The UAE is home to a growing community of American expats, executives, entrepreneurs, finance professionals, and families who have relocated to Dubai for the opportunities it offers. For Americans, UAE estate planning comes with an additional layer of complexity: the interaction between UAE inheritance law and US estate tax rules.
Does UAE Inheritance Law Apply to Americans?
Yes. UAE inheritance law applies to all assets physically located in the UAE, bank accounts, property, vehicles, investments, and gratuity. Your US nationality does not exempt you. For non-Muslim Americans, the UAE defaults to Sharia inheritance distribution in the absence of a registered UAE will.
Does Your US Will Cover UAE Assets?
A US will, whether a Last Will and Testament from any US state, is not automatically enforceable in UAE courts. Enforcing a US will in the UAE would require an authentication, legalisation, and judicial recognition process that is lengthy, expensive, and uncertain.
The standard approach for Americans with UAE assets is to maintain both: a US will for US-based assets, and a UAE will for UAE-based assets. The two should reference each other explicitly and be drafted to avoid unintended revocation clauses.
Many US wills contain a clause revoking all prior wills. If your US attorney drafts a new will after you register your UAE will, this clause could inadvertently revoke your UAE will. Ensure any US will explicitly excludes wills governing non-US assets.
US Estate Tax and UAE Assets
Americans are subject to US estate tax on their worldwide assets, regardless of where they live. The UAE does not impose inheritance tax or estate tax of its own, but your UAE assets (property, accounts, investments) count toward your US estate tax exposure.
The current US federal estate tax exemption is high (over USD 12 million per individual as of 2025), so most expats will not face federal estate tax liability. However, this exemption is scheduled to revert significantly after 2025 unless Congress acts. Americans with significant UAE assets should review this with a US tax advisor.
FBAR and FATCA, UAE Accounts
Americans with UAE bank accounts or investments above certain thresholds must report them on FBAR (FinCEN Form 114) and FATCA Form 8938. These reporting obligations are separate from estate planning but are relevant when your executor needs to account for UAE assets to US authorities.
Including your UAE accounts in your will, or at minimum, ensuring your executor knows they exist, is essential to avoid assets being overlooked during estate administration.
What Happens Without a UAE Will for Americans
- UAE accounts frozen immediately upon death
- Sharia distribution rules apply, spouse may receive only 1/8 of the estate
- US-based executor or family members cannot access UAE assets without UAE court proceedings
- Probate in UAE courts takes 12–18 months and requires UAE legal representation
- US estate tax administration is complicated by the inaccessibility of UAE assets
Registering a UAE Will as an American
Americans can register a UAE will through OwnX's ADJD service entirely remotely, no travel to the UAE required. The video verification call with the ADJD court can be conducted from anywhere in the world, including from the US.
- Complete the online questionnaire (15–25 minutes)
- OwnX prepares English draft and certified Arabic translation
- Sign the bilingual will electronically in your OwnX account
- ADJD court video verification call, done from your US home or office
- Will registered, typically the next working day
American expat or non-resident with UAE assets? Register your UAE will from AED 749, entirely remotely, no UAE visit required.
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Aanchal Adhikari (Advocate, LL.B., LL.M. (Cand.))
Senior Specialist & UAE Estate Planning Advocate
Aanchal Adhikari is a Nepal-licensed Advocate with 4+ years of legal practice, specialized in ADJD Wills, DIFC wills, and UAE inheritance. She has drafted and overseen 800+ ADJD Wills in the UAE and is currently pursuing an LL.M. at Middlesex University Dubai.
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