UAE Law and Practice Contributed by: Yann Mrazek, Kath Zagatti, Hermione Harrison and Keerthi Voodimudi, M/HQ Corporate Services Ltd
email and social media accounts) and digital assets with economic value, including cryptocurrency and tokenised assets. Digital accounts are primarily governed by contrac- tual terms with service providers, which frequently treat accounts as personal and non-transferable. UAE cybercrime legislation criminalises unauthorised access to electronic systems, and the federal personal data protection regime imposes restrictions on the disclosure of account content. Accordingly, although such assets may form part of a deceased’s estate in principle, lawful control and access may be con- strained by contractual and regulatory considerations. Cryptocurrency and other virtual assets raise addi- tional regulatory considerations. Within the DIFC, the Digital Assets Law (DIFC Law No 2 of 2024) provides a clearer property-law framework for certain digital assets. The ADGM similarly operates a common law based regime governing digital asset activities within its jurisdiction. Outside the financial free zones, virtual asset activities in Dubai are regulated by the Virtual Assets Regulatory Authority (VARA). Where digital assets are self-custodied, effective control ultimately depends on possession of private keys or recovery credentials, making practical access a central issue in succession. 7.2 Planning Considerations Traditional testamentary provisions alone are often insufficient to ensure effective control or transfer of digital assets. Proactive and structured planning is therefore essential. Individuals should maintain a clear and regularly updat- ed inventory of digital assets, distinguishing between custodial holdings (such as exchange accounts with regulated trading platforms), self-custodied crypto- currency, and non-financial digital accounts. The legal and practical considerations differ materially across these categories. Estate planning documentation should expressly address digital assets and confer appropriate author- ity on executors or fiduciaries. Sensitive access infor- mation, however, should not be embedded directly in testamentary documents, but managed through
secure and controlled mechanisms that balance con- fidentiality and recoverability. Where cryptocurrency is held with regulated interme- diaries, planners should consider the documentation and compliance procedures that may be required upon death. For self-custodied assets, technical suc- cession planning may be critical to prevent permanent loss. Unlike certain US states that have enacted legisla- tion such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which establishes a structured statutory regime governing fiduciary access to digital accounts and digital assets, the UAE – including the DIFC and ADGM – does not provide an equivalent dedicated fiduciary-access statute. While the DIFC Digital Assets Law recognises succession- based entitlement to digital assets, access following death remains largely dependent on platform terms, regulatory compliance and properly conferred legal authority. In practice, effective digital asset succession planning in the UAE requires co-ordinated legal and technical measures to ensure that both entitlement and prac- tical control are achieved in a lawful and workable manner. Family business succession planning in the UAE is primarily focused on preserving control, ensuring operational continuity and preventing fragmentation of ownership across generations. Structured transition mechanisms are generally preferred over the outright division of business assets. Succession is typically managed through the phased transfer or restructuring of shares in holding compa- nies under which operating assets are consolidated, rather than through the transfer of underlying assets themselves. This approach preserves contractual rela- tionships and operational stability while reducing the 8. Family Business Succession Planning 8.1 Succession Strategies
197 CHAMBERS.COM
Powered by FlippingBook