The Civil Transactions Law permits written lifetime annuity agreements for relatives, outlining obligations, termination events and claim rights.
The guidance, published on June 7, 2026, explains that such arrangements are legal under the Civil Transactions Law, specifically articles 948 to 952 of Federal Decree Law No. 25 of 2025.
The provision covers periodic support for education, treatment or maintenance without requiring consideration.
The answer was provided by Mohammad Ebrahim Al Shaiba, Special to Gulf News, in response to a reader’s query about supporting a relative with a life‑annuity, and the article notes it is a one‑minute read.
Key Requirements for a Valid Annuity To be enforceable, the annuity must be documented in writing, according to the same legal framework.
The written contract must clearly state whether the obligation runs for the life of the obligor, the obligee, or a third party.
This flexibility allows families to tailor support to their specific circumstances while staying within the law.
The requirement for a written document aligns with the principle in UAE civil law that contracts must be evidenced in writing to be enforceable.
The law also lists events that automatically end the obligation.
Death of the obligor, bankruptcy or insolvency of the obligor will extinguish the contract.
If the obligor cannot fulfil the promise, the obligee can seek performance through the courts, ensuring that the agreed support can be enforced if needed.
These termination triggers are designed to balance the interests of both parties.
What Happens if the Obligor Dies When the obligor passes away before the obligee, the law grants the obligee a proportional share of the annuity.
The portion reflects the time elapsed until the obligor’s death and can be claimed from the estate as a bequest, unless the parties have agreed otherwise.
This clause protects the obligee’s right to continue receiving support even after the payer’s death.
The proportional calculation is based on the actual time the obligor fulfilled the commitment, which the courts can verify.
Article 952 specifically addresses the claim process, allowing the obligee to pursue the estate for the owed amount.
The provision ensures that the financial promise does not vanish with the obligor’s death, providing a safety net for the beneficiary.
By codifying the claim process, the legislation ensures that the financial promise can be enforced.
These rules together create a clear legal pathway for families wishing to secure long‑term financial assistance for loved ones.
Frequently asked questions
Can I set up a lifetime annuity for a family member in the UAE? Yes.
Under articles 948‑952 of Federal Decree Law No. 25 of 2025, the UAE permits written lifetime annuity contracts for relatives to cover education, treatment or maintenance.
What are the legal requirements for a lifetime annuity contract in the UAE? The contract must be in writing, clearly state whether the obligation runs for the life of the obligor, the obligee or a third party, and comply with the Civil Transactions Law’s provisions on duration and termination.
When does a lifetime annuity obligation end under UAE law? The obligation automatically ends upon the death, bankruptcy or insolvency of the obligor, or if the obligor cannot fulfil the promise, as specified in articles 948‑952.
What happens to the annuity if the payer dies before the beneficiary? If the obligor dies first, the obligee is entitled to a proportional share of the annuity based on the time elapsed, which can be claimed from the estate as a bequest unless otherwise agreed.
Do I need to provide consideration for a lifetime annuity under UAE Civil Transactions Law? No consideration is required; the law permits periodic support for education, treatment or maintenance without the need for consideration, provided the contract meets the written‑form requirement.
