Mutual Wills in the UAE: Understanding Joint Estate Planning
In the UAE, estate planning is a crucial aspect for individuals seeking to ensure that their assets are distributed according to their wishes after their demise. One such estate planning tool is the mutual will, a legal arrangement where two or more individuals make reciprocal promises regarding the distribution of their estates. This article delves into the concept of mutual wills, their legal standing in the UAE, and how they can be effectively utilized in estate planning.
What Is a Mutual Will?
A mutual will is a legal agreement between two or more individuals, typically spouses, where each party agrees to distribute their estate in a particular manner upon their death. The key characteristic of a mutual will is the mutual agreement and the intention that the terms of the will are binding on the surviving party. This means that after the death of one party, the surviving party is legally obligated to adhere to the terms of the mutual will and cannot alter the distribution of the estate as previously agreed.
Legal Recognition of Mutual Wills in the UAE
The UAE operates under a dual legal system, combining elements of Sharia law and civil law. The recognition and enforceability of mutual wills in the UAE depend on the religious status of the individuals involved and the jurisdiction under which the will is executed.
For Muslim Individuals
For Muslim individuals, inheritance matters are predominantly governed by Sharia law, as stipulated in the UAE Personal Status Law (Federal Law No. 28 of 2005). Under Sharia law, the distribution of an estate is predetermined, and individuals are permitted to bequeath only up to one-third of their estate to non-heirs without the consent of all legal heirs. Therefore, the concept of a mutual will, as understood in common law jurisdictions, does not align with Sharia principles. Consequently, mutual wills are not recognized or enforceable for Muslim individuals in the UAE.
For Non-Muslim Individuals
Non-Muslim expatriates residing in the UAE have the option to create wills that align with their personal or religious preferences. Under Federal Decree-Law No. 41 of 2022, non-Muslims can opt to apply the laws of their home country to the distribution of their estate, provided the will complies with UAE legal requirements. This provision allows for greater flexibility in estate planning, including the possibility of creating mutual wills. However, for a mutual will to be recognized and enforceable, it must meet specific legal criteria, including being in writing, signed by the testators, and witnessed by two adult witnesses who are not beneficiaries under the will.
Key Considerations When Creating a Mutual Will in the UAE
When considering the creation of a mutual will in the UAE, individuals should be aware of the following:
Legal Requirements: The will must be in writing, signed by the testators, and witnessed by two adult witnesses who are not beneficiaries under the will.
Registration: While not mandatory, registering the will with the relevant authorities, such as the DIFC Wills Service Centre or the Dubai Courts, can provide additional legal recognition and facilitate the probate process.
Revocation: A mutual will can generally be revoked or amended by the testators during their lifetime. However, once one party has passed away, the surviving party is legally obligated to adhere to the terms of the mutual will and cannot alter the distribution of the estate as previously agreed.
Legal Advice: Given the complexities involved in creating a mutual will, it is advisable to seek legal counsel to ensure that the will complies with all legal requirements and accurately reflects the testators’ intentions.
Conclusion
In the UAE, the concept of a mutual will is recognized primarily for non-Muslim expatriates, provided it complies with UAE legal requirements. For Muslim individuals, inheritance matters are governed by Sharia law, which does not accommodate the concept of a mutual will. Therefore, it is essential for individuals to understand the legal framework applicable to their situation and seek appropriate legal advice when considering estate planning options.