Table of Contents
- What Happens to Unpaid Salary After Death?
- Are Bank Accounts Frozen After Death?
- How Do You Claim the Money?
- Practical Tips for Expats
- Final Thoughts
Why a WILL in UAE Is Key to Managing Salary, Gratuity & Assets After Death
In the UAE, where many expats live and work far from their families, the thought of what happens to one’s hard-earned money after death is often left unspoken. But it’s a critical conversation—especially if you have dependents or assets here.
Your salary, gratuity, life insurance, and bank funds don’t automatically pass on to your loved ones.
The truth is: Without a registered WILL in the UAE, your assets may be delayed, disputed, or even distributed in ways you never intended.
This blog explains why having a WILL in the UAE is not just a legal formality—but an act of responsibility for your family’s financial future.
What Happens Without a Will in the UAE?
When a resident passes away in the UAE without a WILL, their estate—this includes bank balances, final salary, gratuity, and personal assets—is governed by local laws, which may apply Shariah inheritance rules by default, especially if the deceased is Muslim.
Even for non-Muslims, in the absence of a registered WILL, local courts will determine inheritance based on UAE law or refer to the law of the deceased’s home country, depending on the judge’s discretion.
The process is time-consuming, requires court paperwork, translation of documents, and can leave families with no access to funds for months.
Why Having a WILL Makes All the Difference
Having a registered WILL in the UAE helps you:
◘ Name your beneficiaries (spouse, children, parents, others)
◘ Specify how your salary, gratuity, and savings should be distributed
◘ Appoint guardians for minor children
◘ Avoid Shariah-based default distribution (if you’re a non-Muslim)
◘ Speed up the probate process significantly
○ Key Insight: A WILL registered with DIFC Courts (Dubai) or Abu Dhabi Judicial Department (ADJD) for non-Muslims gives clarity and legal authority for how assets should be handled.
What Happens Without a Will in the UAE?
When an employee passes away in the UAE, any unpaid salary—including salary up to the date of death, unclaimed bonuses, and unused leave—is not automatically released to the family.
Instead, this money becomes part of the deceased’s estate. To access it, the family must obtain a Succession Certificate or court order issued by a UAE court.
🔹 Key Point: Employers cannot pay these dues to anyone without legal documentation, even if they know the deceased’s family personally.
End-of-Service Gratuity: Who Gets It?
The end-of-service gratuity is a lump-sum payment every private-sector employee is entitled to after completing one year of service in the UAE.
If an employee dies, their gratuity is still calculated and becomes part of the estate. But, like unpaid salary, this money cannot be distributed without a legal directive from the court.
Formula (Simplified):
‣ 21 days’ basic salary per year for the first 5 years
‣ 30 days’ salary per year after 5 years
‣ Max limit: 2 years’ total salary
🔹 Important: Gratuity is not automatically given to the nominee (if one exists). It must follow either the Will or inheritance laws applicable to the deceased.
What About Life Insurance Payouts?
Here’s some good news: If your employer provides life insurance and you’ve nominated a beneficiary, that money goes directly to the nominee upon your death.
Unlike salary and gratuity, life insurance proceeds do not require a court order. All the insurance company needs is:
✔ A valid death certificate
✔ Policy details
✔ ID proof of the nominee
🔹 Important Tip: Always ensure your nominee details are up to date with HR. If no nominee is listed, the payout may become part of the estate—causing delays.
Are Bank Accounts Frozen After Death?
Yes. In the UAE, a deceased person’s bank accounts are automatically frozen once the bank is notified of the death—whether it’s a salary account, savings account, or joint account.
Even joint accounts can get frozen until a Succession Certificate is presented. This can make it difficult for spouses or dependents to access urgently needed funds.
What Can Be Done?
- Families should contact the bank and file for a succession certificate from the court.
- Some banks may release limited funds for funeral expenses, but policies vary.
What’s Covered Under a WILL?
Your WILL can cover all assets held in the UAE, such as:
| Asset Type | Can Be Covered in a WILL? |
|---|---|
| Unpaid Salary | ✅ Yes |
| End-of-Service Gratuity | ✅ Yes |
| Life Insurance Benefits | ✅ Yes (if not nominated) |
| Bank Account Funds | ✅ Yes |
| Real Estate & Vehicles | ✅ Yes |
| Personal Belongings | ✅ Yes |
Let’s Break It Down: Without vs. With a WILL
| Scenario | Without a Will | With a Registered Will |
|---|---|---|
| Final Salary & Gratuity | Frozen until succession order | Paid out as per WILL |
| Bank Accounts | Immediately frozen; access takes months | Released faster via probate process |
| Distribution | Shariah law (default) or court’s discretion | As per your instructions |
| Guardianship of Children | Appointed by court | You choose the guardian |
| Processing Time | Months to years | Weeks to months |
| Legal Costs & Stress | High | Controlled and predictable |
How Do You Claim the Money?
Step-by-Step Process for Families:
Report the Death
‣ Obtain a death certificate (from the UAE health authority)
‣ Notify the employer and bank
File for a Succession Certificate
‣ Apply through UAE courts
‣ Present documents like the death certificate, passport copies, and proof of relationship
Wait for Legal Approval
The court will decide how the estate is to be distributed based on:
‣ A valid Will (if available), or
‣ Shariah inheritance law (for Muslims), or
‣ The deceased’s home country’s law (for non-Muslims, if opted)
Receive Disbursement
‣ Employer releases salary and gratuity
‣ Insurance company transfers the payout
Bank processes estate distribution per the court order
Summary Table
Asset Type | Requires Court Order? | Who Receives It? |
Unpaid Salary | ✅ Yes | Legal heirs via succession process |
End-of-Service Gratuity | ✅ Yes | Legal heirs via succession process |
Life Insurance | ❌ No | Nominee directly |
Bank Account Funds | ✅ Yes | Legal heirs via succession process |
Practical Tips for Expats
✔ Make a Will in the UAE
A registered Will can help ensure your estate is distributed as per your wishes and can simplify the court process.
✔ Nominate Beneficiaries for Insurance
Always check with your HR or insurance provider that your nominee details are accurate and up to date.
✔ Maintain Documentation
Keep copies of your salary slips, employment contract, and insurance policies in a safe place your family knows about.
✔ Speak to a Legal Expert
Different nationalities and religions may have different laws applied in the UAE courts. A local legal expert can guide your family through the correct process.
Where & How to Register Your WILL in the UAE
If you’re a non-Muslim expat, you can register your WILL in the UAE through:
◙ DIFC Wills Service (Dubai)
English common law framework
Online registration available
Covers assets across all Emirates
◙ Abu Dhabi Judicial Department (ADJD)
Offers bilingual wills (Arabic & English)
Recognized across UAE courts
Can cover both assets and guardianship
Ready to Register Your WILL in the UAE?
We can help.
► Expert Will Drafting
► DIFC / ADJD Registration Support
► Asset & Estate Planning Consultation
► End-to-End Legal Filing
📩 Contact us today for a confidential consultation.
Final Thoughts
Creating a WILL may feel like an uncomfortable conversation. But it’s one of the most powerful financial and emotional protections you can offer your loved ones.
You’ve worked hard to build a life in the UAE—don’t leave your family with legal uncertainty. Secure their future with a clearly drafted and registered WILL.
Planning for the unexpected isn’t easy—but it’s necessary. In the UAE, the rules around posthumous salary, gratuity, and bank accounts are designed to ensure fairness, but they require legal steps and documentation.
By understanding these rules and planning ahead—through a Will and updated nominations—you can give your family peace of mind during difficult times.
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