DIFC Wills Up-to-Date
Keeping DIFC Wills up-to-date is crucial to ensure that the testator’s wishes are accurately reflected and that their assets are distributed according to their current intentions. Neglecting to update a Will can lead to disputes, legal complications, and potential financial consequences for the beneficiaries.
I’m convinced; what do I need to do next
You can consult with a law firm that can advise on the best way to protect your legacy; however, if you already have that step sorted, you can find a draftsman for your Will through the DIFC website and schedule an appointment.
Our business consultants in Dubai can assist you if you need assistance finding a suitable provider. Contact us today!
Also, don’t forget to see the comparison between Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM)
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