A will and estate plan covering assets UAE

A family with assets in the UAE and residence spread across Hong Kong, Europe or the CIS faces a specific legal problem that neither a local UAE notary nor a Hong Kong solicitor can solve alone. The UAE's civil-law inheritance rules – and, for Muslim families, the application of sharia (Islamic law governing succession and family matters) as the default regime – operate in ways that routinely conflict with the estate plans a foreign principal has prepared at home. When a principal dies without a correctly structured plan, the consequences can include asset freezes, protracted UAE court proceedings, and distributions that bear no resemblance to what the family expected.

A will and estate plan covering assets in the UAE requires a cross-border legal structure that addresses the UAE's domestic succession rules, including the potential application of sharia, alongside the laws of every other jurisdiction where the family holds assets or is resident – and a Hong Kong-seated planning exercise is well-suited to co-ordinate that map.

This note explains how Lockhart & Yip approaches an engagement of this kind: the trigger that brings it to a head, the route we run, and the decisions the client must own before any document is signed.

What brings this to a head: the trigger that matters

Most cross-border families do not plan for UAE succession until a concrete event forces the question. A principal taking up residence in Abu Dhabi or Dubai, a family business acquiring a UAE free-zone entity, a real-property purchase on the Palm or in a Dubai freehold area, a planned restructuring of the family holding map before a liquidity event – each of these is a trigger.

The more acute trigger is enforcement risk. The UAE's federal personal-affairs law applies sharia as the default succession regime for all persons who have not registered a valid will under one of the UAE's civil or expatriate-will frameworks. That default applies at the moment of death, not at the moment the family realises it exists. For a non-Muslim expatriate principal with a professionally drafted will in London or Hong Kong, that document may have no effect on UAE-sited assets unless it was registered in the correct UAE registry before death and complies with the applicable UAE rules for its recognition.

In our cross-border practice, we regularly see the consequences of this gap. An estate plan that functions well in its home jurisdiction can produce the opposite result in the UAE if the local succession piece was left to chance.

The second trigger is the family's broader cross-border map. A principal whose assets span the UAE, Hong Kong, a BVI holding entity and a European property portfolio is not facing one succession question. They are facing four overlapping ones. The interaction between the UAE rules and Hong Kong's own succession regime – which has no forced-heirship requirement and operates on testamentary freedom – is the interface we address first.

How does the UAE's succession regime interact with Hong Kong law?

Hong Kong operates a common-law succession regime under the Wills Ordinance, which gives a testator broad testamentary freedom with no forced-heirship requirement. A Hong Kong-sited asset passes according to a valid will, or on intestacy under Hong Kong's statutory rules, without any mandatory share reserved for children or other relatives. That position contrasts sharply with the UAE's framework.

In the UAE, the applicable succession rules depend on the religion of the deceased and, for non-Muslims, the framework under which any will is registered. The UAE has progressively expanded the options available to non-Muslim expatriates. The Abu Dhabi Judicial Department operates a dedicated non-Muslim personal-status court. Dubai's DIFC Courts and the broader DIFC Wills Service Centre allow non-Muslims to register wills over DIFC-registered assets and, in some cases, over onshore UAE assets. Each registry has its own perimeter of coverage and its own requirements for recognition.

A principal who holds assets in multiple UAE free zones and onshore simultaneously may need more than one instrument registered in more than one registry. The question of which assets each instrument covers is the most commonly misunderstood point. Hong Kong-based counsel co-ordinating with UAE-admitted counsel is the appropriate model for getting this right, because neither jurisdiction's rules operate in isolation.

What Hong Kong adds to the equation is the seat for the overall estate plan. Hong Kong law has no forced-heirship regime and no rule against perpetuities for trust structures reformed since 1 December 2013. Where a principal wants to place offshore or Hong Kong-sited assets into a trust and use that structure as the primary succession vehicle, Hong Kong trust law – governed by the Trustee Ordinance (Cap. 29) as substantially reformed in 2013 – provides a stable, well-tested foundation. The interaction with UAE recognition of trust structures is a separate question that the plan must address explicitly.

The documents and decisions the client must own

Before a single document is drafted, the client must make a set of decisions that no adviser can make for them. What is the intended distribution across the family? Are all beneficiaries in agreement, or is there a dispute risk? What is the client's religious status for the purposes of UAE classification? Where does the client intend to be resident and domiciled at the time of death – and is that different from today?

These questions are not administrative. They determine which legal instruments are available, which registries are relevant, and which succession rules the plan is designed to work around or work with.

The documentary output of a well-run engagement typically includes: a UAE-registered will (or wills, if the asset map spans multiple registries), a Hong Kong will covering Hong Kong-sited assets, an offshore will or trust instrument covering BVI or Cayman-held entities, and a co-ordination memorandum that maps how each instrument is intended to interact. Where a trust structure is used, the trust deed, the letter of wishes, and any ancillary documents form part of the suite.

The client must also own the maintenance obligation. A will is not a permanent solution. A UAE-registered will that was accurate at execution becomes inaccurate when the asset map changes – and most active family office portfolios change materially every two to three years. The plan must include a review trigger, not just a filing.

The cross-border interface: Hong Kong, the UAE, and the family's full map

The cross-border interface in this engagement sits at the intersection of three legal systems, not two. First, UAE domestic law – and the applicable UAE registry framework – governs the UAE-sited assets. Second, Hong Kong law governs Hong Kong-sited assets and, where a Hong Kong trust is used, the trust instrument itself. Third, the law of the principal's domicile at death has residual relevance for the overall estate, particularly for movable assets in jurisdictions that apply a domiciliary-law test.

For a principal domiciled in the UAE at death, UAE succession rules apply to all their movable property as a matter of UAE private international law. That means the UAE's framework reaches beyond the UAE's borders unless the plan has addressed this explicitly – for example, by using a trust structure or offshore holding vehicle that substitutes a different governing-law analysis.

For a principal who retains Hong Kong residence or domicile, the analysis differs. Hong Kong's private international law applies the law of the situs for immovable property (meaning UAE law governs UAE land and property) and, for moveables, the law of the domicile. A Hong Kong-domiciled principal's moveable estate would, in principle, pass under Hong Kong law – but only if UAE courts are prepared to apply Hong Kong law to UAE-sited moveables, which is not guaranteed.

This is precisely the interface where a single-jurisdiction view fails. The engagement requires an adviser who can hold both sides of the border simultaneously and co-ordinate with UAE-admitted counsel to validate the local recognition steps.

In our cross-border practice, we have acted on family-office succession matters where the principal's asset map spanned the UAE, Hong Kong, and one or more offshore centres, and where the absence of a co-ordinated plan had already created a dispute risk within the family. The sequence we run is designed to resolve that risk before the triggering event, not after.

How we run the engagement: step by step

The engagement opens with a structured asset and residence map. We document every jurisdiction where the principal holds assets, every entity through which those assets are held, and the residence and domicile position of the principal and, where relevant, the beneficiaries. This map is the foundation of the plan; without it, any instrument drafted is likely to be incomplete.

The second step is a succession-law analysis across the relevant jurisdictions. We assess which succession rules apply to which assets under which choice-of-law analysis, identify where the UAE's rules apply by default, and identify where the principal has a genuine choice of governing law. We also assess whether any existing documents – a prior will, a trust deed, a shareholder agreement – contain succession-related provisions that interact with the new plan.

The third step is the structural design. For most cross-border UAE-facing families, this involves a combination of: a UAE-registered will covering UAE-sited assets, co-ordinated with locally licensed UAE-admitted counsel; a Hong Kong will or trust instrument covering Hong Kong-sited assets; and, where offshore entities are in the structure, an appropriate instrument covering those interests. We prepare the Hong Kong documents and co-ordinate the overall plan; locally licensed counsel in the UAE prepare and register the UAE instruments.

The fourth step is the integration review. Before any instrument is executed, we review the full suite of documents as a set and confirm that they are internally consistent – that the same assets are not claimed by two instruments and that the distribution mechanics work as intended across all jurisdictions.

The fifth step is execution and registration. Each instrument is executed in the manner required by its governing law. The UAE-registered will requires registration with the relevant UAE registry; the Hong Kong will requires execution in accordance with the Wills Ordinance. We co-ordinate the sequencing of these steps and confirm that the registration requirements have been met.

The engagement closes with a maintenance protocol: a written record of the plan, the documents, the registries, and the review triggers.

Common mistakes and the risks that foreign principals carry

The most common mistake is the single-will assumption: the belief that a will drafted and validly executed in the UK, Hong Kong, or Germany will be recognised in the UAE for UAE-sited assets without further steps. It will not, as a general matter. The UAE requires assets within its jurisdiction to be administered under UAE procedure, and a foreign will needs to go through a UAE recognition process that may or may not succeed depending on how the will was drafted, whether it was apostilled, and whether its contents are compatible with UAE public policy.

The second mistake is the free-zone isolation error. A principal who holds assets in a DIFC entity and a non-DIFC onshore UAE entity, and who registers a DIFC will covering the DIFC assets, may believe the full UAE picture is covered. In most cases, it is not. The DIFC Wills Service Centre's perimeter does not automatically extend to onshore UAE real property or to assets held through UAE mainland entities unless the registered will specifically covers those assets and the relevant registry accepts it on that basis.

The third mistake is the trust-as-complete-solution assumption. A Hong Kong discretionary trust can shelter Hong Kong and offshore assets from the UAE's default succession rules in many structures – but only if the structure genuinely transfers the beneficial ownership interest before death, if the trust deed's governing law is respected by the relevant courts, and if the UAE-sited assets are not themselves inside the trust. UAE-sited real property held in a principal's personal name does not become a trust asset by virtue of a Hong Kong trust deed that says it does.

The fourth mistake is delay. The window to register a will in the UAE is open during the principal's lifetime. After death, the family faces the UAE court succession process, which is longer, more costly, and produces outcomes that are determined by the applicable succession rules rather than the principal's intentions.

The sequence above describes the standard risk picture. Your matter turns on the specific assets held, the jurisdictions engaged, and the succession-law analysis that applies to your family's precise map – which is where the structuring decision is made or lost.

To discuss the documents and decisions your cross-border estate plan requires, write to us at info@lockhartyip.com.

Micro-scenarios: what this looks like in practice

A European principal with UAE residence, a Dubai freehold apartment in personal name, a DIFC-registered operating company, and a BVI holding entity above a Hong Kong sub-holding came to us in late 2025. Their existing estate plan was a single will executed in their home jurisdiction. Analysis confirmed that the will would not be recognised in the UAE without a formal UAE court recognition process, that the DIFC asset was partially covered by the will's terms but the freehold property was not, and that the BVI entity's succession was unaddressed. We co-ordinated a three-instrument plan: a DIFC-registered will covering the DIFC assets, a separate instrument addressing the onshore UAE property through UAE-admitted counsel, and a Hong Kong trust instrument covering the BVI and Hong Kong interests. The documents were executed and registered within one planning cycle.

A separate matter involved a CIS-origin family with Gulf and Hong Kong assets and a principal who had not resolved their domicile position. The uncertainty over domicile meant that two potentially applicable succession regimes competed for the same moveable assets. We worked with the family to first resolve the domicile question as a factual matter – documenting the connections that determined the answer – and then built the succession plan on that foundation. The domicile analysis materially changed the choice of governing law for the trust instrument and the sequencing of the UAE registration.

Decision matrix: situation, instrument, route, timing, and risk

A non-Muslim expatriate principal with UAE freehold property, no existing UAE will, and an estate plan executed outside the UAE should register a UAE will covering those assets as a priority. The instrument is a UAE-registered will; the route is registration with the Abu Dhabi Judicial Department or the DIFC Wills Service Centre depending on the asset type; the timing is before any change in health or residence; the risk of inaction is the default application of UAE succession rules.

A principal with assets in both the DIFC and onshore UAE, and a will registered only with the DIFC Wills Service Centre, should assess whether the existing instrument covers the onshore assets. If it does not, a supplementary instrument through UAE-admitted counsel is required. The risk of assuming coverage without verification is a partial-coverage gap that only becomes apparent at the time of probate.

A principal using a Hong Kong discretionary trust as the primary succession vehicle for offshore and Hong Kong assets needs to confirm that the UAE-sited assets are excluded from the trust structure and covered by a separate UAE instrument. Where UAE assets are improperly described as trust assets in a Hong Kong deed, the position in UAE court proceedings is uncertain. The risk is a failed succession argument at the most difficult moment.

A principal who has not yet taken UAE residence but is considering it should address the succession plan before the move, not after. UAE residence changes the domicile analysis and can change which succession rules apply as the default. The timing advantage of pre-residence planning is significant and is lost once the move is made without a plan in place.

Self-assessment checklist for the family principal

Before engaging counsel, a principal can use the following questions to identify the scope of the planning exercise:

Do you hold real property in the UAE in your personal name?
Do you hold an interest in a UAE entity – a mainland LLC, a free-zone company, or a DIFC entity – in your personal name or through a personal holding structure?
Have you registered a will with a UAE registry that specifically covers those assets?
Does your existing will address the governing law and jurisdiction for UAE-sited assets explicitly?
Has your UAE asset map changed since your existing will or estate plan was executed?
Is your domicile position clear and documented – particularly if you have moved residence in the last three to five years?
Do you hold assets through offshore entities, and are those entities covered by a succession instrument that is consistent with your UAE will?
Have you considered the interaction between your succession plan and any shareholder agreements, family charters, or buy-sell provisions in your business interests?

A "no" or "not sure" answer to any of these questions identifies a gap in the plan. The practical exposure from each gap varies, but the common thread is that gaps become visible at the worst possible time.

If an earlier will, registration attempt, or structure has already produced an uncertain result, a second read of the full document set can identify what remains open and what options exist to correct it. To discuss that analysis, contact us at info@lockhartyip.com.

Related practices

Private Wealth – succession, trusts, family office and residence structuring across borders
Holding Structures – offshore and Hong Kong holding entities for family and operating assets
Tax Positions – cross-border tax residence, FSIE and treaty analysis for relocating principals

Frequently asked questions

How long does a will and estate plan covering assets in the UAE usually take?

The timeline depends on the complexity of the asset map and the number of jurisdictions involved. For a principal with UAE assets and a Hong Kong or offshore holding structure, the planning and drafting phase ordinarily takes several weeks once the asset map and succession preferences are confirmed. UAE registry procedures add a further period that varies by registry and is subject to the applicable queue and documentation requirements. A plan covering multiple UAE registries and a Hong Kong trust instrument should be budgeted over a period of two to four months from instruction to full execution, though simpler structures can move faster. Parties should verify the current registration timelines with UAE-admitted counsel before relying on a specific estimate.

What are the main risks in a will and estate plan covering assets in the UAE?

The primary risk is the partial-coverage gap: a plan that covers some UAE assets but not others, leaving the uncovered assets to the UAE's default succession rules. The second risk is the unregistered will: a foreign will that has not been registered in the appropriate UAE registry and cannot be given effect to UAE-sited assets without a court recognition process. The third risk is structural inconsistency: two instruments claiming the same assets or a trust deed that describes UAE-sited property as a trust asset without a genuine transfer of legal ownership. Each of these risks materialises at the time of death, not during the principal's lifetime, which is why pre-mortem review is essential.

How does the cross-border element affect a will and estate plan covering assets in the UAE?

The cross-border element is the defining feature of this exercise, not a complication added to an otherwise domestic plan. A principal with assets in the UAE, Hong Kong, and an offshore centre is subject to three or more overlapping succession regimes simultaneously. Each regime applies to different categories of assets under different choice-of-law rules. The plan must address every interface: which instrument governs which assets, which court would administer which part of the estate, and how the instruments interact to produce the intended distribution without conflict. A single-jurisdiction plan drafted without cross-border co-ordination will almost certainly leave at least one interface unaddressed. See also our related analysis on succession planning across Hong Kong and the CIS and on private trust structures for family assets through Cyprus.

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