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Knowledge Centre - DIFC Wills

Liabilities and Residuary Estate in DIFC Wills

How does the payment of liabilities and distribution of residuary estate work under the DIFC WPR Rules?

Given that property financing and other loans are common feature in the UAE, it is important to understand how the payment of liabilities and distribution of residuary estate (i.e. whatever is left for distribution) work under the DIFC Wills & Probate Registry Rules (DIFC WPR Rules) after the death of the person registering the Will (Testator).

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Under the DIFC WPR Rules, the executors have the responsibility to first:

  1. pay of the funeral, testamentary and administration expenses;
  2. pay all expenses, debts and other liabilities as are properly payable; and
  3. set aside a fund sufficient to provide for any pecuniary legacies (gifts) bequeathed by the DIFC Will.

The specific order of the above payments is specified in the DIFC WPR Rules.

The distribution of the residuary estate thus only takes place after the payment of funeral, testamentary, administration expenses, expenses, debts, other liabilities and pecuniary legacies (gifts). For example, if the spouse of the Testator is entitled to the residuary estate of the Testator, such spouse will receive such entitlement only after the above formalities have been completed upon the completion of the Grant of Probate process.

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