A trust is a legal arrangement that allows a person (the trust founder) to transfer some of his assets to another person (the trustee) who will manage them for the benefit of a third person (the beneficiary) or for a specific purpose. Trusts can be used for various reasons, such as wealth preservation, succession planning, asset protection, tax planning, and confidentiality.
Trusts are governed by the Federal Decree-Law No. 31/2023 Concerning Trust (the Decree-Law) in the UAE. This article will explain the main requirements and procedures for creating a trust in the UAE, as well as the contents of the trust deed, which is the document that establishes the trust.
A trust can be defined as the legal person established pursuant to the Trust Deed in accordance with the provisions of the Decree-Law to achieve the Purpose of the Trust.
The trust deed is the document that creates the trust and sets out its terms and conditions.
The trust deed must meet the following requirements:
Once the competent authority approves the trust deed and issues a certificate of validity and enforcement for the trust, the trust deed will be registered and valid for everyone. Only a court can declare the trust invalid based on Article (39) of the Decree-Law.
The trust deed and any related document can be in Arabic or any other language, but they must have a certified legal translation in Arabic. If there is any conflict, the language of the original trust deed will be followed.
Read more about: Drafting Wills and Trust Agreements
The trust deed must include the following information:
If any of the above information is missing, except for the term of the trust, the trust deed will be invalid.
The trust deed may also include the following information:
All you need to know about DIFC Trust
Trust Assets are any movable or immovable assets owned by the Trust, including any interests associated therewith or considered part thereof, and any existing or future right, inside or outside the UAE. Trust Assets shall include the Benefits of the Trust as determined by the Trust Deed.
The trust founder can transfer any type of assets to the trust, such as money, property, shares, or intellectual property rights. However, the assets must meet the following conditions:
The term of the trust is the period during which the trust exists and operates. The term of the trust can be decided by the following methods:
You may want to know: How Trust is beneficial for your property in the UAE?
HHS Lawyer is a leading law firm in Dubai that offers comprehensive and professional trust services in the UAE. Whether you want to set up a trust in Dubai, protect your assets, plan your estate, or transfer your wealth to the next generation, HHS Lawyer can help you achieve your goals.
Trusts are one of the oldest and most effective ways to safeguard your possessions and ensure your privacy and confidentiality. However, trusts are subject to legal and regulatory requirements in the UAE, and you need expert guidance to navigate them. HHS Lawyers in Dubai has the experience, knowledge, and skills to assist you with all aspects of trust formation, administration, and management in the UAE.
If you are looking for a reliable and reputable trust service provider in the UAE, contact HHS Lawyer today. Our team of qualified and dedicated lawyers will provide you with personalized and tailored solutions that suit your needs and preferences. Don’t miss this opportunity to secure your future and legacy with HHS Lawyer.
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