Succession planning in the UAE: Sharia, wills, foundations and trusts

Which law governs succession

Three regimes coexist and apply according to the person concerned.

• Non-Muslims, UAE nationals or foreign residents. Federal Decree-Law No. 41 of 2022 on Civil Personal Status, in force since 1 February 2023, applies and also covers inheritance and wills. A foreigner may invoke the law of his or her home country.
• Abu Dhabi. For non-Muslims, foreigners or UAE nationals, Abu Dhabi Law No. 14 of 2021 on Civil Marriage and its Effects in the Emirate of Abu Dhabi, together with Regulation No. 8 of 2022, applies before the Civil Family Court of the Abu Dhabi Judicial Department (ADJD). On succession it provides, like the federal law, freedom of testation over assets in the UAE and, without a will, half to the spouse and half to the children (Article 11).
• Muslims. Federal Decree-Law No. 41 of 2024 on Personal Status applies, in force since 15 April 2025, replacing Federal Law No. 28 of 2005. It applies to UAE nationals who are Muslim and, where there is no express provision, the court decides according to Islamic Sharia.

For UAE nationals holding more than one nationality, UAE nationality prevails and UAE law applies (Articles 25 and 26 of Federal Decree-Law No. 25 of 2025).

Non-Muslims: freedom of testation and the 50/50 rule

Federal Decree-Law No. 41 of 2022 applies to non-Muslim UAE nationals and to non-Muslim foreigners residing in the UAE, unless they invoke the law of their home country (Article 1(1)). The main rules:

• With a will, the testator may leave all the property he or she owns in the UAE to anyone, in accordance with the controls set by the Executive Regulations (Article 11(1)).
• Without a will, half of the estate passes to the spouse and half to the children, in equal shares and without distinction between sons and daughters; if there are no children, the estate passes to the parents and to the brothers and sisters in the order set by the provision (Article 11(2)). Men and women are treated equally in inheritance (Article 4(2)).
• National law at the heirs' request. Any of the foreigner's heirs may request the application of the law designated by the Civil Code, namely the national law of the deceased, unless there is a registered will to the contrary (Article 11(3)).
• Will at marriage. Spouses may complete a will registration form when signing the marriage contract, indicating how their property will be distributed on the death of either of them (Article 13(2)).

The implementing regulation, Cabinet Resolution No. 122 of 2023, sets the requirements for the will: a non-Muslim testator aged at least 21, an appointed executor, signature before two witnesses, no erasures, scraping or additions in the text, payment of fees and registration with the competent court (Articles 26–28).

Muslims: Sharia, fixed shares and the one-third limit

For Muslims, Federal Decree-Law No. 41 of 2024 governs wills and inheritance according to the principles of Sharia:

• One-third limit. A will is executed from the estate up to one third, after funeral expenses and debts (Article 173). Where it exceeds one third, the excess is suspended pending the heirs' consent and is executed to the extent of the shares of those who consent; where the testator has no heirs, the will is valid even beyond one third (Article 193).
• Fixed shares. Heirs receive predetermined shares; for example, where the deceased has no son, a single daughter receives one half and two or more daughters together receive two thirds; where there is a son, sons and daughters share the residue, a son receiving twice a daughter's share (Article 217).
• Obligatory bequest. The descendants of a son or daughter who died before the deceased, or at the same time, receive an obligatory bequest equal to the share their parent would have received, within the one-third limit and subject to the conditions of Article 179; it takes precedence over voluntary bequests.
• Order of payment. Funeral expenses, debts, testamentary dispositions within one third, then distribution among the heirs (Article 201).
• Amendment and revocation. A will made before the competent authority can be amended or revoked only in the same way (Article 177); a later will does not revoke an earlier one unless the revocation is express (Article 180).
• Unworthiness. A person who intentionally killed the deceased is excluded from inheritance (Article 203).
• Inheritance judge. The judge confirms the death, establishes the list of heirs, liquidates and divides the estate and appoints the wasi (Article 5(2)).
• Penalties. Anyone who conceals or misappropriates estate assets, heirs included, is liable to a fine of AED 5,000 to 100,000 (Article 253).

A foreign Muslim may invoke his or her own law (Article 1(3) of Federal Decree-Law No. 41 of 2024). However, the new Civil Transactions Law treats the personal status of Muslims, inheritance included, as a matter of public order (Article 3(3) of Federal Decree-Law No. 25 of 2025): whether the foreign law will in fact apply has to be assessed case by case.

From 1 June 2026: the new conflict-of-laws rule

Federal Decree-Law No. 25 of 2025, the new Civil Transactions Law, has been in force since 1 June 2026 and repealed Federal Law No. 5 of 1985. The conflict-of-laws rule on succession is now Article 17:

• Succession: the law of the State of which the deceased was a national at the time of death applies (paragraph 1).
• Substance of the will: the law chosen in the will applies or, failing that, the national law at the time of death (paragraph 3).
• Form of the will: the will is valid if it complies with the chosen law, the national law at the time it was made or the law of the place where it was made (paragraph 4).
• Immovable property in the UAE: UAE law applies to a will made by a foreigner concerning immovable property located in the UAE (paragraph 5).
• Foreigner without heirs: the foreigner's property rights in the UAE become a charitable waqf (paragraph 2).

Other provisions complete the framework: no renvoi to another law, except renvoi to UAE law (Article 28); the public order limit (Article 29); UAE law applies where the foreign law is not proven (Article 30). In Dubai, Law No. 15 of 2017 likewise provides for the law of the Emirate to apply to immovable property located in the Emirate, where the foreign law conflicts with public order and where the testator chooses UAE law for the will (Article 4(b)).

Wills and templates drawn up before 1 June 2026 may refer to Article 17 of Law No. 5 of 1985, as does the model clause published in the ADGM FAQ of 18 April 2025. The corresponding provision is now Article 17 of Federal Decree-Law No. 25 of 2025; it is advisable to update the reference at the next review of the will.

Where to register a will

In the UAE, wills of non-Muslims are registered with one of the official registries. The choice depends on where the assets are located and where the succession will be administered.

• DIFC Courts Wills Service (Dubai). Open to individuals who are not and have never been Muslim, are at least 18 years old and have assets in the UAE or minor children residing in Dubai or Ras Al Khaimah; residence is not required and registration can take place remotely. Six types of will are available: Full Will for movable and immovable property and guardians, Guardianship Will, Property Will for up to five properties, Business Owners Will for up to five shareholdings, Financial Assets Will for up to ten bank or investment accounts in the UAE, and Digital Assets Will for digital assets. Foreign assets may be included in a Full Will, but its execution outside the UAE is subject to the laws of the place where the assets are located. Probate takes place before the DIFC Courts and the resulting orders are enforced through the Dubai Courts. According to the DIFC Courts fee schedule consulted on 15 November 2026, a grant of probate application costs USD 1,500 and an amendment AED 550; fees are subject to change.
• ADGM Courts Wills Office (Abu Dhabi). Open to non-Muslims aged at least 21 with assets in the UAE. The will is bilingual, Arabic and English, certified by a legal translator licensed by the Ministry of Justice, and the procedure is digital with a virtual appointment. The ADGM Notary Public can also notarise wills covering assets outside the UAE. ADGM does not provide probate, which must be registered with the ADJD Wills and Probate Office.
• ADJD Civil Family Court (Abu Dhabi). The civil will is drawn up on a bilingual template and must be registered to be legally valid. According to the ADJD (page consulted on 15 November 2026), the fee is AED 950 for regular registration and AED 2,500 for special registration. According to the official ADJD FAQ, non-UAE citizens may register a will regardless of their religion.
• Dubai Register of Wills of non-Muslims. Dubai Law No. 15 of 2017 establishes it at the Dubai Courts and at the DIFC Courts; the law applies to wills and estates of non-Muslims in the Emirate, including the DIFC. At the Dubai Courts, the fee for attesting non-Muslim wills is AED 2,000 (Executive Council Resolution No. 72 of 2025, in force since 15 September 2025).

Formal requirements differ: the DIFC accepts testators aged 18 with a will in English, while ADGM and the federal regime require 21.

Several wills and foreign wills

In Dubai a will lapses if the testator revokes it, with the revocation registered, or if a new will contradicting it is registered (Article 10 of Law No. 15 of 2017). Among several wills, a registered will prevails over an unregistered one and, where all are registered, the will registered first prevails; where none is registered, they are treated as a single will and any conflict is decided by the court (Article 11). A new will should therefore expressly revoke the earlier one, with the revocation registered.

A will made abroad is formally valid if it complies with the chosen law, the national law at the time it was made or the law of the place where it was made (Article 17(4) of Federal Decree-Law No. 25 of 2025). Anyone with assets both in the UAE and abroad coordinates the wills, with revocation clauses limited to the territory of each, so that the most recent will does not revoke the other.

Executor and access to the estate

Under the federal regime the executor, under the supervision of the competent court, takes an inventory of the estate, receives and takes possession of it, collects the rights arising from it, takes the action needed to preserve it and deals with government and non-government entities to implement the will (Article 34 of Cabinet Resolution No. 122 of 2023). The estate pays, in order, funeral expenses, administration expenses, the executor's fees and debts (Article 25).

Access to the deceased's assets, bank accounts included, generally requires an order of the competent court: the inheritance judge or, for DIFC wills, DIFC Courts probate, applied for by the executor; in Dubai a registered will is implemented by a written order of the competent court. An appointed executor and, for accounts, a DIFC Financial Assets Will can make the process more orderly, without guaranteeing its timing; liquidity should be provided for the family during the transition.

Foundations in the UAE

There are four foundation regimes in the UAE:

• DIFC, Foundations Law No. 3 of 2018;
• ADGM, Foundations Regulations 2017;
• RAK ICC, Foundations Regulations 2019, amended with effect from 31 July 2025;
• DMCC, DMCCA Foundations Regulations 2026, published in September 2026: they come into force on the effective date notified by DMCCA (Article 32.3); as at 15 November 2026 DMCC is collecting expressions of interest and no notification has been found. The DIFC Courts are the competent court and the minimum assets are USD 100.

On contribution, the assets pass into the full ownership of the foundation. The DIFC, RAK ICC and DMCC rules provide that heirship rights conferred by a foreign law, as each regime defines it, do not affect the foundation's ownership of its assets; ADGM presents its regime as including similar firewall provisions. The DIFC Foundations Law, for example, provides that heirship rights conferred by foreign law over the property of a living person do not affect the foundation's ownership (Article 15), but does not validate dispositions of immovable property outside the DIFC that are invalid under the law of the place where it is situated, or testamentary dispositions invalid under the law of the testator's last domicile (Article 13(2)).

The notion of foreign law varies between regimes, and only the DMCC regulations expressly exclude applicable UAE law rules (Article 23.3). The succession rules for Muslims are a matter of public order in the UAE (Article 3(3) of Federal Decree-Law No. 25 of 2025): for those subject to them, protection should not be taken for granted.

Foundations are used to hold shareholdings and financial assets, with governance rules, a council and designated beneficiaries, to provide continuity of management after the founder's death. For foreign foundations, such as those in Liechtenstein, and for Italian tax aspects, see the guide UAE and Liechtenstein foundations: uses, Italian tax and risks.

Trusts: the federal regime and the financial centres

• Federal trust. Federal Decree-Law No. 31 of 2023 on Trusts (al-'uhda in Arabic) repealed Federal Decree-Law No. 19 of 2020. The trust acquires legal personality from its registration date (Article 3), is governed by its trust instrument and by the Decree-Law (Article 2), requires approval by the competent authority of the Emirate, which issues a certificate of validity (Article 42), and must be entered in the register (Article 44); procedures are set out in Cabinet Resolution No. 137 of 2023 and the licensing of professional trustees in Cabinet Resolution No. 141 of 2023. Professional trustees are permitted. The Decree-Law does not apply in financial free zones that have their own trust legislation. Trusts created under the 2020 decree should be reviewed in light of the new text.
• DIFC. Trust Law No. 4 of 2018 does not recognise heirship rights conferred by foreign law over the property of a living person, either as affecting ownership of the property or as an obligation.
• ADGM. Trusts are governed by English common law and the principles of equity, applied under the Application of English Law Regulations, and by the Trusts (Special Provisions) Regulations 2016. An express trust has no separate legal personality. ADGM lists succession and estate planning among the purposes of a trust: assets are vested in the trustee, which may be a corporate trustee, providing continuity of ownership and administration beyond the settlor's lifetime.

For how trusts work and how they are taxed in Italy, see the guide Trusts: how they work and how they are taxed in Italy.

Family Foundations and Corporate Tax

A foundation or trust may apply to the Federal Tax Authority (FTA) to be treated as a tax-transparent Unincorporated Partnership for Corporate Tax purposes (Article 17 of Federal Decree-Law No. 47 of 2022) where all the conditions are met:

• it is established for the benefit of identified or identifiable natural persons, of a public benefit entity, or both;
• its principal activity is to receive, hold, invest, disburse or otherwise manage assets or funds associated with savings or investment;
• it does not conduct any activity that would constitute a Business if carried out directly by the founder, settlor or beneficiaries;
• its main purpose is not the avoidance of Corporate Tax;
• any other conditions prescribed by the Minister of Finance (Ministerial Decision No. 261 of 2024).

The implementing rules are in Ministerial Decision No. 261 of 2024, which replaced Decision No. 127 of 2023 and allows a juridical person wholly owned and controlled by a Family Foundation treated as an Unincorporated Partnership to apply for the same treatment (Article 5(2)). The FTA Family Foundations guide, June 2026 version, specifies that:

• the notion covers foundations, trusts and similar entities, including foreign ones (§ 5.6);
• entities wholly owned and controlled by the foundation may be included (§ 6);
• transfers of personal or real estate investments by natural persons are not subject to Corporate Tax (§ 7.8);
• where beneficiaries include public benefit entities, the foundation must also show that they do not derive income that would be taxable if derived directly, or distribute that income within six months of the end of the tax period (Article 5(1) of Ministerial Decision No. 261 of 2024);
• if the conditions cease to be met, the status is lost from the beginning of the tax period (§ 8.4);
• a single or multi family office is unlikely to meet all the conditions (§ 7.10).

Operating companies held by the foundation do not benefit from transparency and remain subject to their own Corporate Tax treatment.

Planning for foreign residents

For foreign residents, planning prevents the succession from following rules that differ from the deceased's wishes and shortens the period during which assets are blocked.

• Non-Muslims. A will registered with the registry chosen according to the assets and the testator's position: the DIFC Courts register wills covering assets anywhere in the UAE (guardianship appointments concern minor children residing in Dubai or Ras Al Khaimah); in Abu Dhabi, the ADJD Civil Family Court or ADGM, which notarises the will while probate is applied for at the ADJD; in Dubai, also the non-Muslim wills register. The will expressly chooses the law applicable to movable property, UAE or national, appoints executors and guardians for minor children and takes into account that immovable property in the UAE remains subject to UAE law. Without a will, the 50/50 rule or an heir's request to apply the national law may lead to outcomes other than those intended, with the time and cost of proving the foreign law.
• Business owners. Shareholdings are transferred through a DIFC Business Owners Will or contributed to a foundation or trust, which keeps their management unified; where the structure meets all the conditions of Article 17, it may apply to the FTA to be treated as transparent for Corporate Tax purposes.
• Muslims. The will is valid up to one third and the choice of national law meets the public order limit. The DIFC Wills Service is not open to those who are or have been Muslim; the ADJD FAQ, by contrast, allows non-citizens to register regardless of religion.
• Assets abroad. The UAE will is coordinated with those made in the countries where other assets are located. Italian law aspects, for Italian nationals, are examined separately; for assets in several EU States, see the guide Successions with assets in several EU States: applicable law, the European Certificate of Succession and Italian taxes.

Planning for UAE nationals

For UAE nationals, planning mainly concerns the continuity of family wealth and of the family business.

• Muslim nationals. The heirs' fixed shares remain in place: the will operates up to one third and, beyond one third, requires the heirs' consent; the obligatory bequest in favour of the descendants of a predeceased son or daughter falls within the one third. A foundation or trust makes it possible to regulate governance, continuity and the undivided ownership of business assets, without relying on the possibility of exceeding the shares set by Sharia, which are a matter of public order in succession (Article 3(3) of Federal Decree-Law No. 25 of 2025).
• Non-Muslim nationals. Federal Decree-Law No. 41 of 2022 applies, with full freedom of testation over assets in the UAE; in Abu Dhabi, Law No. 14 of 2021, which also covers non-Muslim UAE nationals. The will must be drawn up and registered in accordance with the applicable formal requirements.
• Multiple nationality. Where a UAE national also holds another nationality, UAE law applies (Article 26 of Federal Decree-Law No. 25 of 2025).

Asset protection

Foundations and trusts separate the contributed assets from the personal assets of the founder or settlor where the contribution is valid under the applicable regime and, for immovable property, under the law of the place where it is located. The main limits include contributions made while insolvent or to defraud creditors:

• the DMCC regulations exclude setting aside a contribution because of the founder's insolvency, unless the court finds that, at the time of the transfer, the founder was insolvent or intended to defraud creditors: in that case it may declare the transfer void to the extent of the creditor's claim, with the burden of proof on the creditor (Article 24); no action to set aside the registration of the foundation or a transfer to it may be brought after three years from the relevant act (Article 25.1);
• the 2025 amendments to the RAK ICC regulations introduced a three-year period for challenging the formation of a foundation or the transfer of assets into it, the requirement to prove insolvency in fraudulent transfer claims with liability capped at the value of the disputed asset, and the non-enforceability against the foundation of foreign judgments conflicting with UAE law;
• for federal trusts, Article 52 sets limitation periods for claims against the trustee (for a beneficiary, three years from receipt of the external auditor's report or from knowledge of the breach, whichever is earlier; fifteen years from the breach for other claims), which do not bar claims for fraud or for recovering trust property transferred in breach of the trust instrument or the Decree-Law.

Solvency at the time of contribution should be documented.

What to do in practice

1. Identify the applicable law based on religion, nationality and Emirate of residence, and the location of each asset: real estate, shareholdings, accounts, assets abroad.
2. Draw up and register the will with the registry that fits the assets, appointing executors and guardians for minor children.
3. Expressly choose the law applicable to movable property, bearing in mind that immovable property in the UAE follows UAE law.
4. Update the reference to Law No. 5 of 1985 in existing wills at their next review and, in Dubai, coordinate registered wills.
5. Coordinate UAE wills with foreign wills, with revocation clauses limited by territory.
6. Consider a foundation or trust for shareholdings and financial assets, defining governance, council and beneficiaries.
7. Consider applying for transparency to the FTA for Corporate Tax purposes if the structure meets all the conditions of Article 17 and Ministerial Decision No. 261 of 2024, and monitor them over time.
8. Document solvency at the time of each contribution.
9. Provide liquidity for the family for the period during which the deceased's assets are unavailable.

Risks to assess

• No registered will: the 50/50 rule for non-Muslims, fixed shares for Muslims, possible request to apply the national law with the burden of proving it.
• Outdated choice-of-law clauses still referring to Law No. 5 of 1985.
• Choice of national law extended to UAE real estate, which remains subject to UAE law.
• Uncoordinated multiple wills and, in Dubai, unregistered revocations.
• One-third limit for Muslims and the public order limit for foreign Muslims.
• Foundations presented as full protection: protection operates within the limits of each regime, is uncertain with regard to UAE succession rules and does not cover contributions made while insolvent or to defraud creditors.
• Loss of tax transparency if the Family Foundation carries on a business.
• Trusts created under the 2020 decree not reviewed after its repeal.
• Concealment of estate assets, penalised even when committed by an heir.
• Foreigner without heirs, whose UAE assets become a charitable waqf.