Legacy Planning

A will is a crucial document when it comes to estate planning. It outlines how your assets will be distributed after your passing and designates a guardian for your children.

In the UAE, registering a will is of utmost importance. Without a registered will, inheritance matters are handled by the UAE Courts according to Sharia Law. This can result in substantial complications for non-Muslim expats, impacting dependent visas, guardianship of minors, and the distribution of their estate. Read more here..

Trusts are legal arrangements that hold assets on behalf of beneficiaries. Although less commonly used in UAE legacy planning, trusts are valuable for tax planning and asset management both domestically and internationally. They provide control over how and when assets are distributed to beneficiaries, avoiding probate and potentially reducing estate taxes and court fees. Expats can benefit from trusts in jurisdictions like ADGM and DIFC, where common law ensures legal protection and distribution according to their wishes. Read more here in our latest blog. Read more here..

Foundations share similarities with trusts in asset management and financial support to designated individuals or organizations. However, there are key distinctions. Trusts are established by trustees who manage assets for beneficiaries, while foundations function like companies, owning assets in their name and having contractual capabilities.

In terms of succession planning, foundations provide more control over asset management and investments, while trusts solely manage assets for beneficiaries.

By understanding the nuances of trusts and foundations in legacy planning, one can make informed decisions for preserving wealth and ensuring the desired distribution of assets. Read more here..

Having a clear understanding of your tax position is crucial when developing a comprehensive legacy plan, especially for business owners and individuals with substantial wealth. Without a suitable business structure to support your succession plan, you risk losing control over your company, reputation, and assets.

Creating a robust succession plan that takes into account your residence, domicile, and any double taxation agreements between the UAE and your home country can help minimize or eliminate unnecessary taxation on your business and estate. Read more here..

Power of Attorney is another critical aspect to consider and an essential component of legacy planning. It establishes who will have the authority to make decisions on your behalf if you become incapacitated or are unable to make decisions for yourself.

Power of Attorney can cover two main areas: financial matters and healthcare. By granting someone of your choosing a POA, you empower them to handle your finances in the event of physical incapacity. Under a POA, you can also authorize someone to make decisions regarding your medical treatment, including the specific treatments you receive, where you receive care, and even whether you receive life-sustaining treatment. Read more here..