Buying a property is achieving a significant milestone in life, which involves years of hard work. That said, imagining what will happen to that property after the inevitable passage of time is unthinkable for many. Although the UAE has an inheritance law governing the transfer of assets, it varies from individual to individual. There are multiple legal issues that can arise if the heirs of the property are not legally entitled.
Let us elaborate further on this question: what will happen to my UAE property when I die?
Inheritance Laws for UAE Property
The UAE has different inheritance laws for Muslims and non-Muslims. If the deceased was Muslim, Shariah law will be applied, and for non-Muslims, personal laws will be implemented. Expats are also allowed to divide the inheritance as per the law of their land. Please remember that expats are only allowed to purchase property in the freehold areas of the Emirate. Read through the difference between freehold and leasehold properties to avoid any confusion.
Prior to moving forward with the laws, let’s first take a look at the legal definition of inheritance.
What is Inheritance
According to Article 313 of the UAE Personal Status Law of 2005, inheritance is the distribution of property among the rightful owners after the owner’s death. However, the inheritance is only applied if the deceased has left no will. If a will is present, the assets are divided according to it, which may or may not include the rightful heirs.
To know more legal terms used in the real estate industry, browse through our real estate glossary.
Inheritance for Muslims
The Shariah laws of inheritance are explained in detail in the UAE law. Following are the summarised points from the law.
- The inheritance will be divided after deducting the funeral cost and paying debts (if any).
- If a will is present, the assets will be divided according to it, and if any property is not mentioned in the will, it will be divided as per the Shariah law.
- Only one-third of the property can be included in the will. Moreover, the will should cater to the guidelines drafted in the law.
- The legal heirs must be identified by two male witnesses, and document proof is also necessary.
- Non-Muslims are not allowed to inherit from a Muslim deceased.
- If the deceased was killed by the inheritor, they will be excluded from the inheritance list and will not be entitled to a share.
Inheritance for Non-Muslims
The inheritance laws for UAE property Articles 11 and 12 of Federal Decree-Law No. 41 of 2022 divide the property of non-Muslim residents if they die without intestate.
- The property will be divided equally among the spouse and children.
- In case of no children, 50% of the property will be inherited by the parents and 50% by the spouse.
- If only one parent is alive, 50% of the property will be inherited by the spouse and the remaining 50% will be divided into two equal halves, one for the living parent and one for the brothers of the deceased.
- If there are no brothers, spouses or children, the property will be inherited by the parent.
- If there are no parents, the property will be inherited by the brothers.
The above-mentioned conditions are applicable if there is no proper will for the property distribution. The children of an expat can also request for the devolution of the property as per the law of their homeland.
Once the property is inherited, the inheritor can register it under their name. Here is how to request gifted property registration in Dubai and other Emirates.
What is Forced Inheritance
The forced inheritance is a fixed share of the property that will be inherited as per Articles 321 to 328. Mentioned below are the forced inheritance in the Emirates.
Half Inheritance
The forced inheritance will allow the following individuals to inherit half of the property in certain conditions:
- If the wife has no descendants, the husband will get half of the property.
- If the only child of the deceased is a daughter.
- If there are no children or grandchildren, the daughter of the son will inherit half of the property.
- A Germane sister, if there is no spouse or paternal or maternal grandfather, is alive.
- The consanguine sister (who shares the same father with the deceased), if there are no spouse, children and father or paternal grandfather.
One-Third Inheritance
From the inheritance of the deceased, the one-third will be inherited by the following individuals in case of no descendants:
- To the mother
- Children of two or more mothers
- To the paternal grandfather, if he concurs by consanguine brothers or sisters
One-Fourth Inheritance
The forced inheritance allows the following individual to inherit the one-fourth share under the following circumstances:
- Husband, if the wife has descendants.
- To the wife, if the husband has no descendants.
One-Sixth Inheritance
Following are the forced inheritors of the one-sixth share if there are no descendants:
- The father, paternal grandfather or grandmother.
- The mother, with the descendants and siblings.
- Daughters of the son or of descendants if there is no son or grandson.
- Uterine (who share the same parents) siblings in the absence of a father or paternal grandfather.
Two-Third Inheritance
The two-third inheritance will be transferred to:
- Two or more daughters if there are no sons of the deceased.
- Daughters of the son, if there is no spouse, children or grandchildren are present.
- Germane sisters, if there are no descendants, germane or consanguine brothers.
- Consanguine sisters, if there are no descendants, germane or consanguine brothers.
The remaining property after forced inheritance will be divided among other heirs. If there are no heirs, the property will be transferred to forced heirs, if not, then to the residuary heirs.
In the absence of residuary heirs, the property will be divided among extended family members, and if they are not present, the government will take over the property.
FAQs
What happens to properties when you die?
After your death, the property will be divided as per the will and in case of no will, the property will be divided among the heirs as per the UAE law.
Who are the legal heirs in the UAE?
The legal heirs include spouses, children and grandchildren. In their absence, the property will be divided according to the above-mentioned laws.
Is a will necessary in the UAE?
Yes, it is necessary to distribute the property among legal heirs. However, if there is no will, the property will be divided as per Shariah law for Muslims and personal and inheritance laws for non-Muslims.
This is what will happen to your property when you die in the UAE. The government has drafted proper laws for the transfer of the property to its rightful owners. That said, the law also facilitates heirs of foreign investors to claim their properties.
These facilities and supporting laws are one of the reasons that UAE’s real estate market is showing an upward trajectory. If you are also interested in availing of this positive trend, browse through these properties for sale in the UAE and invest in real estate conveniently.
If you are new to the Emirates, here are a few things to consider before investing in off-plan properties.
Stay tuned to dubizzle’s property blog for more information on what happens when an expat dies in the UAE.
