1. Bank Accounts Freeze Instantaneously
All UAE bank accounts—single or joint—are frozen automatically once the bank is informed of the death of the account holder.
UAE law does not recognize “right of survivorship.” Thus, even joint accounts must have court-provided succession papers prior to the release of any funds.
Practical advice posted on expat forums: it makes sense to have separate sole accounts (such as spouse-owned) for quick access to emergency funds.
2. Salary & End-of-Service Gratuity Form Part of the Estate
Unpaid salary and end-of-service gratuity are assessed as estate assets and cannot be disbursed by employers until a UAE court makes an Order of Succession.
Employers are required to pay these sums (final salary, leave accrued, gratuity, bonuses) within a specified time after notice of death.
3. Life Insurance vs Estate
Payouts of life insurance are outside the estate, so they can go directly to nominated beneficiaries without going to court.
4. Who Gets It Under UAE Law?
With a valid, UAE-registered Will (or properly apostilled foreign Will): estate as per that Will.
Without a registered Will (intestate):
Non-Muslims – from Feb 1, 2023: spouse gets 50%, rest of the estate divided equally between the children.
Muslims – Sharia law applies for distribution: e.g., spouse gets 1/8 (if deceased has children); sons get double the share of daughters.
Key Points for UAE Residents:
No automatic inheritance of joint bank funds—everything is frozen until heirs are legally confirmed.
Ensure that your UAE Will is registered (e.g., through DIFC, ADJD, or local court) so your desires are honored.
Appoint a spouse as a life insurance beneficiary to make payments fluid.
Have a sole bank account for your spouse to prevent financial problems if calamity befalls.
Realize that gratuity and unpaid salary remain tied up until succession proceedings are completed.
Spouses and heirs won’t automatically inherit your bank money or salary/gratuity. It all hinges on sound legal planning, said Wills, beneficiary appointments, and the court-authorized succession process. Wise planning today can spare your loved ones trouble and delay tomorrow.
