Financial Assets Will: Preserving Wealth with Legal Clarity in the UAE

Overview

A Financial Assets Will is crucial for expatriates and residents in the UAE with significant financial holdings in banks and brokerage accounts. This legal document ensures that your financial assets are managed and distributed according to your wishes, in compliance with DIFC regulations. Recognized financial assets that can be included in such a will are specifically movable assets, as defined under DIFC law.

These include:

• • Monies: This category encompasses cash deposits held in bank accounts.
  • Privately Owned Shares: Held in privately held companies, which are also recognized as movable assets under DIFC regulations.
  • Publicly Traded Shares: Includes shares that are listed on stock exchanges and held within brokerage accounts.
  • Stock or Other Securities: Covers a variety of equity instruments, such as preferred stocks, that are publicly traded.
  • Securities Issued by Any Government Authority: This refers to government bonds or other securities issued by government entities that are tradable on regulated markets.
  • Government bonds or other government-issued securities that are readily tradable.

1. Financial Assets Details
   • Question: What financial accounts do you hold in banks and brokerage firms within the UAE?
   • Guidance: To form the foundation for managing and distributing your financial assets, list all your bank and brokerage accounts. Specify the institutions where these accounts are held, the type of accounts (such as savings, checking, or investment), and their current status. A will may include up to ten (10) separate accounts or a share in up to ten (10) separate accounts. Ensure that these accounts are registered in your sole name or joint name, and that they are legally held with a bank or brokerage firm located in the UAE. This detailed inventory is crucial for ensuring that your assets are managed and distributed according to your wishes, in compliance with DIFC regulations.
2. Distribution Plan
   • Question: How do you wish to distribute the assets in these accounts among your beneficiaries? Are there any specific conditions attached to the distribution?
   • Guidance: Outline a clear distribution plan for your financial assets. Under DIFC law, non-Muslims can specify asset distribution. It’s important to detail your wishes, including any conditions or stipulations you want to apply to the distribution, ensuring all conditions are enforceable under UAE law.
3. Joint Accounts
   • Question: If you have assets in joint accounts, what are your instructions regarding your share of these accounts?
   • Guidance: Specify your intentions for any jointly held financial assets. You may choose to transfer your share to the surviving account holder or distribute it among other beneficiaries. The choice should align with your overall estate strategy and comply with the legal framework provided by the DIFC.
4. Financial Obligations
   • Question: Are there any ongoing financial obligations related to these accounts, such as loans or securities held as collateral?
   • Guidance: Detail any obligations and how they should be handled upon your passing. This includes addressing liabilities and ensuring that your estate plan provides clear instructions to prevent financial burdens on your beneficiaries.
5. Regulatory Compliance
   • Question: Do your financial accounts comply with the regulations of the Central Bank of the United Arab Emirates and the Emirates Securities and Commodities Authority?
   • Guidance: Confirm that all accounts adhere to regulatory standards, which is essential for the execution of your will. This includes verifying that each account is correctly registered and holds only the movable assets as defined by DIFC regulations.