The Estates Court in Dubai took an unconventional path in dealing with debtor estates, in a way that preserves both the rights of creditors and the interests of the heirs. This is an experience that “deserves to be told,” according to the president of the court, Judge Mohammed Jassim Al Shamsi, who confirmed that this new methodology enjoys support from the leadership. It is currently being tested with two large indebted estates.
Al Shamsi said, during a media session on “The Role of the Estates Court and its Social Impact,” that the court appoints an expert, according to the new procedure, to develop a complete plan for managing debtor estates that have no justification for sale or liquidation, according to which the debts accumulated on them are scheduled, and then the plan is presented to the creditors. Pointing out that there are those who welcome this as long as they obtain their full rights within an appropriate period of time.
In detail, Judge Muhammad Jassim Al Shamsi stated that there are three types of inheritances: the first is “ordinary” which confines its assets and is divided among the heirs, the second is “bankrupt” and has a clear path followed by the court, while the third is “debit” or semi-bankrupt, and it is assumed – according to the traditional path – Pay off the accumulated debts, then distribute what remains to the heirs.
He pointed out that “there are very large legacies, which include various assets, but they have large debts, and require unconventional procedures to deal with them, so that the matter does not result in loss to the heirs and creditors.”
He explained that “the new procedure, which the estate court is currently adopting, is to appoint an expert who calculates the annual income of the estate, compares it to the debt, and then develops a repayment plan that is presented to the creditors. They may be patient for three or four years if they believe that they will recover their full rights, but implementation may be difficult.” “If it takes a long time.”
He pointed out that “the judge determines the path of dealing with the indebted or semi-bankrupt estate according to the file, and work is currently underway according to the new methodology with two large estates, as the creditors have agreed to pay according to this path, through a management and operation plan for the estate’s assets.”
He continued, “The Estates Court addressed the Execution Court to stop the sale of assets, and to discuss the operational plan with the two parties. If the ruling is issued to approve the debt payment plan, there will be no problem, and it will be considered an important experience, and a story worth telling, in which the social and economic dimension was taken into account, and according to which all parties will obtain… Their rights, while preserving assets.
Al Shamsi explained that the Estates Court took this path with large estates that had no justification for sale or liquidation, to pay off the inheritor’s accumulated personal or real estate loans or other debts, pointing out that “the judge has several tools that he can use flexibly, according to the interest of the heirs and related parties.” The relationship can be delayed, advanced, or paid in installments,” stressing that “there is support from the leadership for the new experience that enhances the social impact of the role of the estate court.”
He continued that the court works according to an integrated system as a judicial body specialized in giving people their rights, taking into account the social dimension related to inheritance, as the inheritor leaves behind a full life full of details that require taking into account the conditions of the beneficiaries, and taking care not to prolong the settlement period until souls calm down, and the relationship of the heirs remains strong and cohesive.
Al Shamsi pointed out that the Probate Court is keen to strengthen partnerships with entities related to the social aspect, such as the Community Development Authority, due to the importance of this role, stressing that he is very proud of families that place the value of tolerance among their members above material considerations.
He pointed out that there are men who act with a great deal of nobility, as they are keen to appease their mothers or sisters, and ensure that they obtain their full rights before themselves, stressing that the people most entitled to the inheritance in the event of it being relinquished are the family members, especially the mother and sister.
He stressed that he always recommends a person to his sister “because he is the breadwinner after the death of the father, so she is more deserving of the inheritance if he decides to give up his right or part of it,” noting that “the estate court does not deny anyone his right, and he will get it in full, but if he He has a margin that he can give up, so we recommend those closest to him,” pointing out that he always feels happy and is keen to highlight shining examples of people who prefer their family over themselves.
It is noteworthy that the Estates Court in the Dubai Courts achieved remarkable results during the first year of its establishment in 2023, which included the amicable settlement of inheritance disputes worth 2.3 billion dirhams, in addition to 626 properties that were also settled amicably, while the average duration of the amicable settlement in inheritance files reached 626 properties. The value of the claims before the court exceeded 32.8 billion dirhams, and it issued 1,287 certificates to inventory estates. It completed 68% of the files within 11 months, and the approval rate for the initial rulings issued by it reached 71%.
The Estates Court was able to settle old disputes over estates, some of which extended for more than 10 years, including a complex dispute between heirs since 2014, and a consensual division was finally reached, according to which they obtained their rights.
It also settled, in just one day, a dispute that lasted four years over the estate of Medina, and the value of the settlements it completed in less than a year since its establishment amounted to about 2.3 billion dirhams.
An unexpected heir
The President of the Estates Court in Dubai, Judge Mohammed Jassim Al Shamsi, said that there are disputes related to estates that are not without strangeness, and perhaps complexity, including a dispute that the court was able to settle between the heirs, but it took time.
Before the shares were distributed and the division was finalized, everyone was surprised by the appearance of an unexpected heir, who was another wife of the deceased, whom no one knew about. The division was postponed until she legally proved that she was married to him and was included in the hisbah, pointing out that these situations occur because they are human issues related to life. .
. The Estates Court in Dubai Courts achieved remarkable results.
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