What Not to Put in Your Will?

Making a Will is highly encouraged by international law firms in Dubai. Under the Law of Inheritance, if a deceased expat does not have a Will, the UAE courts will decide the distribution of your assets. A Will is a legal document that secures and distributes your assets according to your wishes. It makes the process of arranging everything on a person’s death more convenient for the surviving loved ones. However, specific provisions don’t belong in your Will, as they cannot be enforced under the law. 

 

1. Properties in joint tenancy or a living trust

 

Some types of properties should not be included in a Will because they carry independent rules that govern what happens after death. For example, with a joint tenancy property, the law automatically grants the right of survivorship to the joint tenant. It means when you die, your share of the property will be passed on to the surviving joint tenant, regardless of what’s stated in the Will. It would also be inconsistent to include an already delegated property to someone by a living trust. Such property automatically goes to the beneficiaries and will be managed by the trustee. 

 

2. Proceeds that have a beneficiary

 

Legal consultants in Dubai would discourage including life insurance and retirement plan proceeds in your Will. In life insurance plans, proceeds automatically go to the beneficiary, often the spouse or minor children. The same procedure applies to retirement plan proceeds or money from pension, stocks, and bonds held in beneficiary and payable-on-death bank accounts. These plans already contain a section for you to list your beneficiary. 

 

3. Burial or funeral plans and instructions 

 

Your Will isn’t the best place for you to list your funeral or burial preferences. These arrangements are among the first matters of business after someone dies. In most cases, settling the estate doesn’t happen until after the funeral. Thus, family members may not even notice your funeral wishes and may not be carried out. A good alternative is to talk with your loved ones ahead of time regarding these matters. So, when the time comes, they can arrange for services according to your plan. 

 

4. Care for a special needs’ person or pets

 

While it is possible to arrange care instructions for a person with special needs, a Will may not be the best place to do it. Lawyers in Dubai would suggest setting up certain types of trusts (i. e. special needs trust) to address the management of a loved one’s special needs. This also applies to pets, as they don’t have the legal capacity to own a property. You can either set up a pet trust fund or give your pet to someone you trust. You can also leave that person money or property for care expenses.    

 

Understanding the correct information to put into a Will can be confusing. Motei & Associates can make the experience of setting up your will hassle-free. They can help you register a Will that anticipates different circumstances, no matter which nationality and religion you belong to. When it comes to expat Wills Dubai is the right place to be! Call +971 4 435 5959 to book an appointment with Motei & Associates today. 

ARE YOU IN A LEGAL DISPUTE? OR WONDERING IF YOU HAVE GROUNDS TO FILE A LAWSUIT? 

Check out some informative articles that may help you:

• Renewing Tenancy Contract in Dubai
• Resolve Property Disputes in Dubai
• Real Estate Agent vs Real Estate Lawyer
• Is it advisable to engage your lawyer when selling a property?
• Thinking of buying an off-plan property? Get a lawyer

Motei and Associates has the finest real estate lawyers Dubai has seen, offering disputes resolution and general corporate, commercial transactional services. Give them a call today at +971 4 435 5959. 

Who Owns Lost Property?

A property is considered to be “lost” if the rightful owner has parted with it involuntarily or is ignorant of its location. It is a current issue that any attorney in Dubai is familiar with. The good news is, if you have lost property in the UAE, then there’s a great chance you’ll get it back. His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued Law No (5) of 2015 governing lost and abandoned property in Dubai. 

Article (2) of Law No (5) of 2015 defines lost property as the monies and properties that are “acquired by law, has a value, was lost by its lawful owner without deliberate intention, and found within the emirate of Dubai.” The law stipulates that the finder of lost property must surrender it to the authorities within 48 hours. More so, the finder may not claim ownership and may not dispose of such property. This means keeping the property to yourself is subject to criminal liability and punishment. 

 

The law also prescribes the duties and powers of Dubai Police when it comes to implementing the provisions, including receiving reports on lost properties, keeping lost-and-found properties in proper places, and maintaining records of the property. They must document the finder’s information, a detailed description and condition of the property, and other relevant data. Legal firms in Dubai support the issuance of Law No (5) of 2015 as it is aimed to regulate the procedures applied on lost properties and encourage people to return lost properties to their owners.     

 

According to the law, the finder of lost property is entitled to receive 10% of the lost property’s total value up to a maximum of AED 50,000 as a form of reward. It is payable whether the original owner claims the property or not. The finder may also claim the entire property if it is not reunited to its original owner within one year of handing it over to the Police. BUT there are certain conditions to claiming it. The finder still has to “maintain it in good condition and return it to the original owner upon his request”. 

 

A lost property continues to be owned by the person who lost it. When another person finds lost property, he is entitled to possession against everyone, with the exception of the original owner. However, rules and conditions may be different for mislaid (when an owner forgets where the property has been placed) or abandoned (when an owner relinquishes all rights) properties. It is important to consult a property attorney for these types of cases. 

 

You can rely on the experts of Motei & Associates to help you with any legal concerns. They have over a decade of local and regional experience in several practices, from commercial transactions and corporate advisory to dispute resolution and wills. If you need a real estate lawyer, Dubai has the best! Book an appointment with Motei & Associates today by calling +971 4 435 5959. 

ARE YOU IN A LEGAL DISPUTE? OR WONDERING IF YOU HAVE GROUNDS TO FILE A LAWSUIT? 

Check out some informative articles that may help you:

• Renewing Tenancy Contract in Dubai
• Resolve Property Disputes in Dubai
• Real Estate Agent vs Real Estate Lawyer
• Is it advisable to engage your lawyer when selling a property?
• Thinking of buying an off-plan property? Get a lawyer

Motei and Associates has the finest real estate lawyers Dubai has seen, offering disputes resolution and general corporate, commercial transactional services. Give them a call today at +971 4 435 5959. 

Can a special power of attorney sell a property?

Whether you’re working full time or managing your own business, it can be difficult to find time to sell and manage your properties. If you’re having a hard time managing your properties, there are plenty of Dubai law firms that specialize in handling the paperwork for real estate properties.

What is a special power of attorney?

Unlike the general power of attorney, a document that authorizes lawyers in Dubai to act on behalf of the principal to process different transactions such as buying, selling, or managing real estate properties, a special power of attorney only grants the lawyers specific power to act on a certain situation. SPOA is often used for limited transactions or and other dealings that must be completed urgently.

Can you use SPOA to sell a property?

Usually, a property attorney will utilize an SPOA for administering properties, trademarks, granted lands, and tenancy disputes. However, an SPOA can be used to sell the principal’s or grantor’s property, as long as it meets the specific requirements set by the law.

What are the requirements or grounds for allowing the use of SPOA when selling properties?

For a POA to be valid, it must meet the following specifications:

• The document must be prepared in Arabic or English, or both. If the document's contents are written in English or another language, a legal translation in Arabic must be provided and legalized at the Notary Public in the UAE. If there are any inconsistencies in the translation of the document, the Arabic translation will be followed.
• The Notary Public must notarize the document in the UAE.
• When the SPOA is entered in or from another country, it must be authenticated by the UAE Embassy and attested in the ministry.
• The specific purpose of the SPOA must be stated clearly in the document, including the details about the property you are selling.

When selling properties, especially using special power of attorney, it is important to note that real estate agents can’t fulfil these transactions, instead, it’s better to get help from a real estate lawyer in Dubai to avoid any legal issues in selling your properties.

If you need a special power of attorney in selling your properties, Motei & Associates can help. For more details, you may also visit their office website at https://motei.com/

Do Commercial Property Insurance Policies Cover COVID-19?

Due to the government’s business impact of COVID-19 control measures, companies are looking to their property insurance policies for potential recovery options for ongoing losses. Business owners should be aware that the extreme stresses caused by inevitable economic disruptions may be mitigated by reliance on force majeure clauses in contractual agreements and business interruption provisions outlined in commercial insurance policies. As such, commercial entities need to work together with their property attorney, broker, and other advisors to determine if they may obtain relief from the effects brought by the pandemic.

 

Possible Property Insurer Responses

The scope of government actions to mitigate the virus’s spread and protect community health and safety are changing daily, if not hourly. They have closed down certain areas of the country, enacted quarantine zones, and curtailed travel. These measures have suspended a lot of business activities that rippled through the global economy. Various restrictions related to coronavirus remain in effect in the UAE. For example, in food establishments, social distancing must be maintained at all times among customers, and tables should be at least two meters apart.

Organizations are trying to understand how their property insurance policies might respond to ongoing financial loss. Under traditional property policies, insured physical loss or damage is needed to trigger a response. If coronavirus manifests at insured premises, insurers could assert that the effects are not physical loss or damage with people becoming unwell. They can also contend that fear on the public and possible contamination is not physical loss or damage. In this case, policyholders should consult with law firms in Dubai to test the positions taken by insurers as to what accounts for their policy conditions.

 

Business Interruption Coverage Triggers

An insurance policy offering “business interruption” coverage provides relief from economic distress through indemnification for losses ensuing from the risk insured against. But insurers are likely to view this coverage as being provoked only by insured physical loss or damage, following the cause of loss. This could mean that no coverage will be available where coronavirus is present or suspected to be present. However, in Dubai, property lawyers point out that there are policy extensions such as interruption by civil authority, ingress/egress, attraction or leader property, and contingent business interruption that may respond to losses related to coronavirus.

For instance, if coverage includes an extension for decontamination costs, it can respond to business interruptions caused by the enforcement of either law or ordinance or a government authority prompted by the contaminants’ presence. Another extension that can be used to cover losses related to coronavirus is communicable disease clean-up. It can cover reasonable and necessary costs for cleaning up a contaminated facility and disposing of contaminated materials due to a communicable disease’s actual presence on-premises.

 

Some commercial insurance policies contain more specified forms of business interruption coverage. Suppose your business is suffering losses and needs guidance over your insurance policy. In that case, you can rely on Motei & Associates to provide you with the best real estate lawyer in Dubai. They can work with you to notify insurers or set forth arguments in favor of coverage. Book an appointment today by calling +971 4 435 5959.

What Happens If One Of the Owners of a Property Goes Missing?

 

Many real estate transactions get delayed each year because one of the property owners has disappeared and remained absent without explanation. The missing co-owner can sometimes be an heir, an estranged husband or wife, a relative, or an unrelated co-investor. In most cases, one party cannot transfer the title to a buyer because the co-owner's name is still on the ownership records. For a deal to be completed, the guidance of a property attorney is necessary.

The issues inherent in the handling of property owned by a missing co-owner are both numerous and challenging. As long as it is not known whether the person in question is living or dead, rights remain uncertain, and the estate is rendered virtually useless. In Dubai, property dispute lawyers may recommend bringing a "quiet title" lawsuit to remove the missing co-owner's name from the land title.

A quiet title action is a proceeding filed to establish an individual's right to ownership of real property (land and buildings affixed to the land.) If a co-owner's whereabouts are unknown, the first step is to request approval from the local court for "service by publication" with a legal consultant's help. It's a legal notice printed in the local newspaper that informs a missing property co-owner that he is being sued. In addition, his presence is required in court, or his legal rights will be determined without his presence.

The plaintiff in a quiet title lawsuit seeks a court order that prevents the respondent from making any subsequent claim to the property. This action is important as real estate may change hands often. The general rule with a quiet title action is that the plaintiff may succeed only on the strength of his claim to the property, not on the respondent's claim's weakness.

A plaintiff may have less than a fee simple (absolute ownership of the real property) or less than full ownership and carry-on action to quiet title. He will then carry the burden of proving that he owns the title to the property. You will succeed in removing the respondent's claim from the title as long as your interest is valid, and the respondent's interest is not.

However, the common problem is that the judge doesn't always completely terminate a missing co-owner's rights in the estate after just a short absence, such as a year. This is why it is important to talk to an experienced, local real estate lawyer Dubai firm to evaluate the situation. Motei & Associates offers services in relation to both local litigation and international arbitration. They have the technical expertise to provide representation in all matters of property disputes. Book an appointment today at +971 4 435 5959!

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.