Succession Planning in UAE Without Sharia Rules

Q: How does a RAK ICC foundation avoid Sharia succession?

When assets are transferred to a RAK ICC foundation they cease to be owned by the individual and become the foundation's property. On the founder's death these assets do not enter the estate and are not distributed by inheritance law — Sharia, Russian or any other. Instead, they continue to be managed by the foundation under rules set by the founder during their lifetime.

Q: Can children of different citizenships be beneficiaries?

Yes. A RAK ICC foundation does not restrict beneficiary citizenship. One foundation can hold beneficiaries of Russian, British, German, American, and any other citizenship simultaneously. The founder sets distribution rules individually — by age, goal achievement, profession, or other criteria.

Q: What is a family charter and is it needed?

A family charter (family constitution) fixes values, principles, and rules for multi-generational capital stewardship. It complements foundation legal documents with behavioural norms: investment philosophy, role of business in the legacy, philanthropy, dispute resolution. For families with assets from $10M, a charter materially reduces future intra-family conflict risk.

Q: How to include philanthropy in a foundation structure?

A RAK ICC foundation can be hybrid — partly benefiting private beneficiaries (family) and partly charitable. Payouts to existing charities, own charitable programmes, or a separate subsidiary foundation exclusively for philanthropy are all possible. Tax treatment across jurisdictions is reviewed case by case.

Q: What happens on the founder's death?

The foundation continues to exist — the founder's death does not terminate it. Management transfers to the foundation council under the regulation, which may provide for founder replacement or transfer of functions to an independent protector. Banks and registrars do not require probate, dramatically accelerating control transition.

Q: Can beneficiaries challenge distribution?

Beneficiaries only have rights granted to them by the foundation regulation. Unlike classical inheritance with forced-heirship shares, the founder freely sets each beneficiary's rights — including full exclusion. Beneficiary disputes are resolved within UAE jurisdiction under the 2025 firewall provisions.

Q: How to protect capital from next-generation divorce?

Payouts received by beneficiaries from the foundation may count as personal property depending on the marriage jurisdiction. For maximum protection, the regulation uses discretionary (not mandatory) distributions, which in most jurisdictions excludes foundation assets from matrimonial property. Prenuptial agreements are used as reinforcement.

Definition

Succession planning via a RAK ICC foundation transfers assets into a standalone legal entity in Ras Al Khaimah, fully exempting capital from Sharia rules, probate, and forced heirship — allowing the founder to freely set distribution rules across beneficiaries of different citizenships and generations for decades ahead.

Mechanism comparison

Sharia, will, trust or RAK ICC Foundation

Criterion	Sharia (default)	Will	Foreign trust	RAK ICC Foundation
Bypass forced shares	No	Partial	Yes	Fully
Avoids probate	No	No	Yes	Yes
Multi-citizenship beneficiaries	No	Limited	Yes	Yes
Multi-generational reach	No	No	Yes (21-100 years)	Perpetual
Foreign-judgment firewall	No	No	Jurisdiction-dependent	Yes (2025)
Beneficiary publicity	Public	Public post-probate	Partial	Private

Setup

5 steps to a succession structure

Audit

Audit family assets, citizenships, existing structures, and succession goals

Design

Design foundation regulation, distribution rules, council and protector composition

Registration

Asset transfer

Legally transfer real estate, business interests, and liquid assets into the foundation

Family charter

Formalize values, management principles, and dispute resolution rules

Market data

RAK ICC foundation growth: 128 → 700+ in five years

Between 2020 and 2025 the number of registered RAK ICC foundations grew from 128 to over 700^[3]. This makes RAK ICC the fastest-growing succession-structure jurisdiction in the Gulf region. The growth reflects institutional client preference: low operating cost, 2025 firewall provisions, and FATF/OECD compliance.

Questions & Answers

Succession via RAK ICC: questions

Does Sharia law apply to foreigners in the UAE?

Under UAE Law No. 15 of 2020, non-Muslim foreigners are by default governed by the law of the deceased's country of citizenship, unless they elect otherwise. However, UAE-situated assets (real estate, local company shares) may be distributed by Sharia rules in the absence of a will. A RAK ICC foundation fully bypasses this: assets belong to the foundation, not the individual.

How does a RAK ICC foundation avoid Sharia succession?

Can children of different citizenships be beneficiaries?

What is a family charter and is it needed?

How to include philanthropy in a foundation structure?

What happens on the founder's death?

Can beneficiaries challenge distribution?

How to protect capital from next-generation divorce?

Design your succession

Every family structure is unique. The initial consultation is confidential.

Request consultation

Sources

[3] RAK ICC. Consolidated Foundations Regulations 2025.
[4] Campden Wealth / UBS. Global Family Office Report 2024.
[2] DIFC Authority. Family Wealth Centre Annual Report 2024–2025.

Multi-Generational Wealth Transfer via RAK ICC