You’ve just learned that you are entitled to a large inheritance from Israel — perhaps a bank account in Bank Leumi or Hapoalim, proceeds from the sale of inherited real estate in Tel Aviv, or dormant assets that have been sitting unclaimed for decades. The probate process is underway, and the moment is approaching when those funds will finally be wired to your bank account in the United States.

Then you hit an unexpected wall: the Israeli bank, the American bank, or both are asking for a valid U.S. passport to process the international wire transfer — and you don’t have one. Whether you’re an expatriate, a legal resident, or an international heir without a U.S. passport, you may face additional hurdles. Maybe your passport expired, and renewal is backlogged. Maybe you’re a lawful permanent resident (green card holder) who never held a U.S. passport. Maybe you’re a U.S. resident on a visa, or you hold citizenship in another country entirely.

Whatever the reason, the good news is that not having a U.S. passport does not mean you cannot receive your Israeli inheritance. There are well-established legal pathways and alternative forms of identification that allow heirs to receive international wire transfers from Israel, helping you feel supported and confident in your options. To assist clients in this situation, we outline the specific steps you can take, including submitting alternative identification documents or granting a Power of Attorney. Below, we explain the process, the challenges, and the solutions our firm uses every day to help clients worldwide claim their Israeli inheritance.

Why Banks Ask for a Passport in the First Place

International wire transfers — especially large ones involving inheritance proceeds — trigger compliance obligations on both the Israeli and American sides of the transaction. Understanding these requirements can help you feel more secure and in control. These obligations stem from anti-money laundering (AML) regulations, Know Your Customer (KYC) requirements, the U.S. Bank Secrecy Act, and FATCA (the Foreign Account Tax Compliance Act).

Israeli banks, in particular, have become increasingly strict in their compliance procedures for foreign account holders and international transfers. Since 2014, when the Bank of Israel signed a bilateral agreement with the United States to implement FATCA, every Israeli bank has been required to verify the identity and tax status of any U.S.-connected person involved in a transaction. On the American side, receiving banks must verify the account holder’s identity under the USA PATRIOT Act and related regulations.

A passport is the universally accepted gold standard of identification for cross-border financial transactions because it is government-issued, includes a photograph, and is internationally recognized. But it is not the only acceptable document that can help you feel supported and confident in your options.

Alternative Identification Documents Accepted for Wire Transfers

If you do not have a valid U.S. passport, the following documents may be used, depending on the specific requirements of the banks involved and the circumstances of the transfer.

On the U.S. (Receiving) Side

American banks that receive incoming international wire transfers generally accept multiple forms of government-issued photo identification to verify the account holder’s identity. These commonly include:

• A state-issued driver’s license or state-issued identification card
• A U.S. military ID
• A permanent resident card (green card, Form I-551)
• A valid foreign passport (if the heir holds citizenship in another country)
• An Individual Taxpayer Identification Number (ITIN) in combination with another photo ID, for non-citizens who do not have a Social Security Number

If you already have an active U.S. bank account, the bank has already verified your identity when you opened the account. In most cases, receiving an incoming wire transfer does not require you to present additional identification at the time the funds arrive — the wire simply deposits into your existing account. The compliance burden falls primarily on the sending side.

On the Israeli (Sending) Side

Israeli banks are often the more demanding party regarding the documentation required to release inheritance funds to foreign heirs. The bank will want to verify:

1. Your identity — typically through a certified copy of your passport or other government-issued ID, authenticated (apostilled) if necessary.
2. Your entitlement to the funds, through the Israeli Probate Order or Succession Order issued by the Israeli family court.
3. The source and legitimacy of the funds — to satisfy AML requirements.
4. Your tax status, particularly whether you are a U.S. tax resident subject to FATCA reporting.

Practical solutions include using a foreign passport from any country, which is generally accepted for identity verification. If you hold dual citizenship — for example, Canadian, British, Australian, or any other nationality — that passport can serve as your primary identification document. An Israeli bank does not specifically require a U.S. passport; it requires a valid, government-issued identification document that can be verified, helping you feel empowered with multiple options.

Practical Solutions When You Don’t Have a U.S. Passport

Here are the specific approaches our firm employs to help clients in this situation, so you can feel reassured that experienced professionals are guiding you through the process.

1. Use an Alternative Government-Issued ID

If you hold a valid green card, a state-issued ID, or a passport from another country, these documents can typically satisfy the identification requirements on both ends of the transfer. Your Israeli attorney can work directly with the Israeli bank’s compliance department to confirm which documents they will accept and submit certified copies on your behalf through a properly executed Israeli Power of Attorney. This proactive approach helps prevent delays and ensures a smooth transfer of inheritance funds.

2. Grant an Israeli Durable Power of Attorney

One of the most effective tools for heirs living abroad is the Israeli Durable Power of Attorney. This document authorizes your Israeli attorney to act on your behalf in all matters related to the inheritance, including interacting with the bank, presenting documentation, signing forms, and directing the wire transfer. Under current Israeli law, a properly executed Durable Power of Attorney remains valid and effective, allowing your attorney to handle the entire process without you ever needing to set foot in Israel or present a passport in person at a bank branch.

At Aharoni Law Firm, we routinely prepare and execute Powers of Attorney for our international clients. If you cannot read Hebrew, we provide an English version that is an exact translation of the Hebrew form. The Power of Attorney can be signed at an Israeli consulate abroad or before a notary, with the appropriate apostille.

3. Use an Attorney Trust Account for the Transfer

In many cases, particularly when the Israeli bank raises procedural difficulties, your Israeli attorney can receive the inheritance funds into the law firm’s trust (escrow) account in Israel and then wire them to your bank account abroad. This approach has several advantages:

• The attorney’s trust account is already fully verified and compliant with Israeli banking regulations.
• The attorney can handle all AML and compliance documentation directly with the bank.
• The transfer from the attorney’s trust account to your personal account abroad is a straightforward international wire, which your receiving bank processes based on your existing account verification.

This is a common and well-established practice in Israeli inheritance law. Our firm has wired inheritance proceeds to clients in the United States, Canada, the United Kingdom, Australia, and throughout Europe.

4. Expedite Your Passport Renewal or Apply for an ITIN

If timing allows, it’s worth pursuing a passport renewal or first-time application. The U.S. Department of State offers expedited processing for passport applications, which can sometimes be completed in a matter of weeks. If you are not a U.S. citizen but are a tax resident, applying for an ITIN through the IRS can provide an additional identification number that satisfies certain banking requirements.

5. Open a Bank Account with Accepted Documentation

If you do not currently have a U.S. bank account and need one to receive the wire transfer, many American banks will open accounts for non-citizens or residents using a combination of a foreign passport, an ITIN or Social Security Number, and proof of address. Some banks and fintech platforms have more flexible requirements than others, and your attorney can advise you on institutions that are accustomed to handling international inheritance transfers.

FATCA and Tax Reporting: What You Need to Know

Regardless of what identification document you use to receive your inheritance wire transfer, if you are a U.S. tax resident — whether a citizen, green card holder, or resident alien — you have reporting obligations to the IRS. Israel does not impose an inheritance or estate tax. However, the United States requires reporting of foreign inheritances and foreign financial accounts.

Key forms that may apply to your situation include:

• IRS Form 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts): Required if you receive a foreign inheritance exceeding certain thresholds.
• FinCEN Form 114 (FBAR): Required if you had signature authority over, or a financial interest in, foreign financial accounts with an aggregate value exceeding $10,000 at any point during the tax year.
• IRS Form 8938 (Statement of Specified Foreign Financial Assets): Required under FATCA for specified foreign financial assets above certain thresholds, filed with your annual tax return.

If your inheritance involves real estate in Israel that will be sold, you should also be aware of the Israeli capital gains tax implications for non-residents.

We strongly recommend consulting with a U.S.-based CPA or tax advisor who is experienced in international tax matters to ensure full compliance. Our firm regularly coordinates with our clients’ tax professionals to ensure that the Israeli side of the transaction is documented to support accurate U.S. tax reporting.

The Israeli Probate Process Still Comes First

It’s important to understand that the wire transfer is the final step in a longer legal process. Before any funds can be released from an Israeli bank, the following must typically be completed:

1. Filing a Probate Petition or Succession Order application with the Israeli Inheritance Registrar or family court.
2. Obtaining the court order — this is the legal document that establishes your right to the inheritance under Israeli law.
3. Presenting the court order to the Israeli bank, along with all required identification and compliance documentation.
4. Completing the bank’s internal compliance review, which can take additional time, especially when heirs reside abroad.
5. Executing the wire transfer to the heir’s bank account.

For a more detailed overview of each stage, see our guide on estate administration in Israel.

If the deceased passed away outside of Israel, the process typically takes four to six months but can take longer depending on the complexity of the case, the number of heirs, and whether any objections are filed. Our firm handles the entire process remotely, and our clients do not need to travel to Israel.

Why an Experienced Israeli Attorney Makes All the Difference

Israeli banks are notoriously difficult to deal with when it comes to releasing inheritance funds to foreign heirs. They are often unresponsive to emails and phone calls, and their compliance departments can create seemingly endless requests for additional documentation. Having an experienced Israeli attorney who understands the banking system, speaks the language, and can physically visit the bank branch when necessary is often the difference between a process that takes months and one that drags on indefinitely.

At Aharoni Law Firm, we have over 20 years of experience handling Israeli inheritance cases for clients in the United States, Canada, the United Kingdom, Europe, and Australia. Our founder, Rahav D. Aharoni, Adv., personally oversees every case. We have successfully transferred inheritance proceeds from every major Israeli bank — including Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi-Tefahot, and others — to clients worldwide.

We understand the unique challenges that arise when a client does not hold a U.S. passport, and we have the practical experience and legal tools to navigate those challenges efficiently.

What We’ve Seen Go Wrong, and How to Avoid It

Over two decades of handling Israeli inheritance cases, we’ve watched heirs lose months — sometimes over a year — to a problem that could have been resolved in weeks with the right guidance. Here are the most common mistakes we see:

Waiting for a passport before starting the probate process. The Israeli probate process takes four to six months on its own. If you delay filing because you’re waiting for passport renewal, you’re stacking timelines instead of running them in parallel. We advise clients to begin the probate petition immediately while we simultaneously resolve the identification issue for the eventual wire transfer.

Assuming the Israeli bank will tell you what they need. They won’t — at least not proactively, and not in a single conversation. Israeli banks are known for requesting documents piecemeal, one at a time, over the course of weeks. Each request resets the compliance clock. An experienced Israeli attorney who has worked with these specific banks’ compliance departments knows how to submit a complete documentation package upfront, avoiding the back-and-forth that delays so many cases.

Trying to handle the bank distribution without a local attorney. We cannot stress this enough: Israeli banks are rarely responsive to emails or phone calls from abroad, particularly from individuals who are not account holders. In many of our cases, the bank distribution phase — where the funds are actually released and wired — takes longer than the entire court probate process. Having someone who can walk into the branch, sit with the compliance officer, and push the file forward is not a luxury. It is a practical necessity.

Not coordinating with a U.S. tax advisor. The IRS does not tax the inheritance itself, but failing to file the required reporting forms (Form 3520, FBAR, Form 8938) can result in penalties that are wildly disproportionate to the amount received. We coordinate with our clients’ CPAs from the start to ensure that the Israeli-side documentation supports clean, accurate U.S. tax reporting.

A Note from Our Founder, Rahav D. Aharoni, Adv.

I was born and raised in Rehovot, Israel. When my father passed away in 2006, I experienced firsthand the emotional weight and bureaucratic complexity of managing a family estate in Israel. That experience shaped how I practice law today — with patience, persistence, and a deep understanding of what families go through during this process.

Over the years, we’ve helped clients whose grandparents purchased land in Israel before the State was even founded, families who discovered dormant bank accounts at Bank Leumi and Hapoalim that had been sitting untouched for decades, and heirs who received a letter from the Israeli government about unclaimed property they never knew existed. Every one of these cases involved navigating bank compliance requirements, identity verification, and international wire transfers — often with clients who did not hold a U.S. passport or faced other documentation challenges.

If you’re reading this article because you’re in a similar situation, I want you to know: this is a solvable problem. We’ve solved it many times, and the path forward is clearer than it may seem right now.

— Rahav D. Aharoni, Adv. Founder, Aharoni Law Firm, Israel Bar Association (Lic. No. 47409, since 2007)

Schedule Your Complimentary Consultation

Every inheritance case has its own facts — the type of asset, the bank involved, the heir’s country of residence, and the identification documents available all affect the strategy. That’s why we offer a complimentary initial consultation, where we can review the specifics of your case, identify potential obstacles before they become delays, and provide a realistic timeline and plan of action.

You don’t need to travel to Israel. You don’t need a U.S. passport to get started. You just need to reach out.

Call us directly:

• U.S. / Canada: (888) 923-0022
• Israel: (972) 3-905-5478

Or fill out the online contact form on our website.

Our offices: Beverly Hills, CA | New York, NY | Aventura, FL | Tel Aviv, Israel

Office hours: Sunday – Thursday, 8:00 AM – 8:00 PM | Friday, 8:00 AM – 3:00 PM Appointments are available upon request.