UAE Law and Practice Contributed by: Yann Mrazek, Kath Zagatti, Hermione Harrison and Keerthi Voodimudi, M/HQ Corporate Services Ltd
and the legal recognition of family relationships under UAE law. The UAE does not recognise same-sex marriages or civil partnerships. As a result, same-sex spouses or non-marital partners do not have automatic inherit- ance rights under UAE law. In the absence of a valid will providing otherwise, such individuals would not be treated as statutory heirs under the Sharia-based inheritance regime applicable to Muslims. For non- Muslims governed by Federal Decree-Law No 41 of 2022 on Civil Personal Status, as amended, testamen - tary freedom allows assets to be left to a partner by will; however, if no valid will is in place, no automatic spousal entitlement arises. Children born within a legally recognised marriage are entitled to inheritance rights in accordance with the applicable succession regime. The position of chil- dren born out of wedlock may be more complex, as inheritance rights are generally linked to legally estab- lished parentage under the relevant personal status framework. Adoption, as understood in many civil law jurisdic- tions, is not recognised in the traditional Western sense under Sharia principles. While guardianship arrangements may exist, adopted children do not automatically acquire inheritance rights as biological heirs under the Sharia-based regime. Testamentary planning is therefore commonly used to provide for such individuals, subject to applicable limitations (including, for Muslim testators, the one-third testa- mentary disposition rule unless statutory heirs con- sent otherwise). Surrogacy arrangements are not recognised under UAE law and are prohibited domestically. As a result, succession rights in relation to surrogate or posthu- mously conceived children depend on the legal rec- ognition of parentage under the applicable personal status law. In practice, cross-border arrangements may give rise to complex questions of recognition and enforceability. The UAE does not impose inheritance tax, estate tax or wealth tax. Accordingly, succession planning for
non-traditional families is primarily a question of legal recognition and entitlement rather than tax exposure. 11.2 Conflicts and Divergent Laws Conflicts may arise where family relationships are val- idly recognised under foreign law but are not recog- nised, or are treated differently, under UAE law. This may occur in cases involving same-sex spouses, civil partners, adopted children or children born through surrogacy arrangements. Where a person dies intestate, succession will be determined in accordance with the applicable per- sonal status framework and relevant conflict-of-law principles. In cross-border estates, UAE courts may apply the law of the deceased’s nationality in certain circumstances, particularly for non-Muslims, sub- ject in all cases to UAE public order and mandatory personal status principles. However, recognition of status-based rights remains subject to UAE public order considerations and mandatory provisions of local law. Accordingly, even if a relationship is rec- ognised abroad, statutory inheritance rights may not be enforceable locally if the underlying status is not recognised under UAE law. Such conflicts are typically mitigated through proac- tive lifetime structuring and carefully drafted testa- mentary arrangements. The use of foundations, trusts and properly registered wills can reduce uncertainty by clearly defining beneficiaries and succession inten- tions. In practice, succession planning for internation- ally connected families requires co-ordinated advice across relevant jurisdictions to ensure alignment between personal status recognition, asset location and intended inheritance outcomes. 12. Cross-Border Succession Planning 12.1 Taxation of Cross-Border Estates and Transfers Natural Person The UAE does not impose estate/inheritance/gift taxes on individuals, and there is no UAE personal income tax. A natural person is only subject to UAE
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