The distribution of inherited real estate in the United Arab Emirates is dictated by Federal Law, drawing its framework from the tenets of Islamic Sharia. A notable distinction exists in these legal provisions for Muslim and non-Muslim individuals, directly influencing the division of assets.
For both current property holders and prospective beneficiaries, a thorough grasp of the UAE’s inheritance regulations is crucial. The following offers an in-depth overview of this subject.
Inheritance of Property in the UAE
Inheritance involves the transfer of possessions, financial holdings, and/or obligations following the demise of the titleholder. The rightful inheritors of the estate are invariably the legitimate successors, unless a different arrangement is specified in a testamentary document.
The way property inheritance functions differs for Muslims, non-Muslims, and individuals from other countries. We will discuss this in more detail later.
Legal Heirs:
Typically, a part of the property of the deceased is allocated among their correct legal heirs, until the Will clearly makes a different arrangement. The Islamic law underlined these legal heirs to include brothers and sisters along with spouses, sons and daughters, mother and father.
When a person goes away without leaving a will, their property is divided among the legal heirs as defined by Sharia law. These nominees are as follows:
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The spouse receives 1/4 of the share.
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The sons receive 2/3 of the remainder.
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Daughters receive 1/3 of the son’s share.
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In cases where there are no children, the spouse receives 1/2 of the share.
The standard division of the property can be adjusted if all agree to the legal successors amendments. In addition, the bank’s bank accounts, automobiles, investment holdings and other assets will also be distributed based on the principles mentioned above.
Muslims
In Islamic jurisprudence, the distribution of heritage follows the principles of Sharia law. This legal structure underlines many major ideas regarding heritage. An important aspect within Sharia law specifies that the property of a Muslim cannot be shared with individuals who do not follow Islamic faith.
The following are a few other key points:
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Before the division of assets, costs associated with the funeral and any outstanding debts are deducted.
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Any assets not specifically mentioned in the will are allocated according to the predetermined proportions outlined in Sharia Law.
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An individual who caused the death of the deceased is not eligible to receive any inheritance.
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A will can only dictate the distribution of a maximum of one-third of the total estate.
For those interested in understanding property valuation, we offer a guide that details the process in Dubai.
Non-Muslims
Non-Muslims in the UAE are not subject to Islamic Sharia law concerning the division of their property. Their rights are instead clearly stated in Articles 11 and 12 of UAE Law No. (41) of 2022.
This law allows individuals to freely designate who will inherit their property and assets, and the distribution will be carried out as instructed.
When there is no will in place, the spouse will inherit 50% of the estate, and the remaining 50% will be divided equally among the children, with no distinction made between sons and daughters. In other situations, the following rules are applied:
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Whether the person who has passed away has no children, their parents will receive a similar part of the property.
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In the event that only one parent is still alive, half the property will be divided between the parents and the siblings of that parents and the deceased person.
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When a person dies without a spouse, brother -in -law or children, his living parents will be entitled to the entirety of their property.
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If a parents are not alive, then there will be no difference between the brothers and sisters of the deceased, there will be no difference between them.
Expats
Prior to the implementation of the update legal structure, the distribution of property and assets of a deceased, even though Muslim or non-Muslim migrants, was automatically ruled by Sharia principles, regardless of their religious affiliation as a Muslim or non-Muslim migrant...Read More