Indian Nationals Advised to Establish Separate Wills for Overseas Assets

UAE Property Investments: Understanding the Legal Framework for Indian Investors

Key Findings:

• The UAE, particularly Dubai, has emerged as a preferred destination for Indian investors due to stable returns, a zero-income-tax regime, and ease of ownership.
• However, Indian investors need to be aware of the local laws governing real estate in the UAE, which can differ significantly from those in India.

Understanding the Legal Framework:

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In the UAE, real estate is governed by local laws, which can pose challenges for Indian investors in extreme situations such as ongoing geopolitical tensions. Unlike property in India, UAE property laws differ in areas like inheritance, asset transfer, and dispute resolution. As a result, families back home may face legal hurdles and delays in accessing assets.

Separate Wills for Indian and Foreign Assets:

Experts recommend having separate wills for different jurisdictions when assets are spread globally. This ensures that Indian assets are covered by an Indian Will, while international assets, including those in the UAE, are governed by separate Wills. Registration of a Will is not mandatory in the UAE, but it is highly recommended to avoid conflict with Sharia or civil law.

Registering a Will in the UAE:

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There are three avenues for registering a Will in the UAE: Dubai International Financial Centre (DIFC), the Dubai Courts, or the Abu Dhabi Judicial Department (ADJD). The costs associated with registering a Will vary by jurisdiction:

• Dubai Courts: AED 5,000–6,000
• Abu Dhabi (ADJD): AED 950
• DIFC Dubai: AED 10,000–15,000

Claiming Assets in the UAE:

In the event of an Indian investor's death in the UAE without a Will, family members in India can follow a specific process to claim the assets:

1. Obtain the UAE death certificate from the relevant health authorities.
2. Approach the UAE Personal Status Court (such as Dubai Courts or the court of the relevant emirate) to apply for a succession certificate.
3. Submit documents, including passports, marriage and birth certificates, along with two witnesses, to establish the legal heirs under non-Sharia rules.
4. Once verified, the court issues an heirship decree, which must be submitted to banks, land departments, and employers to facilitate the release of assets.

Recommendations:

• Indian investors should consider having separate wills for their Indian and foreign assets.
• Registration of a Will in the UAE is highly recommended to avoid conflict with Sharia or civil law.
• Families should be prepared to arrange a UAE power of attorney or travel to the UAE to complete formalities in the event of an Indian investor's death.