UAE Law and Practice Contributed by: Ildar Yuvakaev, Ruslan Akhmetov, Olga Serova and Daiana Ubushaeva, Consigliere Group
through the DIFC/ADGM, where courts and precedent are established. A family waqf under Federal Law No 5 of 2018 offers a Sharia-native alternative, side - stepping the one-third cap for Muslim heirs. A bare bequest instead lands in court-supervised guardian - ship, so wills typically pour assets into the foundation rather than bequeath outright, further funded by life insurance written in trust for lifelong care; and bank guardianship accounts for minors remain custody arrangements, not true planning vehicles. A key Mus - lim-specific constraint is that a disabled heir still takes their forced-heirship share outright at majority, so only lifetime transfers into a waqf or foundation can impose managed, protected provision beyond the one-third discretionary portion. Court guardianship remains the restrictive default for anything left unplanned. 8.2 Appointment of a Guardian The appointment of a tutor, trustee or similar repre - sentative for a minor’s property or for an adult lack - ing capacity generally involves the personal-status or estate court and continuing judicial supervision. For minor children, however, the father, and then the paternal grandfather, is generally the guardian by operation of law. A father may nominate a tutor for a minor, and the court may appoint the mother or another suitable person where there is no auto - matic guardian, a dispute arises, or a guardian must be replaced. For an adult who is legally incapacitated, prodigal or of impaired judgment, the court appoints the appropriate trustee. The representative must preserve the protected per - son’s assets, provide periodic accounts and obtain court permission for specified transactions, particu - larly disposals, conflicts of interest and other material acts. The court may review the administration and remove or replace the representative. Personal cus - tody of a child should be distinguished from authority to manage the child’s property, as the two roles may
tion. It should therefore not be the sole incapacity- planning tool. If capacity is lost, the family may need to apply to a court for an interdiction order and the appointment of a guardian or trustee. Bank accounts and assets may be frozen until the order is issued, and major transac - tions usually require court approval. The Mental Health Law improved procedural protections but did not cre - ate a UAE equivalent of a lasting power of attorney. Planning should be layered while the client has capac - ity. It may include limited operational powers of attor - ney, alternate bank and company signatories, suc - cessor directors, alternate signatories or replacement foundation council members, clearly defined reserved powers, liquidity arrangements, an asset and liabilities record, and documented medical preferences, where accepted by the relevant provider. Foreign durable powers may remain useful for foreign assets, but their recognition and practical acceptance in the UAE should be checked in advance. For significant UAE assets, a DIFC, ADGM or RAK ICC foundation may help preserve continuity because the foundation, rath - er than the incapacitated individual, owns the assets. 8.4 Elder Law The UAE approach to longer-life planning differs for UAE nationals and expatriates. For UAE nationals, fed - eral legislation protects senior Emiratis’ independence in property, financial affairs, residence and healthcare decisions. Pension reform under Federal Decree-Law No 57 of 2023 also aims to support General Pension and Social Security Authority (GPSSA) sustainability for new entrants through higher contributions and longer service requirements. For expatriates, retirement and long-term care depend more on private arrangements. End-of-service gratuity remains important, but employers may opt into the alternative Savings Scheme, where contributions are invested in approved funds; the DIFC Employee Work - place Savings (DEWS) plan provides a similar funded model. Financial-literacy initiatives and private sav - ings products, including employer or pension-style savings plans, are also becoming more relevant.
be held by different persons. 8.3 Planning for Incapacity
An ordinary UAE power of attorney is not a lasting power of attorney: under the Civil Transactions Law, agency terminates on the principal’s death or loss of legal capacity, subject to a narrow statutory excep -
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