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Inheritance Settlement Agreement for United Arab Emirates

Inheritance Settlement Agreement Template for United Arab Emirates

An Inheritance Settlement Agreement under UAE law is a comprehensive legal document that formalizes the distribution of a deceased person's estate among their heirs and beneficiaries. The agreement must comply with UAE Federal Law No. 28 of 2005 (Personal Status Law) and, where applicable, Sharia law principles. For non-Muslim expatriates, it may incorporate provisions from their home country laws as permitted under UAE Federal Law No. 5 of 1985. The document details the agreed distribution of assets, implementation procedures, and obligations of all parties, while ensuring compliance with both federal and emirate-specific regulations regarding asset transfer and registration.

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What is a Inheritance Settlement Agreement?

The Inheritance Settlement Agreement is a crucial document used in the United Arab Emirates to formalize and document the distribution of inherited assets following a person's death. It is particularly important given the UAE's unique legal framework that combines civil law with Sharia principles for Muslims, while allowing non-Muslim expatriates to apply their home country's inheritance laws. This agreement becomes necessary when heirs need to formally document their agreed distribution of assets, especially in cases involving substantial estates, business interests, or real estate. The document must comply with UAE Federal Law No. 28 of 2005 and other relevant regulations, while potentially incorporating international elements for expatriate estates. It serves as a binding legal document that prevents future disputes and facilitates the smooth transfer of assets to rightful heirs.

What sections should be included in a Inheritance Settlement Agreement?

1. Parties: Identification of all heirs, beneficiaries, and executors involved in the settlement

2. Background: Details of the deceased, date of death, and basis for inheritance rights

3. Definitions: Key terms used throughout the agreement including asset categories, relevant laws, and technical terms

4. Acknowledgment of Rights: Recognition of each party's inheritance rights under applicable law

5. Asset Distribution: Agreed distribution of assets among heirs and beneficiaries

6. Settlement Terms: Specific terms and conditions of the settlement arrangement

7. Implementation: Procedures and timeframes for executing the settlement

8. Tax and Costs: Allocation of taxes, fees, and costs associated with the settlement

9. Representations and Warranties: Parties' confirmations regarding their rights and authority

10. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction over the agreement

11. Execution: Signature requirements and execution formalities

What sections are optional to include in a Inheritance Settlement Agreement?

1. Foreign Assets: Required when inheritance includes assets located outside the UAE

2. Business Interests: Required when inherited assets include business ownership or shares

3. Property Management: Required when ongoing management of inherited properties is needed

4. Minor Beneficiaries: Required when heirs include minors requiring guardianship arrangements

5. Dispute Resolution: Optional detailed dispute resolution procedures beyond court jurisdiction

6. Religious Requirements: Required for Muslim heirs to ensure Sharia compliance

7. Deferred Payments: Required when settlement includes installment payments or future distributions

8. Power of Attorney: Required when any party needs representation for implementation

What schedules should be included in a Inheritance Settlement Agreement?

1. Schedule 1 - Asset Inventory: Detailed listing of all assets forming part of the inheritance

2. Schedule 2 - Valuation Report: Professional valuations of significant assets

3. Schedule 3 - Distribution Calculation: Detailed calculation of shares and distributions

4. Schedule 4 - Implementation Timeline: Timeline for various actions required under the agreement

5. Schedule 5 - Required Documents: List of documents required for asset transfer

6. Appendix A - Death Certificate: Certified copy of the death certificate

7. Appendix B - Legal Heir Certificate: Official documentation of legal heirs

8. Appendix C - Power of Attorney: Any powers of attorney relevant to the settlement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Cost

Free to use
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Relevant Industries

Legal Services

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Private Banking

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Professional Services

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Estate Administration

Property Administration

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Legal Counsel

Estate Manager

Wealth Manager

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Family Office Director

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