Introduction: A Tragic Event Underscoring the Imperative of Estate Planning
This sorrowful occurrence brings to the forefront an essential lesson for individuals of every age, profession, social standing, nationality, and marital status: the indisputable importance of meticulous estate planning in the face of life’s unforeseen events.
Although we come across such stories of life unpredictability in the news and films and they do serve as a reminder of our responsibility to our families, we frequently tend to dismiss the likelihood of experiencing similar events ourselves. Yet, this incident illuminates the critical necessity of comprehensive estate planning, a legal strategy designed to ensure the security and welfare of our loved ones in times of unexpected calamity.
Case Strategy
Our firm was retained by the sole heir of the deceased to facilitate the legal identification and transfer of the decedent’s assets in accordance with the UAE and the European Law of the deceased, in the absence of a valid will.
This complex task was further compounded by the lack of detailed information on the deceased personal bank accounts, property location(s) in the UAE, ownership status of movable and non-movable assets, existing mortgages or loans, and any personal debts or liabilities of the deceased.
For a non-Muslim resident in the UAE, who dies without a will and has no direct family members in the country, with only a sibling as a successor, the legal roadmap to claim assets such as real estate, bank accounts, cars, and personal possessions involves several specific steps:
- Procurement and Attestation of Death Certificate:
- Action: Secured the official death certificate from the country of the deceased’s passing and proceeded with its attestation by the UAE embassy therein and the UAE’s Ministry of Foreign Affairs.
- Purpose: This is a foundational requirement to establish the fact of death legally and is essential for all subsequent legal procedures related to end of employment payout and insurance.
- Application for a Succession Certificate in Civil Court:
- Action: Filed an application in the UAE civil court for a succession certificate, delineating the familial relationship of our client (the sibling) to the deceased.
- Purpose: The succession certificate is crucial for legal recognition as the heir and is necessary for the lawful claim and distribution of the deceased’s assets within the UAE.
- Legal Representation and Executor Appointment:
- Action: Our law firm was appointed as the legal representative or executor of the deceased’s estate, as per the court’s procedures.
- Purpose: To manage the estate, settle debts, and ensure the proper distribution of assets in accordance with UAE law and the applicable foreign laws.
- Estate Claim Submission:
- Action: Submitted a comprehensive claim to the court, detailing the assets in question and supported by all requisite legal documents.
- Purpose: To legally substantiate the heir’s claim to the estate and facilitate the court’s processing and issuance of the necessary legal directives for asset distribution.
- Invocation of Home Country Law:
- Action: Provided documentation from the heir’s home country, specifying the applicable inheritance law, to argue for its application to the distribution of the deceased’s UAE-based assets.
- Purpose: UAE law allows non-Muslim expatriates’ estates to be governed by their home country’s laws, ensuring a familiar and possibly more favorable legal framework for asset distribution.
- Debt Settlement and Clearance:
- Action: Coordinated with creditors for the settlement of any outstanding debts owed by the deceased, securing clearance certificates thereafter.
- Purpose: Clearing debts is legally required before estate distribution to prevent legal challenges and ensure a smooth transfer of assets to the heir.
- Asset Distribution Process:
- Action: Upon receiving the succession certificate and clearing all debts, facilitated the legal distribution of assets, including real estate, bank funds, vehicles, and personal possessions.
- Purpose: To ensure that assets are transferred to our client, the legal heir, in accordance with the succession certificate and applicable laws, thereby concluding the legal claim process effectively.
- Transfer of Assets:
- Action: Engaged with the Land Department, Banks, and the Traffic Department with the necessary legal documents to execute the transfer of real estate, funds, and vehicles, respectively.
- Purpose: The final step in securing our client’s legal ownership of the deceased’s assets, requiring meticulous compliance with each department’s transfer procedures.
Conclusion
This legal roadmap not only outlines the requisite steps for the settlement of an estate in the UAE, but also aims to enlighten the audience about the detailed and procedural nature of such endeavors.
Understanding the legal foundations of each step is essential for heirs to proceed with clarity and assurance and understanding as to the time frame for the end-to-end process, especially in the absence of a will.
Each step in the estate settlement process can be time-consuming, often requiring extensive communication and coordination with various government offices. The timeframe for completing each step can vary significantly, depending on the responsiveness of these establishments, and the completeness of the required documentation, which often needs to be issued from relevant legal entities abroad and legalized for use in the UAE. Delays are not uncommon, and the overall process can extend over several months, if not longer.
For non-Arabic speakers or those unacquainted with the UAE’s legal and administrative systems, these challenges are compounded. They must navigate a legal landscape that may be vastly different from their home country’s, all while dealing with language barriers and cultural nuances in a moment of morning. This situation underscores the value of having a knowledgeable legal team that can provide not only the necessary legal services but also cultural and linguistic interpretation, ensuring a smoother, more understandable process for the client.
Given the potential for complexity, lengthy timelines, and the significant costs associated with legal and administrative fees, the importance of estate planning, or at least registering a “will” cannot be overstated. A well-drafted and registered will in the UAE provides a clear directive on the distribution of all assets, This foresight can significantly reduce the legal burden on heirs, streamlining the inheritance process and safeguarding against the unpredictable and often burdensome legal procedures following an unexpected demise.
Thus, we strongly advise clients, especially expatriates residing in the UAE, to consider the preparation and registration of a will as a critical component of their financial and legal planning. Doing so not only secures one’s legacy according to one’s wishes, but also provides peace of mind to the loved ones during a time of loss, allowing them to mourn without the added stress of navigating a complex legal maze.
