What is Trustee in UAE?

Trustee in UAE : Definition

A trustee in UAE (أمين or وصي in Arabic) is an individual or entity legally appointed to manage, oversee, and administer assets or property for the benefit of another party (beneficiaries) in the UAE. This fiduciary role carries significant responsibilities and legal obligations under UAE law.

Understanding the Role of a Trustee

Under UAE law, a trustee serves as a legal custodian responsible for managing assets according to specific instructions or trust deeds. This role requires strict adherence to fiduciary duties, ensuring all actions benefit the trust’s beneficiaries.

Legal Requirements and Qualifications

To serve as a trustee in the UAE, specific conditions must be met:

Must be at least 21 years old
Must possess sound mental capacity
Must have no criminal record related to dishonesty
Must demonstrate financial competence
Should have relevant experience (for professional trustees)

UAE Legal Framework

The UAE maintains distinct requirements for trustees:

For DIFC Trusts:

DIFC Trust Law No. 4 of 2018 provides comprehensive regulations for trustees’ duties and responsibilities.

For Mainland UAE:

Trust arrangements are governed through:

UAE Commercial Companies Law
UAE Civil Code provisions
Financial free zone regulations

Creating a Valid Trust

The process involves several essential steps:

Preparing trust documentation
Appointing qualified trustees
Completing legal registration
Establishing proper governance

Common Concerns and Solutions

Key considerations for trustees:

Process Requirements:

Necessary documentation
Registration procedures
Legal formalities

Liability Factors:

Personal liability considerations
Insurance requirements
Compliance obligations

Practical Applications

Different scenarios require different approaches:

For Corporate Trustees: Consider ABC Trust Company managing a family trust in DIFC, ensuring professional administration and compliance.

For Individual Trustees: Take Mohammed, appointed as a trustee for his family’s assets, managing them according to Islamic principles.