Advice on Wills -- Dividing Inheritance

The protection of one’s wealth and legacy are the least understood aspect of life in the UAE. In the absence of a Will, transferring your assets after death could take longer and be more expensive. Whether you’re a Muslim national or non-Muslim expat, having a Will in place, with the help of a legal consultant, is arguably one of the most important things you can do for yourself and your loved ones. It can communicate the arrangements you want for your funeral, how you wish your estate to be distributed, or name a guardian for your minor children.

The UAE’s inheritance law is broad and accommodates everyone irrespective of their religion and nationality. If a non-Muslim expat dies, the law of the deceased’s home country can be applied. For Muslim nationals, matters of inheritance will be guided by the Sharia law. 

 

Governing Laws and Succession

As per the law, two types of heirs are recognized, namely, sharers and residuary. A sharer refers to an individual qualified for a specific offer in the deceased’s property. A residuary is someone entitled to an estate’s residue (by himself, though another, and along with another). The sharers can be any of the following -- husband, wife, daughter, daughter of a son, father, paternal grandfather, mother, grandmother on the male line, full sister, uterine sister, and uterine brother.

While the principal source of inheritance law is Shariah, it is also guided by a few Federal laws, including (1) Federal Law Number 5 of 1985 concerning the Civil Transactions Code or Civil Code, and (2) Federal Law Number 28 of 2005 concerning the Personal Status Law and (3) Federal Law Number 25 of 2017 concerning inheritance, Wills, and probate for non-Muslims living and working in the Emirate of Dubai. 

 

Division of Estate among Heirs

Transferable rights include all the rights pertaining to property, usufruct, and other dependent rights like outstanding debts. It shall also cover the obligations of the deceased, which can be paid off from his estate. Whatever is the residue after making payments shall be distributed among the heirs. A Will attorney shall ensure that everything is in order and handle issues related to documents. For Muslims, the division of estate shall be guided by the following conditions:

1. 1/2 of the property will be given to:

• The husband, if the wife has no descendant
• The daughter, if the deceased has no other children;
• The daughter of the son or his descendants,
• The sister, if she has no brother or sister, a successor of the deceased, father or grandfather;

2. 1/4 of the property will be given to:

• The husband, if the wife has a descendant;
• The wife, if the husband has no descendant.

3. 1/8 of the property will be given to:

• The wife, if the husband has no successor.

4. 2/3 of the property will be given to:

• daughters, if the deceased has no son
• daughters of son, or his successors, if the deceased has no son, grandson of the same degree;
• germane sisters, if there is no germane brother, successor, father, or grandfather;
• consanguine sister, if there is no consanguine brother, germane brother or sister, a successor, father or grandfather.

5. 1/3 of the property will be given to:

• The mother, if the deceased has no successor
• Mother’s children, if there is no successor, the property shall be divided equally;
• The paternal grandfather, if he concurs the estate of germane or consanguine brother and in the absence of forced heirs;

6. 1/6 of the property will be given to:

• The father upon concurring with succeeding descendent;
• The paternal grandfather, if the deceased has a successor if the forced heir is present if his share is less than 1/6 or 1/3 of the remainder
• Mother, along with the successor of deceased
• Grandmother, if she is not ineligible for an inheritance;

 

Non-Muslims living in the UAE are allowed to draft a Will and divide the property according to their Will as per the Personal Law. But if a non-Muslim die’s without a Will, the courts shall distribute the estate of the deceased according to Shariah’s principles.

Article 17(5) of the Civil Law states that the UAE law will apply to the Wills of non-Muslim nationals no matter where their property is located. The heirs can also request that his home country’s laws be applied as per Article 1(2) of the Personal Law. They must submit the duly legalized death certificate, last domicile of the deceased, and duly authorized Will of the deceased. However, there may be restrictions when it comes to dealing with the assets located in the UAE.

Both Muslim and non-Muslim nationals should appoint a legal consultant specialized in drafting Wills to protect themselves and their assets. Type in ‘law firm near me’ in your search engine or book an appointment with the experts at Motei & Associates! Get advice on how to prepare and register a Will that is specifically designed for your needs. Call them at +971 4 435 5959.

Can Majority Rule in Selling Inherited Property?

 Any legal consultant will agree that inheriting a property can be a very sensitive issue. A deceased person will often leave a share of an estate to multiple heirs, which can only create a burden. Regardless of whether they inherit a vast empire or a modest home, the beneficiaries must decide what to do with the property -- live in it, put it up for rent, or sell it. Disputes could arise amongst family members, particularly if the property holds a sentimental value to some beneficiaries but not to others.

Every local court in the UAE handles property disputes differently, but in most cases, the majority does not rule. If beneficiaries do not arrive at a common conclusion, it is up to the courts to decide whether one party has the legal grounds to force a buyout or a sale. As such, it is highly recommended to include an estate administrator in a Will or someone who will be responsible for selling the property and equally distribute the net proceeds among the beneficiaries. It means no one will own the property; instead, they will receive a cash sum equivalent to their share. It’s the best way for loved ones to avoid costly and time-consuming real estate disputes.

Solutions to Co-ownership Conflicts

If a dead loved one entrusted property to several individuals, they would be considered co-owners as per inheritance law. When it comes to a joint property, all beneficiaries have equal ownership rights, but individual shares are not always defined with separate boundaries. This is the foremost reason for feuds and disagreements amongst relatives. Each beneficiary might want to control the property differently. It would put non-residents in a vulnerable position as they are not physically present to protect their interests. It would be a journey filled with tedious legalities.

If one of the owners want to sell, but the other co-owners don’t, a lawsuit for ‘partition’ can be filed. It refers to physically dividing the property between beneficiaries. However, the partition can only work well for some properties, such as farmland acreage. If the property in question is a residential home or commercial building and can’t be partitioned, one of the parties can request the courts to force a sale. The net sale proceeds will be divided among the beneficiaries equally or according to their home percentage ownership. The courts can order partition on applying a single beneficiary, even if the majority doesn’t want to sell.  

A co-owner who wishes to keep the property but is on the receiving end of the partition is a good option to buy the other co-owners out. In legal terms, ‘partition by appraisal.’ This arrangement demands that you have the money to buy out the other co-owners of their percentage ownership. In this case, an appraiser should be appointed to determine a fair price for the property and top law firms to file the legal paperwork. If all parties couldn’t agree on a buyout, the courts may proceed with a third-party sale.

Disputes on an inherited estate in the UAE could take a year or more to resolve without the help of experienced property attorneys. If you have questions concerning your rights involving co-owned real estate, start looking for a ‘law firm near me’ or book an appointment with Motei & Associates! Call them at +971 4 435 5959.