Singapore VCC insights

UAE Trust Law for a Gulf Family: Onshore, DIFC and ADGM Trusts Against a Singapore Trust

By VCC Editorial Team · Published 6 November 2026

Short answer: UAE trust law now has three regimes: registered onshore trusts with legal personality under Federal Decree-Law No. 31 of 2023, DIFC trusts with statutory heirship firewalls, and ADGM trusts under English law. Singapore offers an unregistered common law trust with a narrower section 90 shield. The right choice depends on asset location, trustee and courts.

This article is general information only and is not legal, tax or investment advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.

UAE trust law now runs on three tracks inside one country: a federal civil-law statute for the mainland, a codified common law statute in the DIFC, and English trust law applied directly in ADGM. Each answers a Gulf family’s practical questions differently: who owns the assets, whether heirs can challenge the gift, who may act as trustee and which court decides. This article compares the three regimes with a Singapore trust using the primary texts on uaelegislation.gov.ae, the DIFC legal database, ADGM, MAS, the Inland Revenue Authority of Singapore (IRAS) and Singapore Statutes Online. All sources were checked on 6 November 2026.

What does UAE trust law look like in 2026?

There are three parallel regimes, selected by where the trust is created and which law governs it. The federal Decree-Law covers the mainland; the DIFC and ADGM have their own trust legislation and courts.

Article 2(1) of Federal Decree by Law No. (31) of 2023 applies it “to every trust created in accordance with its provisions, except for the Financial Free Zones that have legislation to regulate the Trust created therein”. The UAE Legislation portal lists the Decree-Law as “Active”, effective 30 September 2023. Article 54 repeals Federal Decree by Law No. (19) of 2020, which older summaries still describe as current.

How does an onshore UAE trust work under Federal Decree-Law No. 31 of 2023?

An onshore trust is a registered legal person, not a private relationship. It exists only once the emirate’s Competent Authority has approved the instrument and entered it in the Record.

The official English text of the Decree-Law sets out the main features:

• Approval: the Competent Authority reviews whether the instrument is compatible with the Decree-Law “and does not conflict with the public order in the State”, then issues a Trust Validity Certificate (Article 42(2)).
• Personality: the trust “shall acquire the legal personality as of the initial registration date” (Article 3(1)), and trust property does “not enter the estate” of the settlor or trustee on death or bankruptcy (Article 3(2)).
• Duration: if the instrument sets no period, “the Trust shall be deemed for life unless otherwise is established from the circumstances as assessed by the Competent Court” (Article 5(2)(d)).
• Settlor powers: if the instrument expressly allows, the settlor may keep powers to revoke, amend, add or exclude beneficiaries, change the trustee and direct investment (Article 12(1)).
• Confidentiality: only the settlor, trustee and protector may view the Record; other disclosure needs a court order (Article 46).

Two limits matter. Article 39(1)(b) lets the court nullify a trust whose purpose is “the evasion of the Settlor from paying debts, taxes, or any other financial obligations”, returning the property to the settlor or his heirs. And the Decree-Law has no article dealing expressly with foreign law, forced heirship or Shariah succession claims. How onshore courts would weigh a claim by heirs against a registered trust is not answered in the text, and we found no official guidance on it.

What does the DIFC Trust Law offer a Gulf family?

The DIFC offers a codified common law trust with the most explicit statutory firewall of the four regimes, naming heirship rights and blocking inconsistent foreign judgments.

The DIFC Trust Law, Consolidated Version No. 3 (March 2024) replaced the Trust Law 2005. Its key provisions for a family are:

• Article 13: capacity, validity, administration and powers are determined by DIFC law “without reference to the laws of any other jurisdiction”, except that it does not validate a trust of foreign land invalid where the land sits.
• Articles 14(1)(b) and 15: a DIFC trust is not defeated by foreign “heirship rights”, and a foreign heirship right over a living person’s property is not recognised as affecting “movable property including a Digital Asset wherever it is situated”.
• Article 16: foreign judgments inconsistent with Articles 13 to 15 are not recognised or enforced.
• Article 14(3) to (5): a creditor can reach transferred property only by proving intent to defraud and that the transfer left the settlor insolvent, and then only to the extent of the settlor’s former interest.
• Article 36: a trust “may continue indefinitely”.
• Article 84: the settlor or a protector may hold powers to revoke, vary, direct distributions and direct investments without invalidating the trust.

No registration step appears among the creation requirements in Article 34. The DIFC database page for the law shows an “Inactive” label, but the same label appears on laws plainly in force, such as the Operating Law, and the Trust Law remains listed among current DIFC laws.

How are ADGM trusts governed, and what changed in 2026?

An ADGM trust is an English law trust: a private, unregistered relationship, supplemented by a short ADGM statute on foreign claims and purpose trusts.

The ADGM Registration Authority’s trusts guidance states that English common law and equity apply directly under the Application of English Law Regulations 2015, “supplemented by certain English statutes and the ADGM Trusts (Special Provisions) Regulations 2016”. The trust is “a private legal arrangement. No formal registration required”, and “does not, and cannot, have separate legal personality”: the opposite design from the onshore Decree-Law.

On foreign claims, ADGM is direct: “Foreign inheritance or forced-heirship rules, including those arising under Islamic law, do not affect the validity of an ADGM trust or the disposition of property to such a trust.” The ADGM Courts may still refuse arrangements that are “fraudulent, sham, or otherwise contrary to ADGM public policy”. Non-charitable purpose trusts are permitted with an independent enforcer.

On 1 May 2026, ADGM published amendments, effective on publication, to the 2016 Regulations and other laws: “Foundations and trusts can no longer be set up for purposes that fall within ADGM’s definition of non-profit organisations under its Anti-Money Laundering framework.” The guidance also reminds trustees that Federal Decree-Law No. (10) of 2025 and Cabinet Resolution No. (134) of 2025 require beneficial ownership information to be held during the appointment and for five years after it ends.

Which regime best protects a trust against forced heirship claims?

On the texts, the DIFC and ADGM give the clearest protection, Singapore gives conditional protection, and the onshore Decree-Law gives estate separation without an express heirship rule.

Singapore’s rule is section 90(2) of the Trustees Act 1967: no rule relating to inheritance or succession affects the validity of a trust, or of a transfer of property to it, where the settlor had capacity under Singapore law, the law of domicile or nationality, or the proper law of the transfer. Section 90(3) confines it to settlors who are neither Singapore citizens nor domiciled in Singapore, trusts expressed to be governed by Singapore law, and Singapore-resident trustees. A Gulf national not domiciled in Singapore can qualify; our analysis of the Singapore section 90 forced heirship shield covers the conditions.

Every firewall binds only the courts that apply it. Land in Riyadh or mainland Dubai, and bank accounts in a home jurisdiction, stay within reach of local courts whatever a DIFC, ADGM or Singapore statute says, so asset location and holding-company layers matter as much as the governing law. Our comparison of trust dispute forums including the DIFC Courts sets out the litigation options.

Who can act as trustee, and who licenses them?

Each regime lets individuals act privately but licenses professional trustees through a different authority.

Onshore, a legal person trustee must be a licensed Professional Legal Person, and the settlor may be both trustee and beneficiary (Article 13). Professional trustees are licensed by each emirate under Cabinet Resolution No. (141) of 2023, effective 16 January 2024. The Decree-Law’s definition of a professional legal person includes one licensed “in any of the financial free zones”. In ADGM, anyone carrying on trust business by way of profession is subject to licensing, prudential, conduct and anti-money laundering requirements under the FSRA framework. In the DIFC, financial firms are licensed by the Dubai Financial Services Authority (DFSA); we could not open the DFSA Rulebook’s trust services definition on 6 November 2026, so confirm a proposed trustee’s permissions on the DFSA public register.

In Singapore, MAS states that a company creating express trusts, acting as trustee, arranging trustees or providing trust administration “may need to be licensed under the TCA”. Private trust companies are exempt but must engage a licensed trust company for anti-money laundering compliance. See our guide to the Singapore trust business licence.

How do the four regimes compare side by side?

The table summarises the statutory position as at 6 November 2026. “Not stated” means the official texts we reviewed do not address the point.

Feature	UAE onshore	DIFC	ADGM	Singapore
Main law	Federal Decree by Law No. (31) of 2023	DIFC Law No. 4 of 2018	English law; Trusts (Special Provisions) Regulations 2016	Trustees Act 1967; Civil Law Act 1909
Legal personality	Yes, from initial registration	Common law trust	No	Common law trust
Registration	Approval and Record registration required	No registration step in Article 34	Not required	Not required
Heirship rule	None express; property outside estate (Art 3(2))	Foreign heirship rights not recognised (Arts 14 to 16)	Forced heirship, including Islamic law, does not affect validity	Inheritance rules do not affect validity, subject to s 90(3)
Reserved powers	Wide, if instrument allows (Art 12)	Wide (Art 84)	Protector powers described in ADGM guidance	Investment and asset management (s 90(5))
Duration	Set by instrument, else “deemed for life”	Indefinite (Art 36)	Not stated	100-year perpetuity period
Trustee licensing	Each emirate	DFSA (check register)	FSRA	MAS

How is a UAE trust taxed, and how does Singapore compare?

UAE corporate tax treatment depends on the type of trust and must be confirmed for each structure; the legal personality difference above is the starting point.

The Federal Tax Authority lists a reissued guide, Taxation of Family Foundations (CTGFF1), dated 10 June 2026. The PDF did not open in our checks, so we do not restate its conclusions here; our article on family foundation UAE corporate tax and Article 17 transparency reviews the guide. In Singapore, IRAS confirms estate duty was removed for deaths on or after 15 February 2008, and the Income Tax Act 1947 contains specific exemptions for qualifying foreign trusts (section 13F) and locally administered trusts (section 13N). Our guide to the taxation of trusts in Singapore explains the rest.

How should a Gulf family choose between UAE trust law and a Singapore trust?

Start with where the assets and heirs are, then choose the law and trustee. Many families use more than one regime.

1. Map assets by location: UAE mainland property, free zone holdings, home-country assets, portfolios and operating companies.
2. Identify the heirship exposure: nationality, domicile, the succession law on death, and where heirs could sue.
3. Match each asset class to a forum that controls it: onshore trusts for mainland assets, DIFC or ADGM trusts for movables and holding companies, a Singapore trust for assets booked or managed in Asia.
4. Confirm the trustee’s licence on the relevant register, or decide whether a private trust company is appropriate.
5. Draft reserved powers within each statute’s safe harbour.
6. Take UAE and Singapore tax advice on the trust and each underlying company.
7. Record the settlor’s domicile and capacity at each transfer, and review after any relocation.

The UAE regimes offer proximity, onshore trusts respected across all emirates (Article 48(2)), English law in ADGM and the most explicit firewall in the DIFC. Singapore’s case rests on an Asian banking and fund management base and MAS-licensed trustees. For foundations, see our comparison of Singapore trusts with ADGM and DIFC foundations; for Singapore holding companies beneath a trust, Singapore Secretary Services provides corporate secretarial support.

Frequently asked questions

Is the 2020 UAE trust law still in force?

No. Federal Decree by Law No. (19) of 2020 was repealed by Article 54 of Federal Decree by Law No. (31) of 2023, effective 30 September 2023. Resolutions under the 2020 law continue only where they do not conflict with the 2023 law.

Does the onshore UAE trust law apply in the DIFC or ADGM?

No. Article 2(1) excludes financial free zones with their own trust legislation, which both the DIFC and ADGM have.

Can a UAE national use a Singapore trust to depart from Shariah inheritance shares?

Section 90 can apply if the settlor is not a Singapore citizen or domiciliary, the trust is expressed to be governed by Singapore law and the trustees are Singapore-resident. Assets left in a home jurisdiction remain subject to its courts.

Does an onshore UAE trust have to be registered?

Yes. The instrument must be approved by the emirate’s Competent Authority and registered in its Record; the trust takes effect on initial registration.

Can ADGM trusts still be used for philanthropy?

Since 1 May 2026, ADGM trusts cannot be set up for purposes within ADGM’s anti-money laundering definition of non-profit organisations. Take advice on what remains permitted.

Sources

• UAE Legislation: Federal Decree by Law No. (31) of 2023 Concerning Trust
• DIFC: Trust Law, DIFC Law No. 4 of 2018, Consolidated Version No. 3
• ADGM: Trusts in ADGM
• MAS: Licensed trust companies
• IRAS: Estate duty

Raffles Corporate Services helps Gulf and Asian families set up the Singapore companies, VCCs and family office structures that sit beneath a trust, working alongside licensed trustees and law firms, and handles VCC incorporation, family office set-up and ongoing compliance. Email hello@rafflescorporateservices.com or Call/SMS/WhatsApp +65 8501 7133, or visit Raffles Corporate Services.

Last reviewed: 6 November 2026. The Editorial Team, Variable Capital Companies Act.