This article explores the crucial differences between a Will and a Power of Attorney (POA) in the UAE, highlighting why both are essential for expatriates. A Will governs asset distribution and guardianship after death, while a POA enables someone to manage your affairs during your lifetime. Through real case examples, the article explains how each document functions and why a POA cannot replace a Will, especially in a jurisdiction like the UAE where, in the absence of a registered Will, Shariah law will apply by default. The article serves as a practical guide to help expats plan effectively and legally protect their future.
When it comes to securing your future and protecting your loved ones, two legal tools stand out, the Will and the Power of Attorney (POA). While both are crucial documents for expatriates and investors living in the UAE, they serve very different purposes. Unfortunately, many people confuse the two, or worse, assume one can replace the other. This article breaks down what each document means, how it works in the UAE, and why having both is essential for comprehensive legal protection.
This blog is a part of our How to Register a Will in UAE: Requirements and Procedures blogpost.
What is a Will?
A Will is a legal document that takes effect after a person’s death. It allows you to:
- Specify how your UAE based assets (property, bank accounts, company shares, etc.) should be distributed.
- Appoint an executor who will be responsible for managing and distributing your estate to your loved ones.
- Nominate guardians for your minor children, ensuring they are cared for by someone you trust.
Without a registered Will, the distribution of your assets in the UAE will be governed by Shariah law, even if you are a non-Muslim expat. This could result in outcomes that are very different from what you would have intended.
- For example, if you own an apartment in Al Reem Island and wish to leave it to your spouse and children, a registered Will ensures your wishes are honoured. Your executor will use the Will to obtain a probate order, after which the court will allow the distribution of assets as per your instructions.
Real Case Example
A British expat passed away unexpectedly in Abu Dhabi, leaving behind a spouse and two minor children. Although he had a POA in place for his wife to manage their joint assets, he had not registered a Will in the UAE. As a result, the estate defaulted to Shariah principles. His wife faced delays and challenges accessing bank accounts and was unable to sell their property without a lengthy court process. Had there been a registered ADJD Will in place, the assets could have been distributed in accordance with his wishes within a shorter legal timeframe.
What is a Power of Attorney (POA)?
A POA is a legal document that allows you to appoint another person (known as the “attorney” or “agent”) to act on your behalf while you are alive. A POA can be broad (general) or narrow (limited) depending on your requirements.
It is particularly useful if:
- You travel frequently or live abroad.
- You want someone to manage your business, real estate, or finances.
- You need someone to handle legal matters on your behalf.
For example, if you own a company and need your manager to operate it in your absence, a POA will legally empower them to handle tasks like opening bank accounts, signing contracts, managing employees, or dealing with government departments.
Real Case Example
A Canadian business owner based in Dubai frequently travelled for work and had issued a general POA to his business partner. When he fell seriously ill overseas, his business partner used the POA to manage company affairs and handle urgent financial obligations, including paying staff and renewing trade licenses. The POA ensured business continuity during a period when the principal was incapacitated, without the need for court intervention.
Key Differences Between a Will and a Power of Attorney
| Feature | Will | Power of Attorney |
|---|---|---|
| When it takes effect | After death | While you’re alive |
| Purpose | Asset distribution and guardianship | Managing property, finances, and legal affairs |
| Expires | Upon death | Can be cancelled any time, ends at death |
| Can appoint | Executors and guardians | Legal representatives (attorneys/agents) |
| Used for | Probate, inheritance, family protection | Real estate, business, banking, legal tasks |
| Legal requirements in UAE | Required to opt out of Shariah law | Useful but not a substitute for a Will |
Can a POA Replace a Will in the UAE?
Absolutely not. This is a common misunderstanding.
A POA ceases to be valid upon the death of the person who issued it. So even if you’ve appointed someone to manage your affairs under a POA, that authority ends immediately upon your passing. After that point, only a registered Will can dictate how your estate should be managed or distributed.
This is especially critical in the UAE, where, in the absence of a registered Will, the default position is that Shariah inheritance principles apply, regardless of your nationality or religion (unless you are a UAE or GCC national).
Why Expats in the UAE Should Have Both a Will and a POA?
- To Ensure Proper Asset Distribution – A Will ensure your assets go to the people you choose.
- To Appoint Guardians for Children – Without a registered Will, there may be uncertainty or delay in guardianship decisions.
- To Manage Day-to-Day Affairs – A POA gives trusted individuals the ability to handle your business and financial matters if you are unavailable, hospitalised, or living abroad.
- To Avoid Court Delays and Family Stress – Having both documents in place streamlines decision making during critical times.
Final Thoughts
Wills and Powers of Attorney are not interchangeable. A POA cannot transfer property after death, and a Will cannot authorise someone to act on your behalf while you’re alive. Both serve distinct and essential functions.
If you are an expat in the UAE, the safest approach is to put in place a registered Will to protect your family and assets after death, and a Power of Attorney to ensure someone can act for you during your lifetime.
At ATB Legal, we assist clients across the UAE in drafting, registering, and executing Wills and POAs that reflect their wishes and comply with local laws. Get in touch with us today to take the next step in protecting what matters most.
