Common Misconceptions About Wills in the UAE
Many UAE residents believe myths about Wills that prevent them from proper estate planning. These misconceptions cause families unnecessary hardship and financial loss. According to DET’s Family Businesses Guidebook, poor succession planning and lack of awareness create serious problems.
The Middle East faces AED 3.67 trillion in intergenerational wealth transfers over the next decade. Additionally, 90% of UAE private companies are family-owned businesses, contributing 40% of the country’s GDP. Therefore, proper Will planning affects both families and the broader economy.
Misconception 1: Sharia Always Applies to Everyone
Many people believe Sharia inheritance rules apply automatically to all UAE residents. This misconception stops non-Muslims from planning their estates properly.
The Reality:
Non-Muslims can opt out of Sharia inheritance completely through proper Will registration. The Dubai guidebook explains that non-Muslims can register Wills through DIFC Wills Service or the Dubai Courts. These registrations explicitly exclude Sharia application to your estate.
Muslims must follow Sharia inheritance principles. However, even Muslims have planning options within Sharia frameworks. For instance, lifetime gifts and specific bequests within allowed limits provide some control.
Why This Matters:
Believing you have no control stops you from taking action. Meanwhile, your family might face inheritance outcomes you never wanted. Therefore, understanding your actual options enables proper planning regardless of religion.
Misconception 2: Wills Are Unnecessary for Small Estates
Some people think Wills only matter for wealthy individuals with large estates. They assume small asset holdings do not need formal estate planning.
The Reality:
Intestate succession without a Will creates problems regardless of estate size. The guidebook emphasizes that the absence of succession planning leads to default Sharia rules or civil law provisions. This happens whether you own one property or dozens.
Small estates still require court processes, asset freezes, and distribution procedures. Additionally, families face the same delays and complications. Furthermore, legal fees might consume a larger percentage of smaller estates.
Why This Matters:
Every estate benefits from clear instructions. Your family needs to know who inherits what without court intervention. Moreover, guardianship for minor children requires a Will designation regardless of wealth.
Misconception 3: Non-Muslims Have No Estate Planning Options
Many expats believe the UAE offers them no control over asset distribution. They assume Sharia rules override everything.
The Reality:
Non-Muslims have extensive estate planning options according to the Family Businesses Guidebook. These options include registered Wills excluding Sharia, trust structures, foundations, and lifetime transfers.
Federal Decree-Law No. 37 of 2022 and related waqf laws provide frameworks for compliant succession structures. Additionally, non-Muslims can request that their national laws apply instead of UAE defaults.
Why This Matters:
Believing you lack options means never exploring available solutions. Meanwhile, proper planning protects your spouse and children according to your actual wishes. Therefore, understanding your options empowers effective estate planning.
Misconception 4: Wills Only Cover Property
Some people think Wills only distribute real estate and ignore other assets. They assume bank accounts and businesses pass automatically to the family.
The Reality:
Comprehensive Wills in the UAE address all asset types. This includes bank accounts, investments, business interests, personal possessions, and intellectual property. Additionally, Wills name guardians for minor children and specifies executors.
Without clear instructions, all assets freeze during probate. Courts must determine rightful ownership for everything from bank accounts to jewelry. Therefore, comprehensive Wills covering all assets prevent these problems.
Why This Matters:
Incomplete Wills create the same problems as no Will at all. Your family might access some assets but not others. Meanwhile, critical business interests might freeze and lose value during legal proceedings.
Misconception 5: Wills Never Need Updates
Many people create Wills once and never review them again. They assume Wills remain valid forever without changes.
The Reality:
Life changes require Will updates to remain effective. Marriage, divorce, births, deaths, and asset changes all affect estate planning. Additionally, UAE laws evolve and might require Will modifications.
The Family Businesses Guidebook recommends regular review of estate structures. Outdated Wills might name deceased executors or divorced spouses. Furthermore, they might miss assets acquired after drafting.
Why This Matters:
Old Wills create problems when circumstances change significantly. Your wishes from ten years ago might not match current family situations. Therefore, regular updates ensure that your Wills reflect current realities.
Plan Your Estate Properly
These misconceptions prevent effective estate planning across the UAE. Understanding the realities helps you protect your family through proper Wills in the UAE. Professional advisors specializing in UAE Wills ensure you avoid these common mistakes.
Whether you need basic estate planning or complex business succession structures, expert guidance clarifies your options. This support helps you create comprehensive plans that actually work when your family needs them most.