New UAE Civil Law 2026: What Happens to Heirless Expat Assets?

Under the landmark Federal Decree-Law No. 51 of 2024, which came into full effect on 1 January 2026, the United Arab Emirates has overhauled its Civil Law. For the expatriate community, the most significant change is the introduction of a formal “Waqf” rule for unclaimed estates. If an expatriate passes away in the UAE without a valid will and leaves no identifiable legal heirs, their UAE-based financial assets and property are no longer held in a permanent freeze. Instead, they are now legally designated as a charitable endowment (Waqf).

The New Legal Framework: Decree-Law No. 51 of 2024

The UAE Civil Law 2026 update marks a transition from the old 1985 code to a modern, transparent system. While previous laws often left unclaimed assets in a “legal limbo,” the new regulations ensure these funds serve the public interest. Key provisions include:

• Asset Transfer to Waqf: Financial assets, real estate, and business shares belonging to a foreigner with no heirs are transferred to a supervised charitable endowment.
• Lowering the Age of Majority: The age of legal capacity has been reduced from 21 to 18 Gregorian years.
• Youth Entrepreneurship: Minors as young as 15 years old can now petition the court to manage inherited assets under judicial supervision.

Why Every Expat Needs a Will Under the New Civil Law in 2026

With the 2026 legal shift, proper legal drafting of a will is no longer a luxury—it is the only way to bypass statutory default rules. Without a will registered at the DIFC Wills Service Centre or the UAE Courts, your estate is subject to the following:

1. Mandatory Asset Freeze: Banks are legally obligated to freeze all accounts immediately upon notification of death.
2. Statutory Distribution: For non-Muslims, the law now follows a default 50/50 split between a surviving spouse and children (with gender-neutral inheritance shares).
3. Waqf Finality: Once a court confirms there are no legal heirs and no registered will, the transfer to the Waqf is often final and extremely difficult to reverse.

How 2S Lawyers Protects Your Legacy

As specialized legal consultants in Sharjah, the team at Dr. Saqr Al Marzouqi Advocates (2S Lawyers) provides comprehensive protection against these new risks. Our approach includes:

• Will Registration: We handle the end-to-end process for DIFC and Notary Public wills to ensure your assets stay within your family.
• Corporate Succession Planning: We update your business structures to prevent the forced liquidation of corporate entities upon a shareholder’s passing.
• Asset Protection Audits: A thorough review of your UAE holdings to identify “heirless” risks before they become a legal reality.

Expert Insight: The 2026 Civil Transactions Law aims for judicial clarity. However, it also means that your silence is interpreted as consent to the state’s default distribution rules.” — Legal Team at 2S Lawyers.

الأسئلة الشائعة

1. Does my foreign will work in the UAE under the 2026 law?

While UAE courts have become more flexible, enforcing a foreign will involves costly translations, attestations, and potential conflict-of-law issues. It is highly advised to register a local UAE will to ensure immediate asset release.

2. What happens to my business shares if I have no heirs?

Under the updated Corporate and Civil Laws, shares in a single-person company or a partnership could be transferred to the Waqf or liquidated if no succession plan or will is documented.

3. Can my family claim my assets after they are moved to the Waqf?

Proving kinship after a judicial order has been issued is a complex litigation process. Prevention through legal consultation is significantly more cost-effective.

4. Does the 18-year-old majority rule apply to guardianship?

Yes. As of 2026, guardianship generally terminates at age 18. This means your children will receive their full inheritance at 18 unless your will specifies a later age (such as 21 or 25) through a trust-like structure.

Secure Your Family’s Future Today

Don’t leave your hard-earned assets to chance or the default rules of the 2026 updates. 2S Lawyers offers specialized expertise in UAE succession law and estate planning. Contact us today for a virtual legal consultation to draft or update your UAE Will.