Many people create Wills without fully understanding which assets they actually cover. This oversight leads to incomplete estate planning that leaves important assets unprotected. Additionally, some assets might not transfer according to your wishes despite having a Will.
Today, Wills in Dubai allow residents to clearly define how their assets should pass on. However, coverage depends on what the law recognizes as part of an estate, and missing even one asset category can create disputes and long delays.
What the Law Considers Part of Your Estate
According to the Federal Decree-Law No. 41 of 2022, your estate includes all property you owned at death. This encompasses both movable and immovable assets. It also covers the real rights and obligations you held.
This broad definition means more than just physical property. Your estate includes financial interests, legal claims, and various ownership rights. Therefore, comprehensive Will planning must address all these asset categories.
Real Estate and Property
Property represents the most obvious asset type people include in Dubai Wills. Federal law explicitly covers real estate under estate provisions.
Types of Property Covered:
- Residential homes and apartments
- Commercial buildings and offices
- Land plots and development sites
- Villa compounds and townhouses
- Parking spaces and storage units
Real estate in Dubai requires specific Will registration to ensure proper transfer. Similarly, property in Abu Dhabi needs appropriate Will documentation. Each emirate has slightly different procedures for property inheritance.
Furthermore, joint ownership situations need clear Will provisions. Your Will should specify what happens to your share of jointly owned property. Without clear instructions, default inheritance rules determine distribution.
Bank Accounts and Financial Assets
All financial accounts you hold become part of your estate. This includes checking accounts, savings accounts, and investment portfolios.
Financial Assets to Address:
- Local bank accounts in UAE banks
- International bank accounts
- Investment accounts and securities
- Retirement funds and pensions
- Insurance policies with cash value
Banks freeze accounts when account holders die. Your Will provides the legal basis for releasing these funds to beneficiaries. Without a Will, courts must verify rightful heirs before unfreezing accounts.
Additionally, specify exact account details in your Will when possible. This clarity helps executors locate and claim all financial assets efficiently.
Business Interests and Shares
If you own part of a business, these interests form part of your estate. Federal law explicitly includes shares and business ownership in estate definitions.
Business Assets Covered:
- Company shares in UAE businesses
- Partnership interests in LLCs
- Sole proprietorship assets
- Intellectual property rights
- Business contracts and agreements
Business succession requires special attention in Will planning. Your Will should address who inherits ownership and who manages operations. These might be different people depending on skills and circumstances.
Moreover, some business structures have restrictions on ownership transfer. Check your company agreements before making Will provisions for business interests. Partnership agreements sometimes override Will instructions.
Personal Possessions and Valuables
Physical items you own also transfer through your Will. This category covers everything from furniture to jewelry.
Personal Items to Consider:
- Jewelry and watches
- Vehicles and boats
- Artwork and collectibles
- Furniture and household items
- Electronics and equipment
While individual items might seem minor, their combined value can be significant. Additionally, some possessions carry sentimental value that makes specific bequests important. Therefore, specify which family members receive particular items to prevent disputes.
Digital Assets and Online Accounts
Modern estates include digital properties that previous generations never considered. These assets need Will provisions just like physical property.
Digital Assets Include:
- Cryptocurrency holdings
- Domain names and websites
- Social media accounts
- Email accounts and cloud storage
- Digital photos and documents
- Online business accounts
Provide executors with access information for critical digital assets. Additionally, specify your wishes for each account. Some you might want closed while others should be memorialized or transferred.
Furthermore, digital assets often have financial value beyond sentimental worth. Cryptocurrency and online businesses represent real wealth that proper Will planning must address.
Inheritance Portions and Bequests
Federal Decree-Law No. 41 of 2022 allows bequests up to one-third of your estate for Muslims (Wasiyyah). This provision lets you designate specific assets or portions to particular people.
You can use this one-third allocation for various purposes. For instance, you might leave portions to charity or non-family members. Additionally, you can specify exact property items rather than just percentage shares.
These two-thirds restriction protects mandatory heirs under Sharia law for Muslims. Non-Muslims with registered civil Wills (e.g., DIFC/ADJD) can opt for full testamentary freedom (100% distribution as wished), removing the one-third limitation entirely.
Plan Your Estate Properly
Your Will should cover every asset you own in the UAE. This includes property, bank accounts, business interests, and personal belongings. Missing even one asset category can create problems for your family later.
Professional help ensures your Will addresses everything correctly. Experts identify assets you might forget and use the right legal terms for each type. Whether you need Dubai Wills or Wills in Abu Dhabi, proper planning protects all your assets completely.