In a landmark UAE civil law update in 2026, effective Jan 1, 2026, the UAE has clarified what happens to foreign residents’ estates if they die without a will or any legal heirs. Under the new rule, financial assets of an expat with no heirs will be designated as a charitable endowment (Waqf) managed by a competent authority. This move resolves years of uncertainty and prevents estates from remaining “in legal limbo”, ensuring any leftover expat funds serve the public interest
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Key Highlights of the 2026 Update:
- Applies only when an expatriate dies intestate (with no valid will) and has no legal heirs.
- All financial assets of such a foreigner in the UAE become a designated charitable endowment (Waqf).
- The endowment will be managed by a competent authority to ensure transparent, proper allocation of funds.
- The change underscores the importance of writing a valid will, as expats without wills now risk default allocation under these rules.
According to a UAE Government Media Office statement,
“financial assets located within the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment.”
“The Law further provides that financial assets located within the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment, subject to supervision by the competent authority to ensure proper management and allocation.”
This guarantees that estates are handled transparently and in the public interest. The rule “provides clarity and finality, ensuring assets are dealt with lawfully and responsibly,” underscoring why every resident should document their heirs.
What happens if an expat dies intestate in the UAE?
Previously, expats who died intestate often left estates in limbo. Now, when a foreigner dies without a will or heirs, UAE authorities will transfer their UAE-based assets into the new endowment. Banks, landlords, and investors will have clear guidance to resolve these cases. In practical terms, a legacy
“won’t just sit in a frozen bank account indefinitely. Instead, it will be designated as a charitable endowment (Waqf).”
means the expatriate’s estate supports community causes rather than remaining inaccessible.
For most expats, the lesson is clear: keep an updated will. A formal will (registered via DIFC, ADJD, or Dubai Courts) acts like a “Fast Pass”, letting your family avoid lengthy default procedures. Otherwise, dying intestate under the new rules means your UAE assets go to charity by default, not to unnamed distant heirs.
Minors Can Now Manage Assets at 15
There was another interesting nugget in the announcement that parents of teenagers might want to pay attention to. The law is trying to catch up with the rise of young entrepreneurs.
While you’re still legally an adult at 18 Gregorian years, the courts can now authorise kids as young as 15 to manage their own trade and money. It’s a huge shift from the old system and gives young heirs or business whiz-kids a legal way to handle their own affairs without waiting until they’re legal adults.
Why this matters to the UAE
The reform reduces uncertainty for UAE banks, developers, and heirs. According to reports, the change “reduces uncertainty around dormant or disputed assets” and provides a clear pathway for resolution. It also aligns with the UAE’s broader legal modernization. Officials say this charity provision is part of a continuing effort to modernise the legal framework and balance legal certainty with social responsibility.
In summary, the UAE inheritance law for expats now clearly addresses heirless estates. These updates, part of a “continuous national trajectory focused on modernising the legal framework”, make the UAE an even more predictable home for its global workforce. UAE residents and investors are advised to update or create wills so their wishes are clear under the updated Civil Transactions Law.
