UAE Inheritance Rules for Expats: What Changed in 2026

A recent legal development has raised concerns about the fate of UAE assets when an expatriate dies without a will, and no legal heir can be identified. Changes to the UAE Civil Transactions Law, effective from June 2026, have brought fresh attention to the issue. Bank accounts, investments, personal belongings and real estate owned solely by the individual who has passed away could all be affected by these rules.The legal position is specific to the circumstances of each case. The outcome depends on the nature of the assets, the existence of a Will or identifiable heirs, and the legal rules that apply to the individual.Key takeawaysThe UAE Civil Transactions Law that took effect in June 2026 introduced new rules for foreign nationals with no legal heirs.Having no Will does not mean that an expatriate has no legal heirs.Article 17 allows certain Will terms to follow the law chosen in the document or the deceased person’s nationality.Full legal capacity under the new UAE Civil Transactions Law begins at age 18 instead of 21.The new UAE inheritance law and WaqfThe key change comes from the UAE’s new Civil Transactions Law, issued underFederal Decree-Law No. 25 of 2025. The law entered into force on 1 June 2026 and replaced the previous Civil Transactions Law issued under Federal Law No. 5 of 1985.Article 17 sets out the general rules for inheritance involving foreign nationals. Under Article 17(2), if a foreign national dies with financial assets in the UAE and no legal heir can be identified, those assets may become a charitable endowment, known as a Waqf, under the oversight of the relevant authority.That distinction is important. The rule applies when a foreign national has no legal heir. It does not mean that every expatriate who dies without a Will will have their UAE assets transferred to charity.The absence of a Will and the absence of heirs are two separate legal circumstances. A person may die without a Will and still leave behind a spouse, children, parents, siblings, or other legally recognised heirs. In such cases, succession rules and the legal framework applicable to the estate must still be considered.SituationWhat may happenExpat dies with a valid WillThe estate is dealt with under the applicable legal framework and the terms of the Will, subject to UAE law and court proceduresExpat dies without a Will but has identifiable heirsSuccession rules apply, with the applicable law depending on the circumstances and relevant legislationExpat dies without a Will, and no heir can be establishedArticle 17(2) of the new Civil Transactions Law may apply to financial rights located in the UAEA foreign national dies with no heirUAE-based financial rights are designated as a charitable endowment under the supervision of the relevant authorityA person with a spouse or children is not considered to have no heirs simply because they do not have a Will registered in the UAE.What does Article 17 say?Article 17 begins with a general rule. Succession is governed by the law of the country to which the individual belonged at the time of death, subject to the provisions within the Article. It then introduces the new provision concerning a foreigner with no heir.The law states:The main terms of a Will or another arrangement that takes effect after death may be governed by the law selected in the document or, where no law is selected, the law of the person's nationality.A foreigner's Will concerning immovable property located in the UAE is subject to UAE law.The final point deserves attention for property owners. ADubai apartment for saleheld in the person's name is an immovable asset located in the UAE, so UAE law has a direct role in the legal treatment of a Will dealing with that property.UAE inheritance rules before June 2026Under the previous version of Article 17 of the Civil Transactions Law, financial rights located in the UAE and belonging to a foreigner with no heirs were transferred to the relevant emirate. The new law now describes the destination as a charitable endowment, supervised by the relevant government body.Previous frameworkRules from 1 June 2026UAE-based financial rights belonging to a foreigner with no heirs were transferred to the relevant emirateUAE-based financial rights belonging to a foreigner with no heirs become a charitable endowment, or WaqfThe emirate became the statutory recipient under the previous ruleThe Waqf falls under the supervision of the competent authorityFederal Law No. 5 of 1985 appliedFederal Decree Law No. 25 of 2025 appliesHow is an estate handled when there are no heirs?An estate is not considered to have no heirs simply because family members live outside the UAE or do not come forward immediately.The process may require:Confirmation of the death.Identification and collection of UAE assets and liabilities.Examination of any Will or testamentary disposition.Identification of legally recognised heirs.Settlement of debts and obligations where applicable.Court or other...