Law No. (15) of
2017
Concerning
Administration
of Estates and Implementation of Wills of
Non-Muslims in
the Emirate of Dubai[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing
the Civil Code and its amendments;
Federal Law No. (11) of 1992 Issuing
the Civil Procedures Code and its amendments;
Federal Law No. (28) of 2005
Concerning Family Affairs;
Federal Law No. (2) of 2015 Concerning
Commercial Companies;
Law No. (3) of 2003 Establishing the
Executive Council of the Emirate of Dubai;
Law No. (9) of 2004 Concerning the
Dubai International Financial Centre and its amendments;
Law No. (12) of 2004 Concerning the
Dubai International Financial Centre Courts and its amendments;
Law No. (6) of 2005 Regulating the
Dubai Courts and its amendments;
Law No. (7) of 2006 Concerning Real
Property Registration in the Emirate of Dubai;
Law No. (1) of 2016 Concerning the
Financial Regulations of the Government of Dubai; and
Law
No. (13) of 2016 Concerning the Judicial Authorities in the
Emirate of Dubai,
Do hereby issue this Law.
This
Law will be cited as “Law No. (15) of 2017 Concerning Administration of Estates
and Implementation of Wills of Non-Muslims in the Emirate of Dubai”.
The
following words and expressions, wherever mentioned in this Law, will have the
meaning indicated opposite each of them unless the context implies otherwise:
|
UAE: |
The United Arab Emirates. |
|
Emirate: |
The Emirate of Dubai. |
|
Ruler: |
His Highness the Ruler of Dubai. |
|
Government: |
The Government of Dubai. |
|
DIFC: |
The Dubai International Financial Centre. |
|
Competent Court: |
The Dubai Courts or the DIFC Courts, as the case may be. |
|
President: |
The President of the Dubai Courts or the Chief Justice of the DIFC
Courts, as the case may be. |
|
Will: |
The expression of how a testator wishes his property or any part thereof
to be disposed of after his death. |
|
Estate: |
All property and real and moral rights of a deceased. |
|
Executor: |
A natural or legal person appointed by a testator pursuant
to a Will or
other separate document, or appointed by the
Competent Court, to implement the Will. |
|
Administrator: |
A natural or legal person who administers an Estate under
the supervision of the Competent Court. |
|
Register: |
The register of Wills and Estates of non-Muslims created within
the Dubai Courts, or the register of Wills created within the DIFC Courts. |
This Law will apply to all Wills and
Estates of non-Muslims in the Emirate, including in the Dubai International
Financial Centre.
a. Except
as expressly provided for by this Law, the applicable law prescribed by the
choice of law provisions of the legislation in force will apply to Estates and
Wills of non-Muslims.
b. Notwithstanding
the provisions of paragraph (a) of this Article, the legislation in force in
the Emirate will apply in any of the following cases:
1.
where
the Estate or Will relates to Real Property located in the Emirate;
2.
determining
whether the willed property is real or moveable;
3.
where
the provisions of the applicable foreign law contradict public order or morals;
and
4.
where
the testator
chooses the application of the UAE legislation to his Will.
c. Where
a testator has multiple nationalities, the applicable law will be decided based
on the nationality specified by him upon registration of his Will. Where he
does not specify a nationality, the Will will be governed by the legislation of
the country in which he resides or his business is based.
A
Will takes precedence over intestate succession. However, a Will will not be implemented and an Estate
will not be distributed unless the following liabilities are settled as per the
order of priority stated below:
1.
the
funeral expenses of the deceased;
2.
the
Estate administration and Will implementation expenses;
3.
the
remuneration of Executors and Administrators; and
4.
the
debts owed by the Estate, as per the debt priority ranking stipulated in the legislation
in force.
a. A
register known as the “Register of Wills of non-Muslims” will be created at the
Dubai Courts and at the DIFC Courts for the purpose of registering Wills of
non-Muslims.
b. The
form of the Register, the information to be entered therein, and the procedures
and rules for registration thereon will be determined pursuant to a resolution
of the President.
The execution of a Will will be effected
in writing, or by using meaningful verbal expressions or intelligible signs if
the testator is unable to write. A Will may be made in favour of a named or
unnamed person; a living person or an unborn child whose existence is
ascertained; or an identified or unidentified group, and may be made for
charitable purposes. The wording of a Will may be non-restrictive or restrictive.
A Will may stipulate that it will take effect on a future date, and may be
conditional or contingent upon the satisfaction of any requirements. In
addition, a Will may apply to the whole Estate or to any part thereof.
Registering
a Will on the Register will be subject to the following
conditions:
1. The testator must be
non-Muslim.
2. The Will must satisfy the
Will validity
conditions stipulated herein.
3. The Will must nominate an
Executor and must state how the willed property will be disposed of.
4. The testator must
have signed the Will or affixed his seal or fingerprint to it, in the presence of two (2)
witnesses.
5. The text
of the Will must
not have been altered by deleting or erasing any part
thereof, or by adding or inserting new text.
6. All the fees prescribed by
the legislation in force in the Emirate must have
been paid.
a. A Will will be valid subject
to the following conditions:
1. The willed property must be capable
of being owned and used by the beneficiary of the Will.
2. The testator must be of full
capacity and must not be less than twenty-one (21) years of age.
3. The testator must not be under
interdiction for prodigality or imbecility unless the Will is made for
charitable purposes and his guardian obtains the relevant approval from the
Competent Court.
4. The testator must not be prohibited
from disposing of his property, and must not be declared bankrupt or insolvent.
5. The willed property must be owned by
the testator.
6. The Will must be enforceable.
7. The enjoyment of the willed property
and the purpose for which it is bequeathed must be lawful.
8. The willed property must be existent
and of a known or measurable amount at the time of death of the testator.
Future assets may be bequeathed by a Will if their existence is ascertainable.
9. The Will must not contradict public
order or morals.
b. Any interested party may
request the interpretation of, or contest, a Will before the Competent
Court.
c. Where a Will includes a
condition which contradicts public order or morals, this condition will be null
and void and the Will will remain valid.
A
Will will lapse in any of the following cases:
1. where
the Will is
revoked by the
testator. This revocation must be registered on the Register;
2. where a new Will that contradicts
the original Will is registered;
3. where the willed property is
disposed of in a
manner that involves transfer of ownership;
4. in
the event of death
of the beneficiary of the Will during the lifetime of the
testator, unless an alternative beneficiary is stated in the Will;
5. in
the event of destruction
of the willed property; where it is proven pursuant to a
definitive court judgment that the
title to the property belongs to another person; or where such property is proven to be
non-transferable;
6. where
the testator becomes
bankrupt during
his lifetime, or where
the entire willed
property is used to satisfy the debts of the Estate;
7. in the event of renunciation
of the Will by its beneficiary or his guardian; and
8. where the testator is killed
by the beneficiary of the Will; whether that beneficiary has been a principal
or accomplice in the murder of the testator, or has caused his death. In any
such case, the beneficiary must have been convicted pursuant to a definitive court
judgment.
a. In
case of multiple Wills, the Will which is registered on the Register will
prevail. Where all Wills are registered, the Will registered first will
prevail.
b. Where
none of the multiple Wills is registered on the Register, they will be deemed a
single Will. In the event of conflict between or amongst them, the Will
determined pursuant to a judgment of the Competent Court will be implemented.
a. Upon
the death of a testator, the beneficiary of the Will may accept or renounce it
in whole or in part within sixty (60) days from the date on which he is
notified of the Will. This will be subject to the following rules:
1. Where the beneficiary is a
minor, an unborn child, or a person placed under interdiction, the
acceptance or
renunciation of the Will will be effected by the
guardian, subject to the approval of the Competent
Court.
2. Where the beneficiary is a
public or private entity, the acceptance or renunciation
of the Will will
be effected by the legal representative of that entity.
b. Where
the beneficiary dies before he accepts or renounces the Will, the right to
accept or renounce it will pass to his heirs. In case he leaves no heirs, the
Will will lapse.
c. Where
the beneficiary is an unnamed person, no acceptance or renunciation will be
required.
Where the willed property is
encumbered by any rights or obligations, it will be transferred to the beneficiary of
the Will together with these
rights and obligations. If the beneficiary refuses to fulfil these rights and obligations, his rights
under the Will
will be forfeited.
a. An
Executor must:
1. be of full capacity;
2. not be convicted of any felony or
other crime affecting honour and trustworthiness, unless he has been
rehabilitated;
3. not have been declared bankrupt or
insolvent, unless he has been rehabilitated;
4. declare his acceptance to implement
the Will; and
5. not have any interest in the willed
property.
b. In
the absence of an Executor, the Competent
Court will appoint an Executor as per the following order:
1. the alternative Executor named in
the Will;
2. any Executor chosen by the
beneficiary or his guardian; or
3. any other Executor determined by the Competent Court.
Under
the supervision of the Competent Court, an Executor will have the duties and
powers to:
1.
conduct an inventory of the willed
property; receive and take possession of that property; collect any rights
arising from the same; and take any necessary action to preserve it, including
entrusting it to a trustworthy person, initiating legal proceedings, dealing
with government and non-government entities in respect of the implementation of
the Will; and representing the beneficiary of the Will in claims related to the
Will;
2.
pay the beneficiary of the Will his
necessary expenses from the willed property once the amount of these expenses
is determined by the Competent Court;
3.
where the Will is encumbered by any
rights, invite creditors and the holders of these rights to submit their claims
within ninety (90) days from the date on which the invitation is published in
two (2) local daily newspapers, one of which is in English;
4. perform any obligations arising from
the Will and make the necessary settlements in this respect, subject to obtaining the
written approval of the Competent Court;
5. subject to
obtaining the
approval of the Competent Court, take the necessary action to manage and invest
the willed property, including by way of lease or mortgage
of this property,
whether by himself or through contracting any investment agents;
6. appoint lawyers and seek
assistance from experts and specialists to exercise his duties and powers; and pay their fees and
remuneration from the willed property, subject to obtaining the written
approval of the Competent Court of the amount of these fees and remuneration;
7. subject to obtaining the
written approval of the Competent Court, sell any part of the willed property
where the cost of maintaining this part exceeds its value, or where it is prone
to damage or destruction; and
8. subject to obtaining the
written approval of the Competent Court, deliver the willed property or any
part thereof to the beneficiary.
An
Executor must:
1. manage the willed property in
good faith and with the due diligence
a prudent person would exercise;
2. present himself as Executor
when exercising any of his duties and powers under this Law or under the Will;
3. regularly keep separate
records and books in respect of the implementation of the
Will;
4. not use,
or allow any other person to use, the willed property directly
or indirectly for
his own benefit or gain, unless he is so authorised by the
testator or the Competent Court;
5. not disclose to others any
information or data related to the accounts of the Will, unless otherwise
stipulated by the legislation in force; and
6. meet any other obligations
stated in the Will implementation order or required due to
the nature of disposition.
a.
The
Competent Court may, at any time, for valid reasons and based
on the application of an Executor, a beneficiary, or heirs, issue
a judgment removing
the Executor upon hearing the statements of the applicant and of the Executor and
reviewing the relevant submissions. In this case, the
Competent Court will appoint a replacement Executor.
b.
Where
an Executor is removed, he must, within sixty (60) days from
the date on which he is notified of the removal
decision, submit
to the Competent Court a detailed report on the work he has performed and the financial accounts related
to the Will.
A
Will will be implemented pursuant to:
1. a written order issued by the
Competent Court, where the Will is registered on the Register; or
2. a judgment issued by the Competent
Court based on a written application by the beneficiary of the
Will or his guardian in accordance with the procedures
for instituting legal proceedings, where the Will is not registered on the Register.
An Executor must, within the time frame prescribed by the
Competent Court for this purpose, submit to the Competent Court a report on his
work. This report must contain a detailed statement of the accounts and
expenditure related to the Will.
The
ownership of willed property will be transferred to the beneficiary of
the Will pursuant
to an order or a judgment issued by the Competent Court, subject to the following:
1. The beneficiary must be of
full capacity and must not be under interdiction for
prodigality or imbecility,
except where the beneficiary is a minor, or a person placed under interdiction,
who has a guardian, custodian, or trustee.
2. The Executor must submit to the Competent
Court the final accounts of the willed property.
a.
The
Estate of a deceased non-Muslim will devolve to his heirs in accordance with
the procedures stipulated herein and the rules and procedures adopted by the
Competent Court.
b.
Except
for funeral expenses and other necessary expenses of
the deceased’s
family members who depended on him for
livelihood
during his lifetime, no disposition in respect of an Estate may be undertaken
before an Estate administration judgment or order is issued by the
Competent Court to appoint an Administrator.
a. An
Estate will be administered by one or more persons (the “Administrator(s)”).
An Administrator will, in addition to the duties assigned to him pursuant to
the Estate administration judgment issued by the Competent Court, exercise the
duties and powers stipulated in this Law.
b. The
Administrator will be the legal representative of the Estate, and may sue and
be sued in that capacity.
c. The
Competent Court may appoint the Administrator from amongst persons agreed upon
by the heirs, or may appoint any other person. It may also appoint more than
one Administrator, in which case they will be assigned to act jointly or
severally, and each of them will perform specific duties.
d. The
Competent Court may, based on a written application by the heirs or their legal
representative(s), issue a judgment to remove an Administrator and replace him
with another Administrator for any reason whatsoever. Where the Estate is
administered by multiple Administrators, and the Competent Court holds that the
remaining Administrators can continue to administer the Estate, it may remove
the Administrator without appointing a replacement.
e. Where
an Administrator is replaced, he must submit to the Competent Court, within
sixty (60) days from the date on which the judgment replacing him is issued, a
report which contains a detailed account of the work he has performed and the
financial statements of the Estate.
An
Administrator will have the duties and powers to:
1. conduct an inventory of the
Estate of the deceased;
2. where the Estate is
encumbered by any rights, invite creditors and holders of these
rights to submit
their claims within ninety (90) days from the date on which the invitation is
published in two (2) local daily newspapers, one of which is in English;
3. receive and take possession
of the Estate; collect any rights arising from the same; and take any necessary
action to preserve it, including entrusting it to a trustworthy person,
initiating legal
proceedings, and dealing with government and non-government entities in respect
of any matter related to the Estate;
4. appoint lawyers and seek
assistance from experts and specialists to exercise his duties and powers; and
pay their fees and remuneration from the Estate, subject to obtaining the
approval of the Competent Court of the amount of these fees and remuneration;
5. pay
any heir in need
his necessary expenses once these expenses are determined by the Competent Court,
and deduct the same from his share in the Estate upon distribution
of the same;
6. perform any obligations arising from
the Estate and make the necessary settlements in this respect, subject to obtaining the
written approval of the Competent Court;
7. subject to obtaining the written
approval of the
Competent Court, take the necessary action to manage and invest the property
of the Estate,
including by way of lease or mortgage of this property, whether by himself or through
contracting any investment agents;
8. subject to obtaining the
written approval of the Competent Court, sell any part of the Estate where the
cost of maintaining this part exceeds its value, or where it is prone to damage
or destruction;
and
9. distribute the Estate to
beneficiaries in accordance with a judgment issued by the Competent Court in
this respect.
An
Administrator must:
1. administer the Estate in good
faith and with the due diligence
a prudent person would exercise;
2. present himself as Administrator
when exercising any of his duties and powers under this Law;
3. regularly keep separate
records and books of each Estate;
4. not use,
or allow any other person to use, the property of the Estate directly
or indirectly for
his own benefit or gain, unless he is so authorised by the
Competent Court;
5. not disclose to others any
information or data related to the accounts of the Estate, unless otherwise
stipulated by the legislation in force; and
6. meet any other obligations
stated in the Estate administration order
or required due
to the nature of disposition.
a. An
Administrator will, within six (6) months from the date of issuance of an
Estate administration judgment, submit to the Competent Court an inventory of
the property and assets of the Estate, an estimated value of the same, and a
statement of the rights or obligations thereof. The Competent Court may extend
this time frame for the same period based on a written application of the
Administrator.
b. Any
affected party may contest the inventory of the property of the Estate referred
to in paragraph (a) of this Article before the Competent Court within ninety
(90) days from the date of being notified of the same. The judgment issued by
the Competent Court in this respect will be subject to appeal, and the judgment
on that appeal will be final and non-appealable.
The
Administrator will, every three (3) months or when so requested by the
Competent Court, submit to the Competent Court a report on the accounts and
expenditure of the Estate.
The
Competent Court may, upon the request of the Administrator or any
of the heirs, issue a judgment or an order to:
1. distribute the Estate to
heirs and beneficiaries of Wills, if any, after collecting the
rights and performing the obligations of
the Estate;
2. distribute the Estate before fulfilling
its obligations, subject to allocating a part thereof
to settle these obligations, where the
entire Estate is not required to be used to satisfy its debts;
3. temporarily deliver to one or
more heirs, against submission of relevant
guarantees,
their shares in the Estate or any part
thereof, if the Estate is not required
to be liquidated; or
4. extend the period of Estate administration for the period it deems necessary in
special and justifiable circumstances.
Subject
to the international conventions and treaties to which the UAE is a party,
the Estate of an intestate who leaves no heirs will devolve to the Public
Treasury of the Government of Dubai.
a.
Depending
on the place of registration of a Will, the Dubai Courts or the
DIFC Courts will have jurisdiction to determine disputes related to that Will.
b.
The
judgments and decisions issued by the Competent Court in
respect of the Wills and Estates governed by this Law will be enforced in
accordance with the rules and procedures adopted by the Competent Court in this
respect.
a. Where
the remuneration of an Administrator or Executor is not determined in the Will
or by agreement of the heirs, the Competent Court will determine it based on a
written application submitted by the Administrator or the Executor, as the case
may be.
b. The
remuneration of an Administrator or Executor will be a preferential debt and
will rank second in priority to judicial fees.
An
Administrator, an Executor, or any of their subordinates
may not sell or purchase the willed property or
Estate property for
his own account or for the account of others;
and may not have
a direct or indirect interest in any project or agreement related
to the willed
property or Estate property, unless he
is so authorised
by the testator or the Competent Court.
a. In
return for the services it provides in accordance with this Law, the Dubai
Courts will charge the fees prescribed by a resolution of the Chairman of the
Executive Council.
b. In
return for the services it provides in accordance with this Law, the DIFC
Courts will charge the fees prescribed by a resolution of the Chairman of the Dubai
International Financial Centre.
All
Wills of non-Muslims which are registered with the Dubai Courts or with the
DIFC Courts prior to the effective date of this Law will be deemed valid as if
made in accordance with the provisions of this Law.
The
Chairman of the Executive Council will issue the resolutions required for the
implementation of the provisions of this Law.
Any
provision in any other legislation will be repealed to the extent that it
contradicts the provisions of this Law.
This
Law will be published in the Official Gazette and will come into force on the
day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler
of Dubai
Issued in Dubai on 18
October 2017
Corresponding to 28 Muharram 1439 A.H.
©2017 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.