A subject not often or readily addressed with regards property ownership and purchase is that of inheritance planning.  Many property owners in United Arab Emirates (UAE) are certain to have overlooked the importance of protecting their real estate assets, particularly during uncertain times like these. In America and Europe there has been an upsurge in setting up Wills and given that Sharia Law takes precedence in the absence of any other Testament, owners of property in the UAE would be wise to review their situation and ensure that their estate planning affairs are up to date and in order.

In the absence of a registered Will, Sharia Law will distribute an estate and appoint guardians according to its principles for Muslims and non-Muslims alike, the right of survivorship is not recognised. By this we mean that if a property is jointly owned, it will not automatically pass to the survivor which, in most cases, will be a Spouse. This also extends to other assets such as bank account funds which could be frozen for the duration of time-consuming and complex legal processes.

Since the pandemic ensued, the DIFC Wills Service Centre (WSC) has taken amazing steps to ensure that Wills can be registered online to include video conferencing between the Testator and two Witnesses joining from different locations and signing electronically. There are different options available including a specific Property Will which can cover up to five properties in the UAE, all the way up to a Full Will encompassing all assets.

Savills strongly urge our clients to take this opportunity to review their estate inheritance planning. It is also worth considering a valuation on any real estate assets that you have in the UAE so that it will help apportion distributions to beneficiaries accordingly. We don’t yet know the impact that COVID-19 will have on property prices in the months to come but a valuation today will certainly be more on point than not knowing at all.

If you are a property owner and would like to discuss the current value of your asset or would like to receive more information, in conjunction with legal partners, on the process for making or amending a Will, please CLICK HERE to contact Helen Tatham.