BEST WILL IN THE UAE – DIFC OR ADJD?

Introduction to the Best Will in the UAE

The best will in the UAE will depend on the personal circumstances of the testator and testator’s assets. Many of our clients end up choosing between DIFC and ADJD wills. We opted crucial to prepare a very specific publication addressing their main differences.

In a country as diverse as the UAE, estate planning is a crucial consideration for residents and expats alike, particularly when navigating the legal complexities that arise from the intersection of different legal systems. With a significant non-Muslim population, the UAE has developed specialized legal frameworks to accommodate expatriates’ wishes regarding the distribution of their assets upon death. Two of the most prominent options available for non-Muslim residents are the DIFC Wills under the Dubai International Financial Centre (DIFC) and the ADJD Wills offered by the Abu Dhabi Judicial Department (ADJD).

While both frameworks aim to provide clarity and legal certainty for non-Muslims, they operate under distinct legal jurisdictions and offer different benefits and limitations depending on where a person’s assets are located and the laws they wish to apply to their estate. DIFC Wills are tailored to non-Muslims in Dubai and Ras Al Khaimah, operating under a common law system influenced by English law, whereas ADJD Wills serve both Muslims and non-Muslims across Abu Dhabi and other emirates under a UAE federal civil law framework.

This publication aims to provide a comprehensive comparison between DIFC and ADJD wills, highlighting their key differences in jurisdiction, legal applicability, asset coverage, and probate procedures. By understanding these distinctions, individuals can make informed decisions that align with their personal, familial, and financial needs, ensuring that their estate planning reflects their wishes and provides security for their loved ones.

Jurisdiction and Applicable Law

DIFC Wills:

The DIFC Wills are registered and executed under the Dubai International Financial Centre (DIFC) Courts, which operate independently from the UAE’s federal courts. The DIFC courts apply common law, based on English law, which gives non-Muslims more freedom in drafting wills without having to conform to Sharia principles. DIFC Wills are valid for non-Muslims with assets in UAE and worldwide (upon their expansion in 2019, initially only Dubai and Ras Al Khaimah assets).

The DIFC Wills Service Centre allows non-Muslim expats to freely distribute their UAE assets as per their wishes, rather than defaulting to the UAE’s inheritance laws. The common law system of the DIFC allows for flexibility, enabling the testator to choose any beneficiary without the Sharia constraints.

ADJD Wills

These wills fall under the Abu Dhabi Judicial Department (ADJD), which is part of the federal judicial system of the UAE. The ADJD wills are valid for residents with assets in Abu Dhabi and the other six emirates of the UAE (excluding ideally Dubai and Ras Al Khaimah, which have separate legal systems). While the ADJD operates within the UAE’s broader legal framework, it has implemented specific provisions for non-Muslims to allow them more control over their estate.

While Sharia law applies by default to inheritance for Muslims, non-Muslims registering wills with the ADJD are allowed to apply their home country’s laws or by default the new rules under Federal Law No. 41 of 2022 on Personal Status Law. However, there is no complete exemption from the UAE’s Sharia-based legal system. For Muslims using ADJD wills, the UAE federal laws dictate inheritance, which includes the enforcement of Sharia inheritance principles (automatic distribution among family members). Non-Muslims have the choice to opt out of Sharia distribution, but this must be explicitly stated in their will.

Who Can Use Them – Best Will in the UAE

DIFC Wills

DIFC wills are available only to non-Muslims. This service offers a high degree of flexibility for non-Muslims who wish to avoid the rigid inheritance rules of Sharia law.

Non-Muslim expatriates from any country can use the DIFC Wills Service. This makes it a convenient option for expats living in UAE who want their estate handled according to their home country’s inheritance practices rather than the default UAE laws.

ADJD Wills

The ADJD Wills service is open to both Muslims and non-Muslims. Non-Muslims can register wills that allow them to apply their country’s inheritance laws, but Muslims will be subject to Sharia principles when it comes to inheritance, even if they register a will. ADJD wills are also available for expats and UAE nationals across Abu Dhabi and the other emirates.

Process and Formalities

DIFC Wills

The registration process for DIFC Wills is straightforward, but it requires non-Muslim expats to personally appear before the DIFC Wills Service Centre (nowadays electronically). It involves submitting the necessary documentation, such as identity proof, and the will itself. The DIFC also allows for the creation of different types of wills:

1. 1. 1. Full Will (covering all types of assets, including real estate, shares, and personal possessions).
      2. Guardianship Will (which only deals with the appointment of guardians for minor children).
      3. Property Will (covering up to five real estate assets in Dubai or Ras Al Khaimah).
      4. Financial Assets Will (covering up to ten bank or brokerage accounts).
      5. Business Owners Will (covering shareholdings in up to five separate businesses).

Wills must be drafted carefully to ensure they comply with the DIFC Wills Service Centre’s guidelines. Additionally, all DIFC Wills must be registered and notarized, and the will may be subject to probate proceedings under DIFC laws if contested.

ADJD Wills

ADJD wills are typically registered with the Abu Dhabi Judicial Department, and the process can be done either in person or through authorized legal representatives. The process requires the submission of valid documents and proof of residency, as well as the registration of the will.

For non-Muslims, ADJD wills must clearly state that the testator wishes to opt-out of the default Sharia inheritance system and instead follow their home country’s laws. Wills for Muslims do not have this option, as Sharia law will automatically apply to the distribution of assets upon death. Wills for non-Muslims can cover all assets, including those outside Abu Dhabi.

Asset Coverage

DIFC Wills

DIFC Wills are designed to govern the distribution of assets located inside or outside the UAE. This includes immovable property (such as real estate), movable property (such as bank accounts, vehicles), company shares, and other types of assets.

A will registered under the DIFC can cover real estate, financial assets, personal belongings, business shares, and appoint guardians for minor children.

ADJD Wills – Best Will in the UAE?

The ADJD wills can be applied to assets in Abu Dhabi and other emirates, including properties, bank accounts, and other possessions. Unlike DIFC wills, which are limited to Dubai and Ras Al Khaimah, ADJD wills can cover all seven emirates of the UAE, including assets held in Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, and Fujairah.

ADJD wills can be broad and cover immovable property, movable assets, bank accounts, and shares in companies. For non-Muslims, it is especially useful if the person has a mix of assets across different emirates.

Legal Proceedings and Probate for the Best Will in the UAE

DIFC Wills – Best Will in the UAE?

In the event of death, DIFC Wills are subject to the DIFC Court’s probate process. This involves a relatively quick and efficient legal process under common law, ensuring the assets are distributed according to the will without interference from Sharia principles. The DIFC Courts are known for their efficient handling of probate matters for non-Muslims.

ADJD Wills

The probate process for ADJD Wills is conducted through the Abu Dhabi judicial system. For Muslims, the courts will distribute assets following Sharia law regardless of what the will stipulates. Non-Muslims can request the courts to apply the inheritance laws of their home country, but this must be explicitly stated in the will. The process is more closely tied to UAE civil law, which may involve more complex legal steps.

Summary of Key Differences – Best Will in the UAE

These two systems provide residents and expats with flexibility based on their preferences and locations of assets, ensuring more control over their estate planning.

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We hope this post will help you understand the options when considering where to register a will in the UAE and remain available for any questions regarding this post of general application. Although costs indicated may vary they should continue to allow to compare their pricing and offering. It is recommended to double check at the time of initiating actions or starting to think about initiating actions.

For more information published in English you can visit all our publications at this link as well as the videos in English of our Managing Partner Maria Rubert.

*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the options when considering where to register a will in the UAE.