New UAE Law Redirects Unclaimed Expat Assets to Charities

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Estate planning urgency: New law redirects unclaimed expat assets to UAE charities.

Two federal decree-laws that took effect on January 1, 2026 introduce a definitive legal pathway for expatriate assets when no heirs can be identified. Under Federal Decree-Law No. 51 of 2024 (Civil Transactions Law) and Federal Decree-Law No. 41 of 2024 (Personal Status Law), financial assets located in the UAE belonging to a deceased expatriate without legal heirs will now be designated as a charitable endowment, or Waqf.

The provision applies when the expatriate dies without a valid will registered in the UAE, when no spouse, children, parents, or siblings can be identified, and when the assets are physically located within the UAE. This includes bank accounts, real estate holdings, and business shares.

Ending years of legal uncertainty

Previously, when expatriates died without wills or identifiable heirs, their assets remained in legal limbo indefinitely with no clear resolution pathway. Banks could not lawfully distribute frozen accounts, and lengthy court processes created uncertainty for creditors, landlords, and employers holding end-of-service gratuities.

According to the UAE Government Media Office, the reforms represent "a pivotal legislative milestone" aimed at making the UAE "a more stable and predictable home for its global workforce." The new framework provides explicit regulatory pathways for handling heirless estates while ensuring assets serve the public good through supervised charitable allocation.

Bank accounts freeze immediately upon death

UAE banks follow strict protocols when an expatriate dies. All accounts are immediately frozen upon notification of death, including joint accounts held with surviving family members. Accounts remain frozen until a court order authorizes release or distribution of funds.

Without a registered will, families face extended probate proceedings and delayed access to essential funds needed for daily living expenses and school fees. Legal heirs must submit comprehensive documentation to UAE courts, including attested death certificates, proof of family relationship, original identification documents, and a complete asset list with supporting ownership documentation.

Employer payment deadlines tightened

Under Ministerial Decision No. 720 of 2023, employers must pay employment entitlements, including end-of-service gratuity, to a deceased employee's family within 10 days of death or notification. If no heir is identified or payment fails within the deadline, the employer must deposit funds into the MOHRE trusts account.

Finance and HR departments must now verify whether deceased employees had registered wills. If not, and no legitimate heirs come forward after court procedures, those funds will ultimately be redirected to the charitable endowment under the new framework. Non-compliance results in administrative suspension of the company until proof of payment is submitted.

Three will registration options for expatriates

To avoid default rules and ensure assets pass to intended beneficiaries, expatriates can register wills through three jurisdictions. Abu Dhabi Judicial Department (ADJD) offers the most cost-efficient option at AED 950 per will with a fully virtual process, though waiting time is approximately 5-6 weeks. Dubai Courts charge AED 2,150 per will with walk-in service typically completed within two days.

The Dubai International Financial Centre (DIFC) charges AED 10,000 for a single will or AED 15,000 for couples after a 50% discount. DIFC wills are conducted entirely in English with no Arabic required, can include assets in multiple countries, and offer full testamentary freedom following common-law principles. Probate is conducted entirely in English within the DIFC court system.

Gender-equal inheritance for non-Muslims

A landmark change under the new framework removes gender as a factor in inheritance shares for non-Muslim expatriates under the default civil regime. Sons and daughters now inherit equal portions when no registered will exists. Under the default rules, 50% goes to the surviving spouse, with the remaining 50% divided equally among children regardless of gender.

The law also lowers the age at which minors can petition a judge to manage inherited assets from 18 (Hijri) years to 15 (Gregorian) years, reflecting the UAE's surge in youth entrepreneurship. A court-appointed judicial assistant oversees decisions to protect the minor's interests.

Strategic actions for expatriates and employers

Legal experts recommend expatriates register a will immediately through DIFC, ADJD, or Dubai Courts to maintain full control over asset distribution. Wills should cover all UAE assets, appoint guardians for minor children, and name executors clearly. Regular reviews are essential as family circumstances or asset portfolios change.

Employers should update onboarding materials to include will registration guidance and verify will status when processing deceased employee benefits. Financial institutions now have clear legal guidance for resolving dormant or disputed accounts, reducing long-running ownership disputes and legal uncertainty.