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Frequently Asked Questions
DIFC Wills – What is the DIFC Wills and Probate Registry?
The Registry, a public entity of the Dubai Government, is an ancillary body of DIFC’s Dispute Resolution Authority (DRA) established by Resolution No. 4 of 2014 issued by HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the President of the DIFC.
The DIFC Wills and Probate Registry, a public body, is not in the position to give any legal advice or assist you in the drafting of your Will. An individual wishing to register a Will with us should have their drafted and unsigned Will ready for registration at their appointment.
An individual may draft their own Will, however, we highly recommend you use the services of a licensed legal practitioner when drafting your Will. The DIFC Wills and Probate Registry is not in the position to give legal advice or assist you in drafting your Will.
A trust is an obvious means of providing for a mentally disabled beneficiary. If a beneficiary is mentally disabled he cannot give a valid receipt for an outright gift made to him by a donor in his lifetime, or by a Will, and if assets are given outright to the beneficiary the property gifted will have to be administered by a receiver under the control of the Court of Protection. This can lead to unnecessary bureaucracy
Even if the beneficiary can give a receipt for the assets, it may not be advisable to pay them outright to him, since they may upset the beneficiary’s rights to means-tested benefits. Some parents are tempted not to make provision for their disable children in their Wills for this reason, but if a parent fails to provide for a disabled child in his Will, so that the child is dependent on the state benefits, the child can make a claim under section 2 of the Inheritance (Provision for Family and Dependants) Act 1975.
Although it is perfectly possible to create a life interest trust for a disabled relative, the absolute right to the income will upset that beneficiary’s claim to means-tested benefits. Consequently, a discretionary trust for the disabled should be considered
A trust for the disabled is a creature of statute and is a discretionary settlement which meets the requirements laid down by section 89 of the Inheritance Tax Act 1984. To qualify as a trust for the disabled, the trust must have a disabled person as one of the beneficiaries. During the life of that person, no interest in possession must in fact subsist in the capital of the trust, but not less than half the trust fund which is paid during the disabled person’s lifetime must be applied for his or her benefit.
The section defines a disabled person as being a person who, when the property was transferred to the trust, is either:
a). Incapable by reason of mental disorder within the meaning of the Mental Health Act 1983, of administering his property or managing his affairs; or
b). Is in receipt of an attendance allowance under section 64 of the Social Security Contributions and Benefits Act 1992 or disability living allowance under section 71 of the same Act by virtue of entitlement to the care component at the highest middle rate.
Effects of Trust Payments
If a disabled adult child lives in a local authority accommodation, or is sponsored by a local authority in another form of accommodation, the local authority is obliged to recover the whole of the cost of accommodation from the resident, or that part which they assess the resident is able to pay.
If the disabled person has an absolute title to capital or income for whole or part of the trust these payments will affect the entitlement to support payments.
If the trust makes discretionary payments to the disabled person these are treated as voluntary payments and are only taken into account when they are made.
