Where there is a will, there is a way

dubai - If you do not leave a will behind, Shariah law is applied by default

Will is a mandatory assignment of financial planning. It is a legal requirement for estate planning for citizens in many countries and vitally important for expats. By definition of the word, a 'will' is a choice that an individual sets. Technically, it is a legal document that sets forth your wishes regarding the distribution of your property, your assets and the care of any minor children in the event of death.

Why do I need one?
Creating a will gives you sole discretion over the distribution of your financial assets, property, family heirlooms and even provision for care of minor children. If you have a business or investments, your will can direct smooth transition of those assets and minimise tensions among survivors. In the UAE, one would need a will to ensure the following:
 
>  1. The UAE follows Shariah law for distribution of assets. Non-Muslims, however, are given the option to choose to opt out of the application of Shariah law for the distribution of their assets in the UAE. If you do not leave a will behind, Shariah law is applied by default to the distribution of your moveable as well as immoveable assets in the UAE.

> 2. In the absence of a will, the guardianship of your children below 21 years of age may be determined by the courts as per the UAE Law. A duly registered will can ensure the appointment of your wife as the guardian of your minor children.

>  3. For security and safety of your financial liquid assets, bank accounts in the UAE are frozen upon the death of an individual. This includes all single as well as joint bank accounts. A will can thus be a critical instrument for the spouse(s) to have control of bank account(s) upon the completion of the process of probate after death.

>  4. The dependent's visas are cancelled upon the death of the individual, giving dependents a stay of maximum one month to sort out their situation and leave the country. A will comes in handy in such situations as it is the quickest way to claim and acquire rightfully owned assets.

When and how do I get my will done?
With expat investment growing in the UAE, it is important for them to think about estate planning as soon as they plan investing in any real estate in the UAE. After all, the investments are for their loved ones who should rightfully receive the share meant for them. Once you own any financial/physical asset in the UAE, it should be backed by a nomination as well as a will. When you are ready to prepare a will, compile a list of your assets, liquid cash, the contents of safe deposit boxes, items of sentimental value, family heirlooms and other assets that you wish to transfer to a particular person or entity. Enlist an attorney who has extensive experience writing wills.

What options do have?
Fortunately, the UAE is evolving fast to suit the needs of expats. While the UAE's Personal Status law in general decides inheritance issues for Muslims of all nationalities in the UAE, Article 1(2) of the Personal Status law and the UAE Civil Code give liberty to all non-Muslim expats to apply the law of their home country for inheritance. The UAE currently offers these options:

>  Notary public will: These wills are written in English and Arabic (bilingual format) and registered with a notary public in Dubai. These wills can cover all the Emirates where the testator resides or has assets. The cost of registering the will with Dubai Courts is Dh2,250. 2017 Dubai law relating to estate management and execution of wills of non-Muslims in Dubai affirms that foreign non-Muslim expats can now register wills in English by virtue of internationally recognised common law. This law, however, is currently awaiting a decision of the chairman of the Executive Council.

>  The DIFC Will: DIFC law allows non-Muslims to register their wills with the DIFC Wills Service Centre. The wills are given effect by way of a simple probate process before the DIFC courts. If the assets are located within Dubai but outside the DIFC, DIFC court orders will require an execution or 'enforcement stamp' that is applied by the Dubai Courts as an administrative formality. The person nominated in the will called the executor will then be free to administer the estate of the deceased. Due to an MoU between DIFC Courts and RAK Courts, assets located in Ras Al Khaimah can also be covered under the DIFC Wills. While there are various types of wills in DIFC, the registration fee for a single full will (i.e. which include both assets and guardianship provisions) is currently set at Dh10,000 plus VAT, while other types of wills carry different registration fees. Couples can register 'mirror' wills for husband and wife both generally costing Dh15,000.

Abu Dhabi will
The Abu Dhabi Judicial Department allows for the registration of wills by non-Muslims for their Abu Dhabi assets at a cost of Dh950 which can be paid online.

It is recommended to use a legal expert to draft your wills and their fees will be in addition to the cost mentioned above. While a will ensures that the distribution of assets is done as per our wish, there is one option that supersedes any other option of estate planning. Establishing an offshore "whole of life insurance" equivalent to the assets that one wants to pass on as a legacy. Offshore products are not governed by the law of land where you live and the proceeds are available in any part of the world. A life insurance, therefore, is an integral part of a modern will.

Chanda is an entrepreneur and financial planning consultant and Amit is a legal professional working in financial services. Views expressed are their own and do not reflect the newspaper's policy.