Inheritance and Succession Law in Israel: A Comprehensive Guide for Foreign Residents and Heirs

از sadmin / اکتبر 20, 2025

Succession law in Israel is a complex, nuanced field that governs how property and assets are transferred after a person’s death. For foreign residents, heirs, and especially US citizens with ties to Israel, understanding Inheritance and Succession Law in Israel is essential for effective estate planning and ensuring the smooth transfer of assets across borders. This comprehensive guide is designed to demystify Israeli succession law, explain the inheritance process, and provide practical guidance for Americans and other foreigners navigating the Israeli legal system.

Inheritance and Succession Law in Israel — Inheritance and Succession Law in Israel: A Comprehensive Guide for Foreign Residents and Heirs 2

فهرست مطالب

Introduction: Why Succession Law in Israel Matters

Israel is a global hub for investment, real estate, and innovation, attracting individuals and families from around the world. Many Americans and other foreigners own property, maintain bank accounts, or have family members in Israel. When a loved one passes away, the question of how their Israeli assets will be distributed is governed by Israeli succession law, regardless of the deceased’s citizenship or the heirs’ country of residence.

Understanding succession law in Israel is crucial for:

Ensuring your wishes are respected through a valid will.
Avoiding unnecessary delays and disputes among heirs.
Navigating the probate process efficiently, especially from abroad.
Minimizing tax exposure and legal complications for your beneficiaries.

Legal Foundations of Israeli Succession Law

The Succession Law of 1965

The cornerstone of inheritance law in Israel is the Succession Law, 5725-1965. This statute governs all matters of inheritance, including the validity of wills, the order of heirs, and the procedures for probate and succession orders. The law is secular but allows for religious courts to have jurisdiction in certain cases, particularly for members of recognized religious communities.

Key Principles

Freedom of Testation: Individuals are generally free to distribute their assets as they wish through a will, subject to certain legal formalities.
Default Intestate Succession: If no valid will exists, the law in Israel prescribes a strict order of inheritance.
Jurisdiction: Israeli courts have authority over the estates of anyone who was a resident of Israel at the time of death or who left assets in Israel, regardless of citizenship.

Who Is Subject to Israeli Succession Law?

Israeli succession law applies to:

Anyone who was a resident of Israel at the time of death.
Anyone who left assets (real estate, bank accounts, investments, etc.) in Israel, even if they lived abroad.

For foreign residents and heirs:

If you inherit property in Israel, or if you are a US citizen with assets in Israel, Israeli law will govern the distribution of those assets. This is true even if your primary residence or citizenship is elsewhere.

Wills in Israel: Types, Requirements, and Best Practices

Types of Wills Recognized in Israel

Handwritten Will (Holographic Will):
Must be entirely in the testator’s handwriting, dated, and signed.
Will in the Presence of Witnesses:
Signed by the testator and two witnesses, all present at the same time.
Will Before an Authority:
Declared orally or in writing before a judge, registrar, or notary.
Oral Will (Deathbed Will):
Made in the presence of two witnesses when the testator believes death is imminent. Must be documented and deposited with the Inheritance Registrar.

Key Requirements for Validity

The testator must be of sound mind and legal capacity.
The will must comply with one of the four recognized forms.
The most recent valid will prevails over earlier versions.

Best Practices for Foreigners

Draft a Separate Israeli Will:
If you have assets in Israel, consider a will specifically for those assets, drafted in accordance with Israeli law.
Avoid Conflicts:
Ensure your Israeli will does not contradict your US or other foreign wills.
Deposit the Will:
You may deposit your will with the Israeli Inheritance Registrar for safekeeping.

Intestate Succession: What Happens Without a Will?

If a person dies without a valid will, Israeli law determines the heirs and their shares:

حکم وارثان

Spouse:
The surviving spouse receives all movable property (e.g., vehicles, household items) and a share of the remainder:
- Half if there are children or parents.
- Two-thirds if only siblings or grandparents survive.
Children:
The remainder is divided equally among the children. If a child predeceases the parent, their share passes to their descendants.
Parents and Siblings:
If there are no children, parents inherit. If no parents, siblings inherit.
Other Relatives:
More distant relatives inherit only if closer relatives do not exist.
The State:
If no heirs exist, the State of Israel inherits the estate.

The Probate Process in Israel

Step 1: Filing the Petition

To transfer assets, heirs or executors must apply for:

Probate Order: If there is a will.
Succession Order: If there is no will.

Applications are filed with the Inheritance Registrar or, in some cases, the Family Court.

Step 2: Required Documentation

Original will (if applicable)
Death certificate (with certified translation if not in Hebrew)
Proof of relationship (birth/marriage certificates)
Proof of ownership of Israeli assets
Power of attorney (if represented by a lawyer)
Affidavits and notices to other heirs

Step 3: Publication and Objections

The petition is published to allow objections. If none are filed, the Registrar issues the order.

Step 4: Asset Transfer

Once the order is granted, assets can be transferred to the heirs. For real estate, registration with the Israel Land Authority is required.

Timeline

The process typically takes several months, depending on the complexity of the estate and the completeness of documentation.

Cross-Border and International Inheritance Issues

Dual Wills and Estate Planning

Separate Wills:
Consider having separate wills for Israeli and foreign assets to avoid conflicts and streamline probate.
Language and Translation:
Wills in English must be translated and notarized for use in Israel.
Legalization:
Foreign documents require apostille or consular authentication.

Taxation

No Inheritance Tax in Israel:
Israel abolished inheritance tax.
Capital Gains Tax:
May apply to the sale of inherited assets in Israel

Recognition of Foreign Wills

Israeli courts generally recognize foreign wills if they meet Israeli legal requirements and do not contradict public policy.

Probate in Multiple Jurisdictions

If assets exist in both Israel and another country, probate may be required in both jurisdictions.

Required Documents and Practical Steps

Essential Documents

Death Certificate:
Translated and notarized if not in Hebrew.
Will:
Original or certified copy.
Heir Identification:
Passports, birth certificates, etc.
Proof of Ownership:
Land registry, bank statements, etc.
Affidavits:
Confirming facts and relationships.
Legalization:
Apostille or consular authentication for foreign documents.

Practical Steps

Inventory Israeli Assets:
Identify all property, bank accounts, and investments in Israel.
Consult Dual-Qualified Attorneys:
Work with lawyers familiar with both Israeli and your home country’s law.
Prepare Proper Documentation:
Gather and legalize all necessary documents.
File the Petition:
Submit the application for probate or succession order.
Communicate with Heirs:
Ensure all heirs are informed and involved in the process.

Common Pitfalls and How to Avoid Them

Invalid Will:
Wills not meeting Israeli legal requirements may be rejected.
Unclear Heir Identification:
Lack of proper documentation delays proceedings.
Overlooking Israeli Assets:
Foreign wills may not specifically address Israeli property.
Tax Surprises:
Failing to consider US estate tax or capital gains on inherited assets.
Delays in Probate:
Missing documents or procedural errors can cause significant delays.
Conflicting Wills:
Multiple wills in different jurisdictions may create legal uncertainty.

How to Avoid Pitfalls:

Work with experienced attorneys in both Israel and your home country.
Keep all documentation up to date and properly legalized.
Clearly specify your wishes regarding Israeli assets in your will.

Guidance for US Citizens and Foreign Heirs

Estate Planning Tips

Draft an Israeli Will:
Address Israeli assets specifically to avoid ambiguity.
Review Existing Wills:
Ensure your US and Israeli wills do not contradict each other.
Consider Guardianship:
Appoint guardians for minor children in your will.
Plan for Probate:
Understand that probate is required in Israel for asset transfer.

During the Inheritance Process

Engage Local Counsel:
Israeli attorneys Menora Law can navigate the local legal system and expedite the process.
Prepare for Translation and Legalization:
All foreign documents must be translated and properly authenticated.
Stay Informed:
Communicate regularly with your attorney and co-heirs.

After Receiving Assets in Israel

Register Real Estate:
Update ownership with the Israel Land Authority.
Manage Bank Accounts:
Israeli banks may require additional documentation for foreign heirs.
Consider Tax Implications:
Consult tax advisors in both countries regarding reporting and potential liabilities.

Frequently Asked Questions: Inheritance and Succession Law in Israel

Q: Can a US will be used in Israel?
A: Yes, if it meets Israeli legal requirements and is properly translated and authenticated. However, a separate Israeli will is often recommended for efficiency.

Q: Is there inheritance tax in Israel?
A: No, Israel abolished inheritance tax in 2004. However, US estate tax may still apply to US citizens.

Q: How long does the probate process take in Israel?
A: Typically several months, depending on the complexity of the estate and completeness of documentation.

Q: Can non-Israelis inherit property in Israel?
A: Yes, there are no restrictions on foreign heirs, but additional documentation may be required.

Q: What happens if there is a dispute among heirs?
A: Disputes are resolved by the Family Court or Inheritance Registrar. Legal representation is strongly advised.

Q: What if the deceased had assets in both Israel and the US?
A: Probate may be required in both countries. Separate wills and coordinated estate planning are recommended.

Conclusion: Planning for Peace of Mind

Succession law in Israel is designed to provide clarity and fairness in the distribution of assets after death. For foreign residents and heirs, especially US citizens, understanding and planning for these laws is essential. By preparing a valid will, gathering the right documentation, and working with Menora Law Firm, you can ensure that your wishes are honored and your loved ones are protected in Israel.

Estate planning in Israel is not just about legal compliance, it’s about peace of mind for you and your family. Take proactive steps today to secure your legacy in Israel .

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