The Importance of Wills and Legal Preparations for Expats

As an expat living in the UAE, securing your financial future and protecting your loved ones should be a top priority. Without proper legal documentation, your assets might not be distributed according to your wishes, leading to unintended and potentially devastating consequences for your family.

Max Gerstein, a UAE based financial adviser at the award winning Skybound Wealth Management, explores the critical importance of having a will, naming beneficiaries, and ensuring all legal matters are in order for expatriates in the UAE.

Why Having A Will Is Crucial

Local Laws And Sharia Application: In the UAE, if an expatriate dies without a will, their estate will be subject to Sharia law. This dictates specific inheritance shares that may not align with your wishes. For instance, male heirs typically receive double the share of female heirs, and the distribution is strictly regulated. This means your spouse and children won’t receive the assets you intended for them. Imagine your family being forced to leave their home because the property has been allocated to other heirs. Your wife and children facing eviction, causing them to move area, maybe even country.

Complexity Of Foreign Wills: A will from your home country is not guaranteed to be recognised or enforced in the UAE. The local courts prioritise UAE laws, and proving the validity of a foreign will can be a lengthy and complex process. This delay can cause immediate financial uncertainty and hardship for your loved ones during an already difficult time. For example, without access to your bank accounts, your family will struggle to pay for daily expense. Imagine your partner looking into their wallet and realising that the cash they have on hand is all they can use to support the family until the courts decide what to do. How long can they last?

Taking Measures To Safeguard Your Assets

Register A Will Locally: Non-Muslim expatriates can register their wills in Dubai and Abu Dhabi. This ensures that your assets are distributed according to your wishes and bypasses default Sharia inheritance rules. Without a locally registered will, your wife and children could lose their home if the property is allocated to other heirs who might not honour your intentions. This will result in your family facing the emotional trauma of relocating during a period of grief, disrupting their lives further.

Appoint Guardians For Minor Children: Imagine your children ending up with distant relatives or strangers. If you don't have a guardian appointed, this is what reality could look like. Is this something you want? Without appointing a guardian in your will, the local courts will decide on guardianship. Not you and not your partner.

Understand The Freezing Of Assets: Upon an expatriate's death, bank accounts and other assets are typically frozen until the local courts issue a Succession Certificate. This will lead to significant financial strain for surviving family members, as they won’t able to access necessary funds for daily living expenses, education, or emergencies if they don’t have their own account. Imagine your family not being able to pay for groceries, utilities, or school fees, this will force your spouse to take on multiple jobs or make drastic lifestyle changes to make ends meet.

Beneficiaries and Legal Preparations

Naming Beneficiaries: Ensure all your assets and investments, have clearly named beneficiaries. This helps streamline the transfer process and reduces potential legal disputes. If you don't, your assets will be distributed according to default legal rules, which won’t reflect your true intentions and could lead to disputes among your family. Such disputes can tear families apart and drain resources through prolonged legal battles. In the UAE, you can't name beneficiaries on bank accounts, so it's crucial to have separate accounts with money in them for each family member. If beneficiaries aren't clearly stated for your other assets, they can go to whoever and not your intended. While your family is mourning, do you want them fighting over ownership while trying to survive?

Speak To A Financial Adviser In The UAE

At Skybound Wealth, we understand the complexities faced by expatriates in managing their wealth and securing their legacy. We can work with you to understand your position and find the most suitable experts to help complete your will. Our team of experts can offer tailored solutions to help you navigate these challenges. With a strong focus on personalised financial planning, we ensure that your assets are protected, and your family's future is secure.

Here’s how I Can Assist You:

• Guidance on Wills and Beneficiaries: I can help you understand the importance of drafting and registering a will in the UAE, ensuring that all your assets, including investments, are covered and your beneficiaries are clearly named.‍
• Investment Planning: Do your investments have the appropriate beneficiaries? Do you understand your inheritance tax liabilities? Do you have life insurance? If you missed the importance of having a will, how many other things haven't you done that mean you are underprepared? I provide strategic advice on managing your investments to align with your long-term goals and legal requirements.‍
• Comprehensive Financial Planning: From estate planning to wealth management, I offer a full range of services to ensure your financial security and peace of mind.

Book An Appointment Now

For expatriates in the UAE, having a will and ensuring all legal matters are in order is not just about protecting assets—it's about providing peace of mind and security for your loved ones. By taking proactive steps and consulting with experts, you can ensure that your legacy is preserved, and your family is well cared for, no matter what the future holds. Do you want to leave behind a positive or a negative legacy? For more information and personalised advice, book a meeting with a qualified financial adviser now.