For Couples with Kids, Making a Will is a Question of “When,” Not “If”

When a married person with children dies intestate—a situation where there is no will in place—one might assume the estate automatically passes on to the surviving spouse and eventually the kids. Historically, this has been the case in most societies. But today, legislation is increasingly replacing tradition, leading to unintended consequences for families. Despite this, complacency still keeps many from making a will.

A notable example is the estate of the late Emirati businessman Majid Al Futtaim. Estimated to be worth over $6 billion, his estate is now a point of contention between ten family members, including three wives, one son, and six daughters. Anticipating a problem, Dubai's Ruler Sheikh Mohammed has appointed a special judicial committee to resolve the matter.

Understanding UAE Laws on Intestacy

The UAE’s Law No. 41 of 2022 on Civil Personal Status states that when a non-Muslim dies without a will, assets are distributed equally between the surviving spouse and children. For Muslims, asset distribution follows Shariah law. This means that if you wish to ensure the asset distribution is handled according to your wishes, creating a will is essential.

A Will Can Define Guardianship

When a parent dies, the surviving spouse typically gets custody of the children. However, if both parents die without a will, custody and estate matters can become litigated, especially if the children are minors. Couples with kids of any age can prepare for such scenarios by nominating a guardian in their will. The will should also include how the estate should be used for the children’s upbringing and welfare. While guardianship preferences in the will may not always be legally binding, they can influence the court's decision. This is particularly crucial for blended families with children from previous marriages.

Averting Family Fallouts

Courts often see civil cases emerge from intestacy, especially when a patriarch or matriarch passes away without a will. Heirs might argue over the estate, leading to potential conflicts. Parents can prevent this by clearly distributing their assets in a will. Even if a beneficiary disagrees with their inheritance, a will protects the other heirs from liability and avoids lengthy legal battles.

A Will Allows for Equitable—Not Equal—Inheritance

If one of the heirs, whether a child or adult, has a disability that affects their opportunities compared to the others, a will can ensure their special needs are addressed. Parents can allocate additional resources for the child’s care. This kind of planning can also extend to pets, ensuring they are cared for by a designated heir, with appropriate compensation outlined in the will. Leaving such decisions to the legal system can result in unwanted outcomes.

Leaving a Legacy

For some, leaving a legacy means more than just passing on assets to children. A will can earmark funds for a social cause, charity, or set up a trust, ensuring that their positive impact on society endures beyond their lifetime. Executors can be appointed to oversee these interests.

Couples can also designate an executor to manage their digital assets, such as social media accounts, cloud services, and domain servers, upon their passing. The executor can also handle funeral responsibilities, using earmarked funds from the will. Investment portfolios, life insurance, and other valuable assets can be smoothly passed to heirs through a well-prepared will. While a basic will only requires notarization, more complex wills—particularly those involving tax implications—warrant professional advice from financial advisors.

Creating a will is not just about distributing assets; it’s about providing peace of mind, safeguarding the future of your family, and leaving behind a meaningful legacy. To learn more about the benefits of making a will, drop a mail at info@cfsgroup.com.