Sponsored
Learn how estate division laws in Dubai work. Get expert legal help to secure your share—read our guide and consult a Dubai lawyer today.
Ever wondered how estate division laws in Dubai determine who inherits what? From delivering estate property to managing debts and handling business assets, it’s important to understand the key legal concepts governing who gets what. This blog breaks down everything, ensuring you’re well-prepared, whether you’re an heir, executor, or trustee navigating Dubai’s estate division rules.
Step 1: Settling Debts Before Distribution
Before anything else, the estate must settle its debts and obligations. After these liabilities are paid off, the remaining estate goes to the heirs. Each heir receives their rightful share based on inheritance rules. This is the first and most crucial step in the entire process.
Step 2: Transferring Estate Property to Heirs
Once the estate is clear of debts, the estate trustee (responsible for managing the estate) must deliver the remaining property to the heirs. Here’s how this works:
Full Delivery: The estate trustee transfers all of the estate’s property to the heirs.
Early Requests: If some assets aren’t needed to settle debts, heirs can request early delivery of certain property. Sometimes, they may need to offer guarantees before receiving the assets.
This ensures that heirs gain access to their rightful shares promptly and transparently, even before the estate is fully liquidated.
Step 3: Asking for Your Share
Each heir can formally ask the trustee for their specific estate portion. This means:
Sorting Shares: Heirs have the right to request that their share be separated from the rest of the estate and handed over to them.
However, under estate division laws in Dubai, there may be situations where the heirs must maintain shared ownership of some assets, especially when legal provisions or agreements require it, such as in cases involving a family business.
Step 4: Dividing the Estate Before All Debts Are Paid
The estate can be divided among the heirs even before all debts are settled. Here’s how that works:
Debt Allocation: A portion of the estate is set aside expressly to cover the remaining debts, including those secured by property.
Amicable Division: The trustee can divide the estate if all heirs agree. However, the division is not final until every heir approves.
Legal Intervention: If the heirs can’t agree on dividing the estate, the trustee may need to go to court to request a legal division. Any legal costs associated with this process will be deducted from the heirs’ shares.
This step ensures that debts don’t delay the division process unnecessarily while still protecting the interests of creditors.
Step 5: Special Rules for Businesses in the Estate
Special rules apply if the estate includes a business—whether it’s agricultural, industrial, or commercial. Here’s how business assets are handled:
Assigning the Business: If the heirs can’t agree on what to do with the business, it is given to the heir who is most capable of running it. The value of the business is deducted from that heir’s share of the estate.
Bidding for the Business: If two or more heirs are equally capable, the business is awarded to the heir who offers the highest price, provided that price is at least equal to the market value of a similar business.
This ensures that valuable business assets are managed effectively and fairly.
Step 6: Handling Debts in the Division Process
Suppose one heir takes on the responsibility of paying off a debt from the estate. In that case, the other heirs are not automatically liable if that heir later defaults (e.g., due to bankruptcy). This protects the other heirs unless they’ve agreed to share responsibility for the debt.
Step 7: Testator’s Will and Estate Division
When the deceased (testator) leaves behind a will that divides their estate, this division is usually respected by law. Here are some key points:
Testamentary Division: If the testator outlined a division of the estate in their will, this division is generally binding unless it is found to be unfair or in conflict with legal provisions.
Conclusion
By understanding estate division laws in Dubai, you can confidently manage or participate in the division of an estate. Ensuring that everything is handled according to the law and in the best interest of all parties involved. If you’re facing the challenge of dividing an estate, consulting with a top Dubai lawyer or legal consultant can provide valuable guidance.
© 2024 Crivva - Business Promotion. All rights reserved.