Probate Processes in DIFC and ADGM

UNDERSTANDING PROBATE PROCESSES IN DIFC AND ADGM

Probate Processes in DIFC and ADGM – Intro

Starting by the end, the probate processes in DIFC and ADGM is crucial to understand which forum to choose. Non-Muslim expatriates in the UAE often turn to the ADGM (Abu Dhabi Global Market) and DIFC (Dubai International Financial Centre) Wills frameworks to ensure their assets are distributed according to their wishes. Both jurisdictions provide unique processes for probate, designed to complement the UAE’s local legal systems.

This article explores and compares the probate procedures in ADGM and DIFC, offering insights into their practical application.

Key Features of ADGM and DIFC Wills

  • ADGM Wills:
    • Administered by the ADGM Courts, covering assets across the entire UAE but with protocols only with Abu Dhabi Judicial Department.
    • Designed to ensure non-Muslims can avoid the application of Sharia law for inheritance.
    • Flexible for assets such as real estate, bank accounts, investments, and guardianship provisions.
  • DIFC Wills:
    • Administered by the DIFC Courts, primarily covering Dubai and Ras Al Khaimah due to the protocols of enforcement with both Emirates.
    • Provides specific options for real estate, financial assets, or full estate Wills.
    • Established for ease of execution in Dubai and RAK-centric cases.

Probate Processes in DIFC and ADGM Overview 

  • ADGM Probate Process:
    1. Will Registration: Registered with the ADGM Wills Registry for Non-Muslims.
    2. Filing for Probate: Executors file an application with the ADJD upon the testator’s death. ADGM does not handle probate processes.
    3. Verification: ADJD Courts validate the Will and issue a Grant of Probate.
    4. Asset Distribution: Executors use the grant to access and distribute UAE-based assets.
    5. Guardianship (if applicable): ADGM Courts handle the appointment of guardians for minors.
  • DIFC Probate Process:
    1. Will Registration: Registered with the DIFC Wills Service Centre.
    2. Filing for Probate: Executors apply to the DIFC Courts upon the testator’s death.
    3. Verification: DIFC Courts verify documents and issue a Grant of Probate.
    4. Asset Distribution: The grant is used to manage and transfer Dubai and Ras Al Khaimah assets.
    5. Guardianship (if applicable): DIFC Courts oversee guardianship provisions for minors.

Comparison: ADGM vs. DIFC

 

Aspect ADGM Wills DIFC Wills
Jurisdiction Covers all UAE assets Covers all UAE assets
Testators Employees of ADGM Anyone with assets or kids in UAE
Probate No, Through ADJD Yes, In DIFC
Registration Cost AED 950 ADJD Notary + USD 100 ADGM Court AED 10,000 (single); AED 15,000 (mirror) – Full Wills
Process Duration Streamlined with federal court support. Streamlined for Dubai-centric assets.
Recognition Direct protocols with Abu Dhabi Judicial Department Dubai and RAK authorities, with additional steps elsewhere.
Guardianship Comprehensive provisions included. Comprehensive provisions included.

 

Considerations for Choosing a Will Framework when looking into the Probate Processes in DIFC and ADGM

  • DIFC Wills: Ideal for individuals with assets concentrated in Dubai or Ras Al Khaimah, offering faster enforcement for Dubai-based banks and authorities.
  • ADGM Wills: Better suited for those with assets in Abu Dhabi.

What if assets are mixed in Dubai and Abu Dhabi? How could my heirs enforce my will in Abu Dhabi?

Enforcing a DIFC Grant of Probate in Abu Dhabi involves navigating the UAE’s judicial system under protocols that govern cross-jurisdictional enforcement. While DIFC judgments and probate orders are directly enforceable in Dubai and Ras Al Khaimah due to local agreements, enforcement in Abu Dhabi requires additional steps through the federal court system. Here’s how the process works:

Legal Framework for Enforcement

  • Judicial Authority Law (Dubai Law No. 12 of 2004):
    Establishes the enforceability of DIFC Court judgments within Dubai Courts but requires additional procedures for other Emirates.
  • UAE Federal Civil Procedures Law:
    Governs the enforcement of judgments across Emirates, ensuring recognition and execution of DIFC judgments in Abu Dhabi through local courts.
  • Protocol of Enforcement Between Courts:
    DIFC judgments and orders, including grants of probate, are enforceable across the UAE under the federal judicial framework.

Steps to Enforce DIFC Probate in Abu Dhabi

  1. Obtain a Certified Copy of the DIFC Probate Grant:
    • The executors must secure an official, certified copy of the DIFC grant of probate, including all supporting documents.
  2. Translate Documents into Arabic:
    • UAE courts outside DIFC require all documents, including the grant of probate, to be translated into Arabic by a certified legal translator.
  3. File an Enforcement Application in Abu Dhabi Courts:
    • Executors file the translated DIFC probate order and supporting documents with the Abu Dhabi Judicial Department (ADJD).
    • The application should include proof of the DIFC judgment’s finality and compliance with public policy.
  4. Procedural Review by Abu Dhabi Courts:
    • Abu Dhabi Courts conduct a procedural review to ensure:
      • The DIFC judgment complies with UAE public policy.
      • It does not conflict with Sharia law principles.
      • Proper jurisdiction was observed in the DIFC proceedings.
  5. Issuance of Enforcement Order:
    • Once the procedural review is completed, the Abu Dhabi Courts issue an enforcement order, enabling the executors to act on the grant of probate (e.g., accessing bank accounts, transferring assets).

Challenges and Considerations

  • Time Delays:
    The procedural review can take additional time compared to enforcement in Dubai or Ras Al Khaimah, where direct recognition protocols exist.
  • Sharia Law Compliance:
    Abu Dhabi Courts may raise issues if the Will’s provisions or the grant of probate contradict Sharia principles (e.g., unequal distribution of assets among children). Executors should prepare to address any concerns proactively.
  • Legal Representation:
    Appointing a lawyer familiar with Abu Dhabi Court procedures and DIFC probate law is advisable to navigate the enforcement process effectively.

Practical Example

Imagine a non-Muslim expatriate has assets in both Dubai and Abu Dhabi. Upon their passing:

  • The DIFC probate process is initiated for all UAE assets.
  • For Abu Dhabi-based assets (e.g., bank accounts or real estate), the executor applies to Abu Dhabi Courts to enforce the DIFC probate grant.
  • Abu Dhabi Courts issue an enforcement order after procedural compliance, allowing the executor to distribute the assets in accordance with the Will.

Conclusion to Probate Processes in DIFC and ADGM

Both ADGM and DIFC provide robust probate mechanisms for non-Muslims in the UAE. The choice between the two depends on the geographic location of the assets and personal priorities, such as speed, jurisdictional reach, and cost.

While enforcing a DIFC probate grant in Abu Dhabi requires additional steps, the process is well-established under UAE laws. Executors should ensure procedural compliance and seek expert legal advice to handle any jurisdictional nuances.

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We hope this post provides clarity when considering courts wills options in the UAE. Should you have any questions about this topic or related matters, please don’t hesitate to reach out.

For more insights, explore all our publications in English and watch informative videos featuring our Managing Partner, Maria Rubert.

Disclaimer: The content of this post is for informational purposes only and does not constitute legal advice.