Complexities of Inheritance and Probate Estate Administration in Israel

Inheritance and Probate Estate Administration in Israel is highly complex. The property of a deceased individual is called their Estate. The Succession Law governs a person’s estate in Israel after their passing. A person’s estate includes their property at the time of death and any rights, actions, and obligations. The estate and the heirs to the estate may not absolve themselves of any actions the deceased performs before their death. For instance, if a woman sold her car to another person before her death, the estate is entitled to the agreed-upon compensation but may not withdraw from the sale.

Will Execution and Estate Distribution under Israeli Law

The estate of a deceased individual in Israel is meted out according to a person’s will (if an Israeli will exist), after a probate order has been issued, or according to the specific stipulations of Israeli Succession Law if there is no will or if the will is being disputed. In Israel’s Inheritance and Probate Estate Administration cases, the estate is distributed to the heirs. In Israel, an estate manager is required in some Inheritance and Probate Estate Administration cases. This procedure is standard where debts are attached to the estate or objections to the probate or inheritance order have been submitted.

The Importance of Legal Assistance in Estate Administration

Dealing with inheritance and estate distribution in Israel is a complex and delicate matter. The distribution of an estate, especially when substantial or disputed, can have a profound financial and emotional impact on the heirs. This underscores the importance of seeking legal assistance from an Israeli law firm specializing in Inheritance and Probate Estate Administration. A skilled lawyer can help navigate the complex processes of estate management and distribution in a fair, neutral, and responsible manner. It’s crucial to remember that professional legal advice is essential, especially when an estate manager is required.

The Role and Responsibilities of an Estate Manager

The estate manager plays a crucial role in the probate estate administration process. Their responsibilities include gathering all the deceased’s assets (the estate), settling any outstanding debts attached to the estate, and distributing the remaining estate among the heirs. According to section 97 of Israeli Succession Law, the estate manager is empowered to take ‘all that is needed to fulfill his duty’ [all translations in this article are unofficial], except for specific actions that require special court permission. The expenses incurred during this process, including the manager’s salary, are covered by the estate.

 

It is crucial to note that these debts and expenses precede the heirs’ right to the estate in Israel. Thus, if the estate has been distributed before all known debts have been paid, all heirs will be responsible for those debts. This potential financial impact underscores the importance of understanding the full scope of the estate before distribution. Before the probate order and distribution of the estate in Israel, heirs are not responsible for debts beyond the estate’s property according to the Israeli inheritance law.

How Will an Estate Manager Help With a Probate Estate Administration?

An estate manager will take the following actions, among others, upon assuming their role:

• Open a separate bank account to manage the estate.
• Chronicle and track all income and expenses of the estate.
• Pay all outstanding debts and expenses of the estate.
• Distribute the remainder of the estate among the heirs after paying debts and expenses.
• Take legal action against an heir or any person who has caused harm to the estate.
• File a deposition to a court detailing the distribution of the estate (including the value of the property given to each heir at the time of distribution) within thirty days after the distribution of the estate.

Tax Implications of Israeli Estate Distribution

Another essential aspect to be considered is the tax implications of estate distribution in Israel. Most Western countries impose some inheritance tax. These countries also usually impose some form of tax on gifts to prevent the possibility of tax evasion by gifting property. In Israel, an inheritance tax was imposed in 1949, one of the first laws passed, signifying its perceived importance. However, the law was annulled in 1981 and has yet to be renewed. There have been attempts to reinstate some inheritance tax in recent years, but they have yet to pass.
As stated, there is no inheritance or estate tax in Israel at the current time. However, many Israeli citizens hold dual citizenship, which exposes them to other countries’ tax laws. For instance, over 300,000 Israeli citizens residing in the US may also be American citizens and are, therefore, subject to US tax laws.

Furthermore, the estate tax in the United States may be applied even to Israelis who aren’t citizens or residents of the United States if they own property in the United States that exceeds the value of 60,000 U.S. dollars (this amount may change with time). Such property may include real estate in the United States, trust funds, and even shares of American companies. These regulations change frequently; thus, it is paramount to consult an experienced Israeli probate attorney to guide you through the process before determining the best strategy of which steps to choose to safeguard one’s property.

Contact Aharoni Law Firm for A Free Consultation

Don’t wait until the last minute. We are in Tel Aviv, with offices in New York and Los Angeles, California. We invite you to schedule a complimentary consultation with our firm to learn how we can help you navigate your inheritance and probate estate administration matters in Israel. Early consultation can help you take proactive steps to protect your interests.

We represent international clients from the United States, Canada, the UK, Europe, and Israel. Please contact us from the US or Canada at 1.888.923.0022 or in Israel at (972) 3.9055478 or (972) 50.7322688 to schedule a discussion regarding your Inheritance and Probate Estate Administration in Israel case.