When it comes to crypto assets, proper estate planning is critical due to their decentralized and digital nature. Crypto assets are not automatically included under general inheritance laws in the UAE. It’s essential to draft a will that outlines how these assets will be handled after death. In the absence of a will, inheritance is governed by Personal Status Law.
Muslim Inheritance
If a Muslim dies without a will, their estate, including crypto assets, is distributed according to Sharia law, which allocates specific shares to family members.
Even if a Muslim creates a will, only one-third of the estate can be freely distributed, while the remainder must comply with Sharia.
Non-Muslim Inheritance
If a non-Muslim dies without a will, UAE Personal Status Law may apply, but non-Muslims are often given the option to apply their home country’s inheritance laws.
Without clear instructions, it becomes complicated for beneficiaries to access and manage crypto assets.
Key Considerations:
Secure storage of private keys or detailed instructions on how to access crypto wallets is critical.
Consider appointing a digital executor – someone knowledgeable about handling crypto assets – who can ensure secure transfer.
Although estate planning for traditional assets is well-established, the regulatory framework for crypto inheritance is still evolving, requiring careful planning and monitoring of UAE laws for any updates that might affect inheritance matters.
Will Registration Options:
DIFC Wills Service Centre
For non-Muslims with the flexibility to distribute assets, including crypto, as desired.
Dubai Courts
Applicable to Muslims (subject to Sharia compliance) and non-Muslims.
Abu Dhabi Judicial Department
An option for Abu Dhabi residents for will registration, especially for non-Muslims.
Proactively planning for your crypto assets ensures that your digital wealth is safeguarded and easily accessible to your beneficiaries. As legal frameworks for estate planning evolve, taking steps now can help avoid complications and potential financial loss in the future.