As per the clarification, when a foreign resident passes away in the UAE without identifiable legal heirs and without a valid Will, their assets will be transferred to a supervised charitable endowment.
“This reform resolves a long-standing issue in succession procedures. In the past, estates of expatriates who died without a Will and without heirs often stayed frozen or remained under extended court supervision. The new regulation offers a clear legal outcome, guaranteeing that these assets are preserved and used for public benefit through regulated oversight,” according to Ms. Jahnavi Kohli, Partner in law firm ANB Legal.
The key features of the reform include automatic transfer of assets to a supervised charitable endowment when no heirs. Such endowment will be administered by a competent authority.
For foreign residents with assets in the UAE, the message is clear: estate planning
and drawing up and registration of a Will remain crucial. A valid Will guarantees that
assets pass to the designated beneficiaries rather than defaulting into a charitable
endowment, Ms. Kohli added.
