How to approach a will and estate plan covering assets in the UAE

A family with assets in the UAE and a principal based in Hong Kong sits at one of the more demanding intersections in private wealth planning. The UAE's legal system draws on civil law traditions, federal legislation, and – for Muslim nationals – Sharia (Islamic succession law, which governs distribution among heirs according to fixed shares). Hong Kong operates a common-law system with testamentary freedom and no forced-heirship regime. The two systems do not speak to each other without deliberate structuring.

A will and estate plan covering assets in the UAE requires a coordinated structure that addresses the UAE's recognition rules for foreign wills, the specific legal framework of each emirate where assets are located, the forced-heirship question for non-Muslim expatriates, and the interaction with the principal's home or residence jurisdiction – in this context, Hong Kong. The Trustee Ordinance (Cap. 29), substantially reformed with effect from 1 December 2013, provides one anchor point on the Hong Kong side; the UAE's dedicated expatriate-will registries provide another on the UAE side. Getting the sequence right determines whether the plan will work when it is needed.

This guide works through the planning sequence step by step. It covers the decision the principal faces, the gates at each stage, the common structural mistakes, and a practical checklist for reviewing whether a current plan is fit for purpose.

What does a UAE estate plan actually need to address?

A UAE estate plan for an expatriate principal must address four distinct questions before any document is drafted. Missing any one of them creates a gap that probate proceedings – in Hong Kong, the UAE, or both – will expose at the worst possible time.

The first question is asset classification. The UAE does not treat all assets identically. Immovable property situated in the UAE is, as a general matter, subject to UAE law regardless of where the owner is domiciled or what a foreign will says. Movable assets – bank accounts, listed securities, interests in companies registered outside the UAE – are treated differently and may follow the principal's national or domiciliary law in some circumstances. Identifying which category each asset falls into is the starting point, not an afterthought.

The second question is emirate-level variation. The UAE is a federation of seven emirates, and the legal position on wills and succession is not uniform. Dubai and Abu Dhabi have each established dedicated registration systems for expatriate wills. A will registered under one emirate's system covers assets situated in that emirate. Assets in a different emirate may need a separate registration or a separate document. The plan must map the asset locations before settling on the registration strategy.

The third question is the Sharia interaction. For non-Muslim expatriates, the UAE has introduced legislative mechanisms that permit foreign nationals to elect for their home-country law to govern their estate, provided certain conditions are met and the election is properly documented. This is a material development. Without a clear election, there is a real risk that default succession rules – which for some assets and some emirate courts historically drew on Sharia principles – will apply regardless of the principal's intentions.

The fourth question is recognition: will the UAE probate outcome be accepted in Hong Kong, and vice versa? If a Hong Kong grant of probate needs to be resealed or re-obtained for UAE assets, the plan should account for that step in advance. In our cross-border practice, the overlap between these four questions is precisely where families encounter delays and disputes.

How does the Hong Kong – UAE cross-border interface work in practice?

Hong Kong and the UAE have no bilateral treaty on succession or probate recognition. That absence shapes the entire planning structure. Each jurisdiction proceeds on its own terms, and the principal's estate plan must be designed to work within both systems simultaneously rather than relying on one to accommodate the other.

On the Hong Kong side, the legal position is straightforward in one respect. The Trustee Ordinance (Cap. 29) as reformed in 2013 abolished the rule against perpetuities for Hong Kong trusts, protected trusts against foreign forced-heirship claims through strengthened firewall provisions, and confirmed that a settlor may reserve certain powers without invalidating the trust. Hong Kong law also has no forced-heirship regime of its own. A principal with Hong Kong-sited assets – including shares in a Hong Kong holding company – can structure a Hong Kong will or a Hong Kong trust with wide testamentary freedom.

The UAE side is more layered. The UAE has enacted federal succession legislation that, for expatriates who make a qualifying election, allows a non-Muslim foreign national's home-country law to govern movable property. The election must be in the right form and registered in the right place to be effective. Immovable property in the UAE generally remains subject to UAE law regardless of such an election.

What does this mean for a Hong Kong-based principal? It means the structure typically has two limbs. A Hong Kong will or trust governs Hong Kong-sited assets. A separate UAE-registered will – or a UAE structure such as a foundation or an emirate-level registered will – governs UAE-sited assets, with an explicit election for home-country law where available and appropriate. The two documents must be carefully cross-referenced so that neither accidentally revokes or conflicts with the other.

The cross-border enforcement point matters here. If the principal dies in Hong Kong, the grant of probate obtained in Hong Kong may not automatically extend to UAE assets. Parallel proceedings or a separate UAE probate process may be required. Planning for that in advance – through asset titling, beneficiary designations, or registered UAE wills – reduces the burden on the family significantly. We regularly advise on this specific interface between the common-law probate system and the UAE's registry-based mechanisms.

For a deeper look at how Hong Kong trust and succession structures interact with a second jurisdiction, see our analysis of succession planning across Hong Kong and Cyprus, which addresses a comparable two-system structuring challenge.

The sequence above describes the standard cross-border position. Your matter turns on the documents you already hold, the jurisdictions actually engaged, and the order in which steps must be taken – which is where the route is won or lost.

To discuss how the Hong Kong – UAE interface applies to your current position, contact us at info@lockhartyip.com.

What is the planning sequence, and what is the gate at each step?

The planning sequence for a UAE estate plan has five stages. Each carries a gate – a condition that must be satisfied before the next stage adds value. Moving to the next stage without clearing the gate is the source of most structural errors we see.

Stage 1: Asset mapping. The starting point is a complete, jurisdiction-by-jurisdiction inventory of assets: what type, where legally situated, how titled, and under what law. This is not a financial exercise – it is a legal classification exercise. The gate is a clear answer to the question: which assets are subject to UAE law, which to Hong Kong law, and which to a third jurisdiction?

Stage 2: Domicile and residence assessment. A principal's domicile at death is a critical connecting factor in private international law. Where the principal is domiciled (in the technical legal sense, which differs from tax residence or physical presence) may determine which country's law governs the distribution of movable property. The gate is a considered view on the principal's domicile and residence profile, and whether any steps are needed to clarify or shift that position before documents are drafted.

Stage 3: Structure selection. With assets mapped and the domicile question addressed, the structure can be selected. For most Hong Kong-based expatriate principals with UAE assets, the structure involves at minimum: (a) a Hong Kong will or trust covering Hong Kong-sited assets; (b) a UAE-registered will covering UAE-sited assets, with an appropriate law election for movables; and (c) clear cross-referencing between the two documents. Where the principal also holds assets in other jurisdictions – the Cayman Islands, BVI entities, UK property, for example – those must be incorporated into the same map and addressed by the same coordinated structure. The gate is a signed-off structure that all advisers have reviewed for internal consistency.

Stage 4: Drafting and registration. The documents are drafted in the selected form, reviewed for cross-border consistency, and then executed and registered in the required jurisdictions. In the UAE, registration of an expatriate will with the relevant emirate-level registry is a condition of that will being recognised and given effect without a contested court process. A will that is not registered in the appropriate UAE registry may be ignored or contested. Execution formalities – signatures, witnesses, notarisation, translation – vary by jurisdiction and must be strictly observed. The gate is a set of documents that are executed correctly, registered where required, and stored accessibly.

Stage 5: Review and maintenance. A will and estate plan covering UAE assets is not a one-time exercise. The UAE's legal regime for expatriates has evolved, and further developments are possible. Asset maps change. Family circumstances change – marriages, divorces, births, deaths, relocations. The plan should be reviewed on a fixed schedule, and whenever a material change occurs. The gate is a live, current plan that reflects the principal's actual circumstances and the current legal position in each relevant jurisdiction.

What are the most common structural mistakes – and how does a careful plan avoid them?

The most common mistake is using a single Hong Kong will to purport to cover all assets globally, including UAE real estate and UAE bank accounts. This is almost always inadequate. A Hong Kong grant of probate does not automatically extend to UAE-sited assets. UAE immovable property is subject to UAE law regardless of what a foreign will says. A plan that rests on a single Hong Kong document for a multi-jurisdiction estate will require additional and often costly proceedings in the UAE at the time of death.

The second common mistake is failing to make – or properly document – the UAE law election for movable property. The mechanism that permits a non-Muslim expatriate to elect for home-country law is a significant advance. But it is not automatic. Without a valid, registered election in the right form, the default position applies. Our desk regularly sees cases where a principal assumed the election was in place but had not completed the formal registration step.

The third mistake is conflicting documents. A later will that revokes "all prior wills" without carve-outs can inadvertently revoke a UAE-registered will, leaving the UAE assets without effective testamentary provision. The drafting of each document must address the scope of any revocation clause with precision.

The fourth mistake is neglecting company structures. Many principals hold UAE real estate through a UAE onshore company, a free-zone entity, or a BVI or Cayman vehicle. The succession analysis for an interest in a company is different from the succession analysis for direct real estate ownership. Where assets are held through intermediary entities, succession planning must address the ownership chain at each level – not just the underlying asset.

A practical rule: if the estate plan has not been reviewed by counsel who can consider both the UAE and the Hong Kong positions at the same time, the internal consistency of the plan is not assured. Separately drafted local wills, prepared by advisers who have not reviewed the other documents, is a known source of conflict and cost.

If an earlier filing, structure or enforcement attempt has produced an adverse or stalled result, a second read can identify the strategic error and the routes still available. Write to us at info@lockhartyip.com to discuss a review of an existing plan.

How does the Trustee Ordinance and Hong Kong trust planning interact with UAE assets?

For principals with significant assets and family complexity, a Hong Kong discretionary trust – established under the Trustee Ordinance (Cap. 29) as reformed – offers a structure that can hold assets across multiple jurisdictions while keeping succession governed by Hong Kong law to the extent possible.

The 2013 reform of the Trustee Ordinance provides several relevant protections. The firewall provisions mean that a foreign forced-heirship claim – from the UAE, the Mainland, or another civil-law system – will not, as a matter of Hong Kong law, be able to attack assets held in a Hong Kong-law trust. The settlor can reserve meaningful powers without the trust being invalidated. There is no rule against perpetuities for Hong Kong trusts established after the reform.

Does this mean a Hong Kong trust solves the UAE problem entirely? Not quite. UAE immovable property cannot simply be sheltered inside a Hong Kong trust without careful structural work: the title to the UAE property must be held in the right legal form, the UAE transfer and registration requirements must be observed, and the UAE's own position on the recognition of foreign trust structures must be considered. A Hong Kong trust that purports to hold UAE real estate without satisfying UAE legal requirements for the transfer of that property may be effective as a matter of Hong Kong law but ineffective as a matter of UAE law – which is the jurisdiction that controls the land registry and the asset.

Where a trust structure is used, the practical approach is typically to hold UAE assets through a UAE-compliant entity (a UAE company or a properly structured free-zone vehicle), with the shares or interests in that entity held by the trust. The will and trust structure then addresses the shares rather than the underlying real estate directly. This separation of layers is not unusual in cross-border structures, but it requires careful attention at every level of the chain. See our broader discussion of private wealth structuring for the full range of approaches we advise on across this practice.

Decision checklist: is your current plan fit for purpose?

The following checklist is designed for a principal or their in-house adviser to identify gaps in an existing plan. A "no" or "uncertain" answer to any question indicates a review is warranted.

• Is there a current, executed will that was specifically drafted to address UAE-sited assets?
• Is that will registered with the relevant emirate-level registry in each emirate where assets are located?
• If the principal is a non-Muslim expatriate, has a valid election for home-country law been made and registered in the appropriate form under UAE legislation?
• Have all documents been cross-referenced to ensure no revocation clause inadvertently cancels a will in another jurisdiction?
• Is there a separate document – a Hong Kong will, a trust deed, or equivalent – covering Hong Kong-sited assets?
• Have assets held through intermediary entities (BVI, Cayman, UAE company, free-zone vehicle) been addressed at each level of the ownership chain?
• Has the plan been reviewed following any change in the principal's domicile, residence, family circumstances, or the UAE's expatriate succession legislation?
• Is there a plan for obtaining a UAE probate or recognition order following a death, without relying solely on a Hong Kong grant of probate?
• Has counsel reviewed both the Hong Kong and UAE positions together, rather than in isolation?

A complete estate plan covering UAE assets is one that answers "yes" to each of these questions and can be executed in a defined sequence by the family and their advisers without a court battle.

What the objection "I have a will already" misses

The most common objection we hear from principals who have not yet built a coordinated cross-border plan is a version of "I have a will already." This is understandable. Many Hong Kong-based principals have a well-drafted Hong Kong will that covers their estate in general terms. The difficulty is that a Hong Kong will, drafted without specific reference to UAE assets and not registered in the UAE, will not do the work that needs to be done in the UAE.

Probate courts in the UAE are not bound to give effect to a foreign will simply because it is valid in its country of origin. In practice, an unregistered foreign will covering UAE assets creates a contested process – typically lengthier, more expensive, and more uncertain than the principal intended. For families where the UAE asset represents a significant portion of the estate (a Dubai apartment, an Abu Dhabi investment property, a UAE bank account with a substantial balance), this gap in the plan is a material risk.

A second version of the same objection is "my assets are in a company, so the will doesn't matter." Whether this is correct depends entirely on how the company interest is held, where the company is incorporated, and what the succession documents at the company level say. In many cases, the company structure does not sidestep the succession question – it simply moves it one level up the chain.

The planning work is not especially complicated once the asset map is clear and the structure is agreed. The difficulty is that it requires coordinated advice across at least two jurisdictions – UAE and Hong Kong – and careful document management over the long term. That coordination is precisely what an international cross-border counsel is positioned to provide.

Related practices

Related practices

• Private Wealth – succession, trusts, family office and asset protection across jurisdictions
• Holding Structures – review and design of cross-border holding and operating entity arrangements

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This publication is general information and does not constitute legal advice. For advice on your situation, contact info@lockhartyip.com.