Find out more about the different type of DIFC Wills available and how they can serve you best.
Previously, we looked at DIFC Wills, who can register a Will and the registration process. This article shall look briefly at the five different types of Wills which can be registered at the DIFC.
Guardianship Will
A parent’s top priority is the security and wellbeing of their children. This includes ensuring their children are well looked after in the event of their death.
The Guardianship Will allows the appointment of Guardians for your children.
It includes no further provisions and doesn’t cover any distribution of assets. Rather, it’s designed to ensure that your children are placed in the care of their nominated guardians with minimum fuss at an already stressful time.
If you die, the DIFC Courts can issue interim guardianship orders and permanent guardianship orders based on what is stated in your Guardianship Will. It’s recommended that you nominate both interim and permanent guardians.
Property Will
Property is likely to be one of the most valuable assets a person owns, and as such, it’s important to make sure that it’s left to the right people on death. A property passed to an entitled beneficiary under UAE law or Sharia law may result in unnecessary taxation where the recipient is taxed in their home jurisdiction. It may also result in the property passing in a manner which may not reflect your wishes.
The Property Will relates solely to real estate, and can include up to five properties (or a share in up to five) located in the UAE. This can ensure the properties pass to those intended.
Business Owner’s Will
The Business Owner’s Will is designed to protect your business and its assets, and to make sure that they are passed on to the right people when you die.
A Business Owners Will covers up to five distinct shareholdings in the UAE. Presently, the businesses must be either onshore or situated in a free zone. Offshore companies are not eligible.
Financial Assets Will
The Financial Assets Will guarantees that financial assets included within the Will are distributed to the intended beneficiaries as quickly as possible.
The Financial Assets Will can include up to ten separate accounts (or a share of up to ten), must be registered in your name (or jointly with someone else), must be with a bank or brokerage firm that’s registered within the UAE and should only contain moveable assets.
Full Will
A Full Will is the most suitable option for most people. It is flexible and can include all of the provisions contained in the template Wills together with any additional instructions as required by the testator. Whilst the upfront cost is higher than a single template Will, it is more cost effective than registering multiple template Wills.
Specifically, a Full Will includes both guardianship provisions and the distribution of assets. If you don’t yet have children (but plan to have in the future), it is possible to amend the Full Will at a later date to include guardianship instructions.
Single or mirror Wills?
It is possible to register either ‘single’ or ‘mirror’ Wills at the DIFC registry. As the name suggests, ‘single’ is suitable for an unmarried person or where a husband and wife may wish to leave separate provisions, and ‘mirror’ is where the provisions in both a husband and wife’s Will “mirror” each other. The registration fee for a mirror Will is lower than registering two single Wills which can make it more attractive.
Paul Hogarty, Solicitor
Shallon CSP
