Aiming at boosting the growth of the wealth management sector and providing an innovative mechanism for business continuity and legacy planning, the UAE recently promulgated an
Onshore Trust law (Decree Law no. 19 of 2020)
What
Although trusts exist locally in both the DIFC and ADGM, it is the first time that the UAE recognizes the common law trust concept within its civil law jurisdiction.
For Whom
The law introduces an asset protection and legacy planning tool for local families who may not want to rely on foreign or DIFC/ADGM trusts to structure local and foreign assets. The Trust Law applies to any type of asset irrespective of its geo-location.
Key Features
Registration – Under the new Law a condition of validity of the arrangement is the registration of the trust deed. The trust deed is recorded electronically with a specific registrar, reflecting the assets – whether movable or property – settled onto the trust.
Local Courts – While the DIFC and ADGM trust laws are administered by each free zone’s respective common law courts, any matter pertaining to the UAE trust law are to be administered by domestic, Arabic speaking, civil law courts.