Inheritance Power of Attorney in the UAE

An Inheritance POA is a specific type of Power of Attorney that grants a designated agent the legal authority to act on your behalf solely in matters related to an inheritance. This agent is also known as an authorized person. This can include managing inherited assets, accessing funds, dealing with legal proceedings, or distributing legacies.

In the UAE, where diverse nationalities reside and the legal framework blends civil and Sharia law principles, an Inheritance POA is particularly essential. It provides clarity and efficiency, especially for:

• Non-residents: If you inherit assets in the UAE but live abroad, you don’t need to be here for every step. An Inheritance POA lets a local representative handle the process on your behalf.
• Future Planning: Even if you are a resident, unforeseen circumstances can arise. Having an Inheritance POA in place ensures that your inheritance can be managed effectively if you become incapacitated or are simply unavailable.
• Complex Estates: For estates involving various types of assets (property, bank accounts, shares), an agent can expertly navigate the different administrative and legal requirements.
• Minimizing Delays: Without a POA, claiming an inheritance takes longer. Beneficiaries may need court orders. They might also have to travel to the UAE more than once.

It’s important to know that a regular POA becomes invalid after a person passes away. That’s why an Inheritance POA is usually drafted on behalf of the heirs after their parents’ death. The only exception is if the deceased had already issued an administrative POA while alive, specifically to manage future inheritance-related matters.

Unlike a general Personal POA, which deals with day-to-day matters, the Inheritance POA is strictly for handling a deceased person’s estate.

An Inheritance Power of Attorney is helpful for anyone who wants to plan and make sure their assets are managed smoothly. It’s especially useful for:

1. Expatriates with UAE Assets: If you’re a foreigner with assets in the UAE, a POA allows someone to manage them in your absence or after your death. Without a registered Will, Sharia-based inheritance laws may apply to Muslims.
2. Beneficiaries Outside the UAE: If you’re set to inherit assets from the UAE but live abroad, a local agent can act on your behalf, saving you travel, time, and legal hassle.
3. Elderly or Those with Health Concerns: A POA ensures your estate is managed according to your wishes, reducing stress for loved ones during hard times.
4. Business Owners: If your inheritance includes company shares or partnerships, a POA ensures smooth business continuity without disruptions.
5. UAE Residents with Overseas Heirs: If your heirs live abroad, a POA helps a trusted person locally manage everything without them having to be here.
6. Guardians of Minor Heirs: For families with children who might inherit, a POA ensures a responsible adult can manage the estate until the child comes of age.

To draft and legalize an Inheritance Power of Attorney in the UAE, you will typically need to provide the following documents and information:

1. Grantor's (Principal's) Identification:

   • Original Passport and Visa copy (if applicable)
   • Emirates ID (if applicable)
   • Proof of Address (e.g., utility bill)
   • Passport-sized photograph (may be requested by some notary offices)

2. Agent's (Attorney-in-Fact's) Identification:

   • Original Passport and Visa copy (if applicable)
   • Emirates ID (if applicable)
   • Full Name, Nationality, and Contact Details

3. Details of the Inheritance:

   • Specific details of the assets to be managed (e.g., property deeds, bank account numbers, share certificates, details of the deceased's estate)
   • Information about the deceased, including their death certificate (if the POA is being drafted post-demise to manage an already existing inheritance claim)
   • Any relevant court orders or probate documents (if available)

4. Specific Powers to be Granted:

   • A clear list of the actions the agent is authorized to perform (e.g., accessing bank accounts, selling property, signing documents, representing in court, managing inherited funds, settling debts). The more specific, the better to avoid future disputes.
   • The more specific the list, the better, to avoid any future disputes or confusion

5. Language Requirements:

   • If your documents are not in Arabic, certified legal translation will be required. Safe Ledger can assist with this crucial step.

Securing an Inheritance Power of Attorney in the UAE involves a clear, multi-step process to ensure its legal validity and acceptance by all relevant authorities.

Step 1: Consultation and Drafting

• Initial Discussion: Start by consulting a licensed legal provider (registered with DED or a free zone). Discuss your needs, assets involved, and powers to be granted.
• Drafting the POA: Our legal experts will draft the Inheritance POA to meet UAE legal standards, with clear clauses and defined powers for handling inherited assets. The draft will be prepared in Arabic and/or English, depending on your preference and the final notarization requirements.

Step 2: Review and Approval

• You need to review the draft POA carefully to ensure all details are accurate and that it reflects your exact intentions regarding the inheritance.
• Any necessary amendments will be made at this stage.

Step 3: Notarization

• Court Notary Public: For an Inheritance POA to be legally binding in the UAE, it must be signed in front of a Public Notary at the Dubai Courts (e.g., Abu Dhabi Judicial Department, Sharjah Notary Public) or other relevant emirate courts.
• Identity Verification: Both the grantor and the agent (or their legal representative if acting on their behalf) must be present with their original identification documents. The Notary Public will verify identities and witness the signing.
• Arabic Translation (if applicable): If the POA is primarily in English, an official Arabic translation will be required for notarization and official use.

Note: If the agent can’t be present, you may need to issue a separate Power of Attorney or provide a legalized authorization for someone else to act on their behalf.

Step 4: Ministry of Foreign Affairs (MOFA) Attestation (for international use)

• If your Inheritance POA is intended to be used outside the UAE, or if it is for managing assets or heirs from outside the UAE, it may require attestation by the UAE Ministry of Foreign Affairs and potentially your home country's embassy/consulate in the UAE. SafeLedger can guide you through this process.

Step 5: Delivery

• Once notarized and attested (if required), you will receive the original, legally valid Inheritance Power of Attorney.

Ready to Secure Your Inheritance POA?

Let Safe Ledger FZCO handle the legal drafting, notarization, and attestation, so you can protect your assets and heirs without the hassle. Get started with a free consultation today!

The cost of an Inheritance Power of Attorney in the UAE varies based on complexity, number of powers, and urgency. Here's a general breakdown:

Note: These figures only cover official fees. Service provider charges (e.g., for drafting, translation, courier services) are not included and may vary.

An Inheritance POA is usually valid for a set time or until a specific task is completed, unless marked as irrevocable.

• Defined Period: Many POAs are issued for a fixed term (e.g., one year, five years).
• Specific Task Completion: An Inheritance POA can be drafted to remain valid only until a particular inheritance matter is resolved (e.g., the transfer of a specific property or the distribution of inherited funds).
• Grantor's Incapacitation/Death: A regular POA ends when the grantor dies. An Inheritance POA is different; it’s usually made by the legal heirs after someone passes away. It lets an agent handle tasks like asset division, property transfer, or court representation on their behalf.
• Revocation: The grantor can revoke the POA at any time, as long as they are of sound mind. However, this must be done through a formally notarized revocation document signed at a Notary Public to ensure it is legally recognized.

Note: In the UAE, inheritance is primarily regulated by Federal Decree-Law No. 41 of 2022 on Civil Personal Status. This law provides flexibility for non-Muslim residents, allowing them to apply the laws of their home country to inheritance matters—but only if clearly stated in a registered Will. For Muslim residents, inheritance typically follows Sharia law, unless they've formally chosen an alternative legal route through recognized legal mechanisms.

Renewal of Inheritance Power of Attorney

If your Inheritance Power of Attorney was issued for a specific validity period, and the inheritance matters are still unresolved by the expiration date, then renewal will be necessary.

The renewal process is essentially similar to drafting a new POA, involving:

• Review of Original POA: Checking the terms and powers granted in the expired document.
• Client Consultation: Confirming that the grantor still wishes to grant the same powers to the same agent.
• Drafting New POA: A new document will typically be drafted, reiterating or updating the powers.
• Notarization: The new POA must be signed and notarized again by a Public Notary.
• Attestation (if needed): If the POA is for international use, re-attestation by MOFA may be required.

It is advisable to initiate the renewal process well in advance of the expiration date to avoid any disruption in the management of the inherited assets or funds.

A well-drafted Inheritance Power of Attorney should contain specific clauses to ensure it is effective and legally robust. These include:

• Grantor & Agent Details: Full legal name, nationality, passport number, Emirates ID (if applicable), and current address for both parties.
• Date of Execution: The date the POA is signed and notarized.
• Specific Powers Granted: This is the most critical section. It must explicitly list all actions the agent is authorized to perform related to the inheritance. Examples include:
  • Accessing and managing the bank accounts of the deceased.
  • Selling, leasing, or managing inherited real estate.
  • Collecting debts or receiving inherited funds.
  • Representing the grantor in courts or government departments regarding inheritance disputes.
  • Signing legal documents related to inheritance.
  • Dealing with probate procedures.
  • Paying taxes or other liabilities related to the inheritance.
  • Appointing sub-agents if necessary.
• Duration/Validity: Whether the POA is for a fixed term or a specific purpose.
• Revocation Clause: A statement affirming the grantor's right to revoke the POA.
• Governing Law: Stating that the POA is governed by the laws of the UAE.
• Signatures: Signatures of the grantor, agent (acknowledging acceptance), witnesses, and the Notary Public.
• Language: Clearly stating the language in which the POA is drafted and if an official translation exists.

A grantor can revoke or cancel an Inheritance Power of Attorney at any time, provided they are of sound mind and capable of making such a decision. The process typically involves:

1. Drafting a Revocation Document: A formal legal document stating the clear intention to revoke the previously issued Inheritance POA.
2. Notarization of Revocation: This document must also be signed in front of a Public Notary, similar to how the original POA was notarized.
3. Notification of the Agent: It is crucial to formally notify the appointed agent (attorney-in-fact) of the revocation. This should ideally be done in writing, with proof of delivery.
4. Notification of Relevant Parties: If the POA has been used with banks, government departments, or other institutions, it is highly recommended to inform these parties of the revocation to prevent the agent from continuing to act on your behalf.
5. Retrieving Original POA: If possible, retrieve all original copies of the revoked Power of Attorney from the agent and any third parties.

Contact Safe Ledger today to discuss your Inheritance Power of Attorney needs and secure your future with confidence.