Many people worldwide have family ties to Israel. Over the years, substantial property, money, and investments have been left behind by individuals who passed away without their heirs being aware. Whether someone emigrated from Israel decades ago, served in the Israeli military, or maintained financial accounts in the country, their funds may still remain unclaimed. Israeli law does not eliminate these rights, but the process of asserting them, especially for foreign heirs, can be complex.

We will explain in precise detail how a foreign heir can legally claim unclaimed assets in Israel, including bank accounts, real estate, insurance policies, or pension funds that were never distributed or have since gone dormant. Discusses the claim process, what qualifies as unclaimed assets, and what steps foreign heirs must take to begin. It will cover common challenges, required documents, tax implications, and how law firms like Aharoni Law Firm assist heirs throughout the process.

What Counts as Unclaimed Assets in Israel?

Unclaimed assets in Israel are funds or property left by a deceased person that no one has legally claimed or inherited. These assets can include:

• Dormant bank accounts – Accounts that have had no activity for several years
• Pension funds or retirement accounts – With benefits that were never claimed
• Life insurance policies – That were designated for beneficiaries but never paid out
• Real estate or land – That remains in the name of the deceased
• Investment accounts or stocks – Held by brokerage firms or employers
• Money transferred to the Administrator General – Assets held by the government due to a lack of heirs

Many of these assets remain untouched for years because family members either do not know they exist or do not understand how to begin the legal process. Recognizing these rights can be empowering for foreign heirs, encouraging them to take action and claim what is rightfully theirs under Israeli law.

Who Qualifies as a Legal Heir?

In Israel, the legal right to claim an estate or unclaimed assets is based on inheritance law. You can qualify as a legal heir if:

• You are named in the deceased’s will.
• You are a legal heir under Israel’s intestate succession laws if there is no will.
• You can prove a family relationship to the deceased, such as a child, grandchild, sibling, or parent.

It does not matter if you are not a citizen of Israel or if you have never lived there. Foreign heirs have the same legal rights as those living in Israel. Working with an experienced Israeli lawyer at our firm ensures the process is straightforward and manageable, giving you confidence in claiming your inheritance.

Step 1: Identify Whether Unclaimed Assets Exist

Before beginning the inheritance claim process, foreign heirs must determine whether any assets exist. This may sound simple, but it is one of the most challenging steps for many families. A relative may have left Israel decades ago and never mentioned any property, or financial institutions may have lost touch with family members after the person passed away. Fortunately, there are several ways to begin your search:

• Search the Israeli Unclaimed Property Database – The Israeli Ministry of Justice runs a public online database listing dormant bank accounts, pension balances, and other assets transferred to the Administrator General.
• Contact Banks or Financial Institutions – With legal proof of heirship, banks in Israel can be asked to confirm the existence of accounts in the deceased’s name.
• Check with the Israel Land Registry – Known as the Tabu, the registry lists real estate ownership and can show if the property is registered under the deceased.
• Investigate Pension or Insurance Records – If the deceased worked for an employer in Israel or contributed to pension funds, records might still exist.
• Legal representatives in Israel can conduct a deeper search, including archived records or data that is not publicly accessible online. Partnering with experts like Aharoni Law Firm provides peace of mind, knowing you have dedicated support at every step.

Even if the heir does not know the Hebrew spelling of the deceased’s name or ID number, legal professionals may still be able to locate assets through old records, partial information, or official requests.

Step 2: Obtain a Succession Order or Probate Order

Even after unclaimed assets are discovered, no foreign heir can claim property or funds until they obtain an official inheritance order from Israeli authorities. There are two types:

• Succession Order – Used when there is no will
• Probate Order – Used when there is a will that must be validated through the courts

This legal order establishes your right to inherit from the deceased under Israeli law. Without it, no bank, insurance company, pension fund, or government agency will release assets, even if they agree the funds belong to the deceased.

Foreign heirs usually must appoint an Israeli attorney with a power of attorney to file the request. The power of attorney must be signed before a notary public and often requires an apostille stamp. Once submitted, the succession or probate order can take several months to process, especially if heirs live abroad or documents are missing.

Step 3: Gather and Certify Required Documents

To submit a legal claim in Israel, heirs must collect official documents proving both the death of the relative and their relationship to the deceased. Common documents include:

• A certified death certificate (translated to Hebrew if issued abroad)
• Proof of identity for all heirs
• Birth certificate or family registry documents
• Marriage certificate (if spouse is claiming)
• The original will (if one exists)
• Affidavits signed before a notary

All foreign documents must be translated into Hebrew by a certified translator and authenticated with an apostille stamp or an equivalent consular certification. Clarify how language barriers may affect the process and how legal professionals can assist in translation and authentication to prevent delays or rejection of the claim.

Step 4: Submit Formal Claims to Institutions

Once the succession or probate order has been granted and all documents are prepared, foreign heirs can finally file claims to recover the assets. This is done by contacting each institution separately with:

• A copy of the inheritance order
• A certified copy of the heir’s identification
• The institution’s official claim form
• Bank details for fund transfer
• Any institution-specific requirements (e.g., tax documents or declarations)

Each institution has its own timeline and requirements. For example:

• A bank may release funds within weeks, assuming forms are complete
• Real estate transfers may take months due to registration requirements
• Pension funds require additional verification to confirm the benefit amount and eligibility

For foreign heirs living far from Israel, working with a legal representative is almost always necessary to submit forms, follow up with institutions, and have correspondence translated from Hebrew.

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Common Challenges Faced by Foreign Heirs

While foreign heirs have the same inheritance rights as Israeli citizens, the process often presents unique challenges. These difficulties usually arise from unfamiliarity with Israel’s legal system, language barriers, and the logistics of handling estate matters from abroad. Understanding these challenges and preparing to navigate them is crucial for a successful claim.

Language Barriers

All official filings in Israel must be submitted in Hebrew. Even if foreign heirs possess original documents, these documents are typically in English or another language. A certified Hebrew translation is always required for documents like wills, birth certificates, and affidavits. In addition, all communication from the courts or financial institutions will be in Hebrew. This is one of the primary reasons why working with a bilingual lawyer in Israel is invaluable.

Document Certification Requirements

Foreign-issued documents must undergo a specific process to be considered legally valid in Israel. A common mistake made by heirs is submitting uncertified documents or informal translations. To avoid delays:

• Documents must be translated into Hebrew by a certified translator.
• Official documents issued abroad, such as birth or death certificates, must be authenticated with an apostille under the Hague Convention.
• If no apostille option exists, consular certification may be required through an Israeli embassy or consulate.

Failure to follow these requirements can lead to rejection, re-filing delays, and increased legal fees.

Locating Unknown Assets

Foreign heirs often do not know what assets their relative owned in Israel. Some assets may have been forgotten, never disclosed, or lost over time. Common examples include employer-sponsored pension funds, savings accounts opened during military service, or property inherited decades ago and never managed.

Locating these assets requires formal requests to government agencies, banks, insurance companies, or land registries. Lawyers can also submit specialized searches not available to the public or conduct thorough research using records or archived databases.

International Time Zones and Communication Delays

Inheritance proceedings in Israel require regular communication with institutions, court officials, and legal representatives. For heirs located in the United States, Europe, or elsewhere, time zone differences can slow the process. Appointing an attorney in Israel ensures all necessary steps can proceed without requiring late-night or early-morning calls to meet foreign deadlines.

What Happens When the Administrator General holds Assets?

When property or funds remain unclaimed for an extended period, they may be transferred to the Administrator General (Apotropus Klali) of Israel. This governmental body is responsible for managing abandoned assets until a rightful heir claims them. These assets may include:

• Dormant bank accounts or deposits
• Proceeds from insurance or pension funds
• Real estate left unmanaged for decades
• Estate balances submitted by financial institutions due to inactivity

Heirs can still recover these assets by submitting proof of heirship through the standard succession or probate process. However, claims involving the Administrator General often require additional verification and legal steps, since the government must confirm there are no competing heirs and that the documents provided are legally valid.

How Aharoni Law Firm Assists Foreign Heirs

Successfully claiming unclaimed assets in Israel requires navigating legal, administrative, and logistical barriers. Aharoni Law Firm specializes in helping foreign heirs through the entire process, from locating assets to transferring funds abroad. Key services include:

• Locating Assets – Conducting official database searches, reviewing property records, and contacting institutions directly.
• Preparing Documentation – Translating certificates, drafting affidavits, and ensuring legal compliance.
• Filing Succession and Probate Applications – Submitting all requests with the Registrar of Inheritance Affairs or Family Court on your behalf.
• Communicating With Banks and Agencies – Managing correspondence in Hebrew to expedite asset release.
• Resolving Issues With the Administrator General – Including advanced claims or disputed property.
• Assisting With International Transfers – Ensuring funds are sent to heirs securely and in compliance with banking and tax regulations.

With a valid power of attorney, heirs do not need to travel to Israel. The firm handles the entire legal process locally, and coordinates with foreign clients at every step.

Tax Considerations for Foreign Heirs

One of the biggest concerns foreign heirs face is taxation. Israel does not impose an inheritance tax, but heirs may still owe taxes depending on their country of residence or the type of asset received. For example:

• Income Tax – If you inherit rental income or dividends from investments, taxes may apply.
• Capital Gains – Selling inherited property in Israel could trigger capital gains tax.
• U.S. Reporting Requirements – U.S. citizens or residents must report inherited assets from foreign sources in certain circumstances, including by filing IRS Form 3520 or FBAR, depending on the asset’s value and type.

Failing to comply with tax requirements can result in penalties or future legal issues. Aharoni Law Firm often works alongside tax advisors to ensure foreign heirs meet all legal obligations in both Israel and their home countries.

Frequently Asked Questions About Foreign Heirs and Unclaimed Assets in Israel

Do I need to travel to Israel to claim an inheritance?

No. With a properly executed power of attorney, all proceedings can be handled locally by your legal representative in Israel.

What if I do not have all the required documents?

If legal documents, such as birth certificates, are missing, a lawyer can assist with submitting legal affidavits or locating alternative documentation in government records.

Can I claim inheritance if other heirs have already filed?

Yes. As long as you are a legal heir, you can join or submit your claim as part of the inheritance process, even if others have already initiated it.

What if the estate has already been transferred to the state?

You can still recover these funds by proving your heirship and submitting the necessary legal orders. Unclaimed assets held by the state do not expire.

How long does the inheritance process take?

Most claims take several months to process, depending on document availability, court scheduling, and estate complexity.

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If you are a foreign heir searching for unclaimed assets or property in Israel, Aharoni Law Firm can assist you in locating, proving, and recovering your inheritance, no matter where you live. To speak with an attorney experienced in Israeli inheritance law, please call us at 888-923-0022 or fill out the online form to schedule a free consultation with our Founder, Rahav D. Aharoni, Adv.