Written by Parastu Aghai, Director · Last reviewed 23 September 2026
There is no single best tool for UAE-based international families — a will, a foundation and a trust each solve different problems, and most well-planned estates use more than one. A DIFC or ADGM Will provides certainty over UAE-based assets on death; a foundation offers a UAE-based, civil-law-compatible structure for holding and controlling assets during life; and a trust (typically set up offshore or under English law) remains the most flexible tool for multi-generational wealth transfer and asset protection. The right combination depends on where the family’s assets, beneficiaries and business interests actually sit.
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Why UAE Succession Planning Is Different
Succession planning in the UAE depends on a number of factors, including the individual’s religion, nationality, family circumstances, the nature and location of the assets, and the succession framework applicable to the estate.
For Muslim individuals, Sharia principles of inheritance are generally relevant to the distribution of the estate, subject to the applicable UAE legal framework. Succession planning for Muslim families therefore needs to be structured within those principles rather than on the assumption that they can be displaced by a will.
Separate testamentary arrangements are available for eligible non-Muslims. In Dubai, the DIFC Wills framework provides an established mechanism through which qualifying non-Muslims can document their succession wishes in relation to eligible assets. In Abu Dhabi, ADGM Courts also provides a non-Muslim wills service for eligible individuals who own assets in the UAE.
The appropriate succession-planning route therefore depends on the individual’s personal status and circumstances, as well as the location and legal ownership of the assets concerned. Early planning can help ensure that testamentary documents, ownership structures and estate arrangements operate consistently with the applicable UAE succession framework..
DIFC and ADGM Wills: What They Actually Cover
A DIFC or ADGM Will may cover assets located in the UAE and, depending on how it is drafted, assets situated outside the UAE. This can include real estate, bank accounts, business interests, investments and other personal property. Appropriate wills may also address the appointment of guardians for minor children in accordance with the applicable UAE framework.
Including foreign assets in a UAE Will does not, however, mean that the Will can necessarily be administered abroad without further steps. The succession, probate and recognition requirements of the jurisdiction in which the foreign asset is located will still need to be considered. For that reason, individuals with assets in several countries may choose either a suitably drafted worldwide Will or separate jurisdiction-specific Wills.
Where multiple Wills are used — for example, a UAE Will dealing with UAE assets and an English Will dealing with UK assets — they should be carefully coordinated so that each Will identifies its intended territorial scope and does not inadvertently revoke or conflict with the other.
Foundations: A UAE-Based Alternative to a Trust
A DIFC or ADGM Foundation is a separate legal entity with its own legal personality. Unlike a company, it does not have shareholders, and its assets are held by the Foundation itself and administered in accordance with its constitutional documents and stated objects.
Foundations can be used as part of family wealth, succession and asset-holding structures. A Founder may establish the Foundation for the benefit of specified persons or classes of beneficiaries, or for other permitted purposes, while its Foundation Council is responsible for administering the Foundation and its assets in accordance with the applicable law, Charter and By-laws. Depending on the structure, a Guardian may also have an oversight role.
This can provide a framework for long-term ownership and governance of family assets, continuity following the death or incapacity of a Founder, and controlled distributions to beneficiaries. The suitability of a Foundation, including its succession, asset-protection and governance consequences, depends on the family’s objectives, the nature and location of the assets and the applicable legal and regulatory framework.
Foundations for Holding Business Interests
Foundations are increasingly used to hold shares in an operating family business, separating legal ownership (held by the foundation) from beneficial enjoyment (held by family members), while a council manages the foundation according to a charter the founder sets during their lifetime. This structure can help avoid a forced sale or fragmentation of the business on the founder’s death.
Building a Coordinated Structure
For UAE-based international families, succession planning often requires coordination across more than one legal system. Depending on the family’s circumstances, the structure may include a DIFC or ADGM Will covering specified assets, a foundation or trust for the long-term ownership and governance of significant family, business or investment assets, and separate wills or succession arrangements in other jurisdictions where appropriate.
There is no single structure that is suitable for every family. The appropriate approach depends on factors such as the individual’s religion and personal status, the location and nature of the assets, existing ownership structures, tax considerations and the succession laws of each relevant jurisdiction.
Where more than one will, foundation, trust or other succession-planning instrument is used, the documents should be drafted and reviewed together so that their scope, governing law, revocation provisions and succession arrangements are consistent. Poorly coordinated documents can create overlapping or conflicting provisions and complicate the administration of the estate.
Frequently Asked Questions / Questions & Answers
Do I need a will if I live in Dubai or Abu Dhabi?
Yes. Without a registered DIFC or ADGM Will, UAE-based assets may be distributed according to default UAE succession rules rather than the family’s actual wishes, which can produce unexpected outcomes, particularly for blended families or where beneficiaries are outside the UAE.
Does a DIFC Will cover assets held outside the UAE?
Yes, it can. A DIFC or ADGM Will may be drafted to cover assets located outside the UAE as well as assets within the UAE, depending on its terms and the type of Will used.
However, including foreign assets in the Will does not remove the need to consider the succession, probate and recognition requirements of the jurisdiction where those assets are located. A foreign court or authority may need to recognise or give effect to the Will before the assets can be administered or transferred.
For individuals with assets in several jurisdictions, the appropriate approach may therefore be either a suitably drafted worldwide Will or separate, coordinated wills for different jurisdictions. Where multiple wills are used, they should be carefully drafted so that their territorial scope and revocation provisions do not conflict..
Is a foundation better than a trust for a UAE family?
Neither a foundation nor a trust is inherently the better structure. Each has different legal characteristics and may be suited to different succession, governance and wealth-planning objectives.
A foundation is a separate legal person that owns its assets in its own name and is governed through its constitutional documents and Foundation Council. This can make it particularly useful where a family wants a defined governance framework for the long-term ownership and administration of family, business or investment assets.
A trust operates differently: legal title to the trust assets is held by the trustee, who must administer those assets in accordance with the terms of the trust and applicable fiduciary duties for the benefit of the beneficiaries or permitted purposes.
The appropriate choice depends on factors including the nature and location of the assets, the family’s governance and succession objectives, the degree of control or oversight required, the location of beneficiaries, tax considerations and how the structure will be recognised in other relevant jurisdictions.
Can a foundation hold shares in a family business?
Yes. This is one of the most common uses of DIFC and ADGM Foundations — separating legal ownership from beneficial enjoyment while a council manages the foundation according to rules the founder sets during their lifetime, helping to avoid forced sale or fragmentation on death.
What happens if I die in the UAE without a will?
Without a valid registered will, UAE-based assets may be distributed under default succession rules, which can differ significantly from the deceased’s actual wishes and may not reflect the needs of a surviving spouse, unmarried partner or children from a previous relationship.
Can I appoint guardians for my children in a UAE will?
Yes. DIFC and ADGM guardianship wills allow parents resident in the UAE to formally appoint guardians for minor children, providing certainty that would not otherwise exist under default rules.
Speak to Saracens Dubai
Saracens’ Dubai Estate Planning & Wills team advises international families on DIFC and ADGM Wills, foundations and coordinated cross-border succession structures for assets, businesses and beneficiaries in the UAE and abroad.
Visit our Estate Planning & Wills page, call our team on +971 (0) 4 319 7928, or email info.uae@saracenssolicitors.ae to arrange a consultation.
