Last Updated: October 1, 2026
What a UAE estate includes, and what passes outside it
The estate is the property and financial rights the deceased left. Most of what a person owned in the UAE is in it: bank balances, property, vehicles, company shares, investments and money owed to them. It is administered before it is distributed, with funeral costs and debts settled first. Some benefits pass under their own rules instead, chiefly death insurance to a named beneficiary. Classification decides both the paperwork and who receives what.
Law stated as at September 2026. Scope: federal onshore law, with Dubai procedure where stated. Free zone companies, DIFC and ADGM trusts and foundations, and foreign assets are noted where they differ. Federal Decree-Law 25/2025 entered into force on 1 June 2026; deaths and proceedings before that date may require analysis under the former law and the transitional provisions.
Why classification comes first
When someone dies, the family’s first instinct is to list what they had. That is right. The next step, often missed, is to sort the list into three groups: what forms part of the estate and passes through the court process; what is paid under its own contractual or statutory rule to a defined recipient; and what needs case-specific analysis before anyone can say which.
The distinction matters for two reasons. The first is paperwork: estate assets are released only against the court’s inheritance instrument, presented to each institution with the heirs’ identification and often a court letter, and after the estate’s debts have been dealt with; items outside the estate are released under their own rules, usually to a specific person. The second is who receives what: an estate asset is shared among the heirs in the proportions the court determines; an asset outside the estate goes to the person its own rule identifies.
What the estate is, and what comes off it first
Article 200 of Federal Decree-Law No. 41 of 2024 defines the estate as the property and financial rights left by the deceased. Under Article 1117 of Federal Decree-Law No. 25 of 2025, an heir acquires by inheritance the immovable property, movables and rights forming part of the estate.
Under Article 201 of FDL 41/2024: proper preparation of the funeral; settlement of debts; execution of the will within one-third unless the heirs consent to more; then division among the heirs.
Under Article 25 of Cabinet Resolution 122/2023 (Civil Personal Status): funeral expenses; expenses of managing the estate and executing the will; remuneration of the executor or administrator; the estate’s debts in their statutory priority; all to be met before the will is executed or the assets distributed.
The architecture is that debts are met from the estate before distribution. An heir’s separate wealth is not exposed merely because the heir succeeds to the estate, save that Article 1137 of FDL 25/2025 lets an unsecured creditor omitted from the inventory proceed against an heir up to the value that devolved to that heir.
What forms the estate
Bank balances and deposits
Every account in the deceased’s sole name is an estate asset. For a joint account, only the deceased’s share is in the estate; the surviving holder keeps their own share. Under Article 379(4) of Federal Decree-Law No. 50 of 2022, the surviving joint holders must notify the bank within ten days and the bank suspends withdrawals up to the deceased’s share of the balance at the date of death until a successor is appointed. See The joint account myth and Frozen bank accounts after a death.
Real property
Land, villas, apartments and commercial units registered in the deceased’s name are estate assets, as is the deceased’s share of jointly registered property. Off-plan units are estate assets with the developer’s contract attached. A mortgage does not remove the property from the estate; it is a debt secured on it. See The family home after a death.
Vehicles
A vehicle registered to the deceased is an estate asset. Registration cannot be transferred, and the vehicle cannot be sold, until the heirs are confirmed. A car loan continues as an estate debt.
Company shares and business interests
Mainland LLCs. Under Federal Decree-Law No. 32 of 2021 (as amended by FDL 20/2025), the death of a partner does not dissolve a limited liability company unless the memorandum provides otherwise, and the deceased partner’s stake passes to the heirs. Where several heirs co-own one stake, Article 77 makes the stake indivisible and requires them to act through a designated representative. Article 14(4)(b), inserted by FDL 20/2025, now allows the memorandum to regulate the mechanism for dealing with a deceased partner’s stake, including a pre-emptive right for the other partners.
One-person companies. Article 71(2) allows an LLC to be owned by one person. On the owner’s death the company is dissolved unless the heirs elect to continue it and regularise its position. The heirs should act early: the company’s bank accounts and contracts may be paralysed until that election is taken and registered.
Partnerships. A general or limited partnership is ordinarily dissolved on a partner’s death unless the memorandum provides for continuation; the remaining partners may, by unanimous decision within sixty days, continue the company.
Free zone and foreign companies. Under Article 5, the Companies Law does not apply to a free zone company where the free zone’s own regulations contain a special provision. Each free zone’s registrar procedure governs the transfer. Foreign companies are governed by the law of the place of incorporation.
Investments, securities and digital assets
Brokerage and securities accounts, mutual fund holdings, bonds and sukuk are estate assets, released by the custodian against the inheritance instrument. Cryptoassets held with an exchange or custodian are released under the provider’s terms and deceased-customer process. Assets held in self-custody are estate assets whose recovery depends on access to the keys.
Receivables and claims
Money owed to the deceased forms part of the estate: unpaid salary, rent due, loans, refunds, dividends, and rights with a monetary value including causes of action that survive the death.
Foreign assets
Property, accounts and shares outside the UAE are part of the worldwide estate, but a UAE inheritance instrument does not transfer them. Each country’s own probate and registry rules apply. Families with assets in India should read Repatriating an inheritance from the UAE to India.
What passes under its own rules
Life insurance
The amounts agreed to be paid upon the death of the insured do not form part of the insured’s estate (Article 985). The insured may designate the persons to be paid (Article 981(1)). Where the insurance is for the benefit of the insured’s heirs, the sum is divided among them according to the statutory shares, still outside the estate (Article 981(2)).
Qualifications: the policy wording governs what is payable; a policy assigned to a lender pays the lender first; under Article 980 a beneficiary who intentionally causes the insured’s death is deprived of the sum. The common mistake: not knowing the policy exists. Ask the employer and every lender.
Final pay, end of service benefits and death compensation
Article 15 of Federal Decree-Law No. 33 of 2021 requires the employer to hand over outstanding wages and the end of service gratuity to the worker’s family, or a nominated family member, within ten days. Article 37 provides for work-injury death compensation equal to 24 months’ basic wage, distributed under the executive regulation.
Article 15 governs how the employer pays and is discharged. It does not expressly exclude those sums from the estate and does not determine ownership among the heirs. Final pay and gratuity are therefore best treated as estate assets that reach the family by a special payment route: the recipient should hold the payment separately until classified under the applicable succession regime.
Trusts, foundations and nominee arrangements
A registered trust under Federal Decree-Law No. 31 of 2023 has separate legal personality and its assets are not the trustee’s estate. A DIFC or ADGM trust or foundation is governed by that centre’s own law. A written nominee arrangement depends on its validity, governing law, registration, and the rights of third parties. An undocumented understanding is the weakest case, but the asset is presumptively the deceased’s, and beneficial ownership must be proved against the estate.
Three tables: where each asset sits
| Asset | Who to notify | What releases it |
|---|---|---|
| Bank balances (sole name) | Each bank, in writing | Inheritance instrument, heirs’ identification, any court letter |
| Deceased’s share of a joint account | The bank, within ten days | Inheritance instrument for the deceased’s share |
| Real property (including off-plan) | Land department; mortgagee; developer | Inheritance instrument, court letter, heirs’ ID, any NOC |
| Vehicles | Registering authority; insurer; financing bank | Inheritance instrument and registration transfer |
| Company shares | Partners; licensing authority; company bank | Inheritance instrument, then transmission or buy-out steps |
| Securities, funds, digital assets | The custodian or platform | Inheritance instrument and the custodian’s claim process |
| Receivables and claims | The debtor, in writing | Inheritance instrument, then demand or proceedings by executor |
| Benefit (outside the estate) | Who to notify | What releases it |
|---|---|---|
| Death insurance to named beneficiaries | The insurer | Insurer’s claim process and beneficiaries’ identification |
| Work-injury death compensation | Employer and MOHRE | Distribution under the executive regulation |
| Survivor pensions (UAE/GCC nationals) | The pension authority | The scheme’s own entitlement rules |
| Asset needing analysis | Why it needs analysis |
|---|---|
| Assets registered in the deceased’s name but said to be owned by another | Beneficial ownership must be proved; undocumented understandings do not remove the asset |
| Assets in a trust, DIFC/ADGM structure or nominee arrangement | The governing instrument and law decide whether the asset is outside the estate |
| Foreign assets | Governed by the law and procedure of the country where they are |
| Free zone company shares | The free zone’s regulations govern in the first instance |
| Final pay and gratuity | Employer’s payment route settled; ultimate ownership not conclusively determined |
What the inventory should look like
Estate document checklist
- Death certificate (original, with Arabic version or licensed translation)
- Passports and Emirates IDs of the deceased and every heir
- Marriage certificate and birth certificates establishing the heirs, legalised where issued abroad
- Any will, with registration details, and any nomination of an executor
- Bank account list with statements showing the balance at the date of death
- Title deeds, SPAs and mortgage documents; tenancy contracts and deposits
- Vehicle registration cards and finance agreements
- Trade licences, memoranda of association, share certificates and registers
- Brokerage, fund and digital asset account details; any self-custody wallets
- Insurance policies, including employer group cover and credit life cover
- Employment contract, last payslip and the employer’s end of service statement
- Debts owed by the deceased: loans, cards, rent, service charges, fees
- Debts owed to the deceased: salary, rent, loans made, deposits, refunds, claims
- Assets outside the UAE, with the country and the holding institution
- Contact details of all heirs, and whether any is under eighteen
Frequently asked questions
Is life insurance part of the estate in the UAE?
No. Under Article 985 of Federal Decree-Law 25/2025, the amounts agreed to be paid on the insured’s death do not form part of the estate. The insurer pays the beneficiaries under the policy. Where the policy names the heirs as a class, Article 981(2) divides the sum among them according to the statutory shares, still outside the estate.
Who receives end of service benefits when an employee dies?
For private-sector employment under Federal Decree-Law 33/2021, the employer must pay outstanding wages and the gratuity to the worker’s family within ten days (Article 15). That governs the employer’s payment and discharge; it does not exclude the sum from the estate or decide ownership among the heirs, so the recipient should hold it separately until classified under the applicable succession regime.
Are heirs personally liable for the deceased’s debts?
Not merely by inheriting. Debts are settled from the estate before distribution (Articles 1134 and 1138 of Federal Decree-Law 25/2025). An heir’s own wealth is exposed only on an independent basis such as co-borrowing or a guarantee, save that Article 1137 lets an unsecured creditor omitted from the inventory proceed against an heir up to the value that devolved to that heir.
What happens to a deceased person’s company shares?
The shares form part of the estate. In a mainland LLC the death does not dissolve the company unless the memorandum provides otherwise, the stake passes to the heirs, several heirs act through one representative (Article 77), and the memorandum may provide a buy-out mechanism. A one-person company is dissolved unless the heirs elect to continue it. Free zone and foreign companies follow their own regulations. The register and licence must be amended after the court confirms the heirs.
A note on getting help. If you are building an inventory after a death, we can classify each asset, tell you which institution to notify and what document each will require, and set out the route to the inheritance instrument. Corporate steps for company shares, and representation before the mainland courts, are arranged through appropriately licensed practitioners.
Write to us through the consultation form or at [email protected], with a list of the assets and the emirate in which each is held.
This article is general information about UAE law as at the date stated. It is not legal advice, and how the law applies depends on the facts of each estate.
Abid Millath, Managing Partner, Millath and Associates
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