In previous articles, we discussed, on the one hand, the importance and relevance of having a will in the United Arab Emirates, and, on the other hand, the role of DIFC and RAK foundations in wealth structuring.
Today, we examine why combining a will with a foundation often constitutes the most effective strategy for succession planning in the UAE.
1. The Primary and Central Role of the Will
As previously mentioned, a will allows the testator to designate the law governing their estate, avoid the automatic application of local succession rules, and, of course, organise the distribution of their assets.
In the United Arab Emirates, a well‑drafted will enables the testator to retain full ownership and control of their assets during their lifetime while anticipating their distribution upon death. It is revocable.
However, a will alone has certain limitations: it only takes effect upon death, may be challenged, and does not always ensure a structured management of assets after transmission.
2. The Foundation as a Tool for Continuity
This is where the foundation comes into play.
In our previous article, we outlined the main features of foundations. Generally speaking, a foundation allows assets to be placed within an independent structure, with long‑term rules governing their management and distribution. Its purpose is to protect the estate from succession‑related or family‑related risks. In many ways, the founder can shape the long‑term direction of the foundation.
In practical terms, the founder may rely on several essential, complementary, and flexible options:
- retain ownership of the assets during their lifetime,
- provide in their will that certain assets will be transferred to the foundation upon death,
- or transfer certain assets to the foundation during their lifetime while maintaining indirect control.
3. A Thoughtful Interaction Between Will and Foundation
Combining both tools allows for a high degree of legal sophistication:
- the will organises the transfer of assets to the foundation upon death;
- the foundation, through its charter and tailored by‑laws, then ensures asset protection, management, and distribution to beneficiaries under specific conditions (age, events, family objectives).
This approach serves multiple purposes: it helps avoid abrupt transfers (and potential disputes), preserves family businesses through long‑term continuity of management, and protects vulnerable heirs.
In an international context—and particularly in the United Arab Emirates—this combined strategy offers a bespoke solution with strong legal and tax predictability for business owners, real estate investors, and cross‑border families. It also provides the advantage of being adaptable and capable of evolving over time.