UAE Law and Practice Contributed by: Ildar Yuvakaev, Ruslan Akhmetov, Olga Serova and Daiana Ubushaeva, Consigliere Group
3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities In the UAE, cross-border tax and estate planning for HNWIs commonly relies on DIFC and ADGM trusts and foundations, together with Ras Al Khaimah Inter - national Corporate Centre (RAK ICC) foundations, SPVs and holding companies. DIFC and ADGM foundations are the leading private wealth vehicles, offering legal personality, succession control, founder powers and asset-holding flexibility. RAK ICC foundations provide a more cost-effective alternative. Trusts remain relevant, particularly for common-law families, with DIFC and ADGM trusts available, although offshore trusts (Jersey, Guernsey and BVI) are still widely used for international assets. Waqf structures (Islamic endowments) remain impor - tant for Muslim families seeking a Sharia-based suc - cession and philanthropic vehicle. Supporting struc - tures include SPVs, family offices, registered wills and Family Companies Law arrangements. As the UAE has no personal income, gift, estate or capital gains tax, these structures are primarily used for succession planning, asset protection, govern - ance and incapacity planning. Key limitations include onshore enforcement risks, uncertainty around Sharia- based heirship challenges, creditor claw-back rules, sham risks from excessive founder control, foreign tax treatment issues and governance costs. Recent reforms, including the corporate tax frame - work, family foundation transparency rules, Dubai Law No 2 of 2025 and wider succession reforms, have strengthened the UAE planning environment, although significant areas remain untested. The market continues to shift towards UAE-based foundations, family offices and multi-generational structures, driven by HNWI migration and succession needs, while disputes involving these structures are expected to increase.
Wills remain an important tool for expatriate families to ensure certainty over the distribution of UAE-situs assets and reduce succession disputes. 2.7 Transfer of Assets: Digital Assets The regulation of digital assets in the UAE is fragment - ed across federal legislation and free zone-specific frameworks. The UAE succession rules may apply to digital assets, regardless of whether the owner is a UAE national, resident or foreign investor. In the mainland, virtual assets are regulated primarily by the Securities and Commodities Authority (SCA). Separate regulatory frameworks apply within the financial free zones, including the Financial Services Regulatory Authority (FSRA) in the ADGM and the Dubai Financial Services Authority (DFSA) in the DIFC. In Dubai outside the DIFC, virtual asset activities are regulated by the Virtual Assets Regulatory Authority (VARA). While neither the mainland UAE nor ADGM currently provides a dedicated succession regime for digital assets, the DIFC courts launched a digi - tal assets will, allowing individuals to choose benefi - ciaries for certain digital assets through a dedicated non-custodial wallet structure. The owner retains full control over the assets during their lifetime, with the assets passing to the chosen beneficiaries upon death in accordance with the registered will and DIFC pro - bate procedures. As part of the DIFC’s digital succession framework, its courts also offer tejouri , a secure digital vault for storing documents, records and other legacy informa - tion. Unlike the digital assets will, the tejouri does not hold cryptocurrencies, NFTs or other digital assets. Instead, it may be used to store supporting estate planning documents and records, while digital assets remain under the owner’s control through the non- custodial wallet structure used by the DIFC digital assets will framework. No specific succession regime exists for digi - tal accounts and online services. Access to email accounts, cloud storage platforms and social media profiles is generally governed by the contractual terms of the relevant service provider.
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