With a profound understanding of Israeli inheritance and succession, Aharoni Law Firm adeptly handles all related aspects for clients worldwide. Our erudite team is well-versed in the intricate details of Israeli probate requirements, succession statutes, inheritance taxes (if any), and related estate matters of Israeli jurisprudence.

At Aharoni Law Firm, we understand that each client’s needs are unique. Whether it’s basic needs or complex inheritance cases involving business interests, real estate, or other specialized assets, our cardinal priority is to provide personalized service tailored to you. We are prepared to handle everything for you, ensuring you feel valued and not burdened.

Inheritance Laws in Israel

Inheritance law in Israel is primarily governed by the Succession Law of 1965, which establishes clear rules and procedures for distributing a deceased individual’s estate. Unlike many countries, Israel does not have inheritance, estate, or succession tax, potentially relieving beneficiaries of a significant financial burden.

Despite this, heirs or even sellers who did not inherit properties and who own property in their country may be required to pay a higher capital gains tax on property inherited in Israel regardless of their citizenship or residency. We have an excellent track record of reducing any capital gains tax to a very low bracket.

How Israeli Inheritance Works

Inheritance in Israel is remarkably predictable. According to the intestate succession rules, which are the laws that determine who inherits when a person passes away without a will, established under Israeli Succession law, it occurs either through a legally valid will or if no will exists. Israeli inheritance law determines inheritance based on familial relationships, prioritizing spouses, children, and other close relatives when a person passes away without leaving a valid will.

How Inheritance Works When There Isn’t a Will – Intestate

Israeli inheritance law establishes the order in which relatives inherit when an individual passes away without leaving a valid will. The law prioritizes close family members in the following sequence:

1. Spouse and Children: The surviving spouse inherits half of the real estate, with the remaining half divided equally among the children.
2. Parents and Siblings: If the deceased person has no surviving spouse or descendants, the estate is divided equally between the deceased person’s parents. If the parents are deceased, siblings become subsequent beneficiaries. If the deceased leaves a wife, parents, and no children, the estate is divided equally between the spouse and the parent.
3. Grandparents and Extended Relatives: If the deceased has no immediate family members alive, the estate distribution extends to grandparents or further distant relatives, such as aunts, uncles, or cousins.

When Inheritance Has Restrictions or Special Conditions

Israeli inheritance law recognizes that some inheritances may come with specific restrictions or provisions. These restrictions or special conditions may include:

1. Conditional Inheritances: A will may specify that a beneficiary only receives their inheritance upon meeting certain provisions, such as reaching a particular age, receiving funds, or achieving a specified milestone.
2. Trust Arrangements: Assets may be placed in trust, restricting immediate access and controlling distributions based on criteria set by the deceased.
3. Protected Beneficiaries: Certain beneficiaries, like minors or individuals unable to manage their affairs, may require an appointed trustee or guardian to manage their inherited assets responsibly.

Managing restricted heritage requires careful legal oversight to ensure that the conditions set forth in the will or established by law are appropriately fulfilled.

​​Israeli Inheritance Terms You Should Know

Knowing the inheritance terms in Israel can significantly ease the probate and succession process. While you may already know some of these terms, we would like to ensure everything is explained in the context of inheritance:

• Probate Order (“Tzav Kiyum Tzava”): A legal court order and decree issued by the Israeli court confirming the validity of a deceased person’s will and authorizing the distribution of their assets as stipulated.
• Succession and Administration Order (“Tzav Yerusha”): Issued by an Israeli court when an individual passes away without leaving a valid will. This order specifies the rightful heirs according to Israeli intestate succession law.
• Estate Manager (Executor): A person appointed either through a will or by court order to oversee the probate process, including asset management, payment of debts, and distribution to beneficiaries. The appointment can be renewed every year.
• Heir: An individual legally entitled to inherit part or all of the deceased’s estate, either through a valid will or under intestate succession laws.
• Beneficiary: Any person named explicitly in a will to receive specific assets or property from the deceased person’s estate.
• Intestate Succession: The legal process governing inheritance distribution when an individual passes away without a valid will, distributing assets based on statutory inheritance laws.
• Estate Manager (“Apotropus Ha’yizavon”): A person appointed by the court or named in the deceased person’s will to manage and safeguard estate assets during the probate process.

For any questions regarding inheritance in Israel, reach out directly to Aharoni Law Firm for a free, complimentary consultation.

Israeli Probate Orders and Israeli Estate Administration

When a loved one passes away, their assets and obligations become their estate, meaning everyone leaves an estate. Under Israeli succession law, the estate remains obligated for many contractual arrangements established by the deceased person before death. If your aunt had a contract to sell her car to someone, for instance, the estate would need to turn over the vehicle to the buyer, and the estate would receive the money from the sale.

The law also requires all outstanding debts to be paid before the heirs are entitled to receive distributions from the estate. If they take property too early, they must satisfy their obligations themselves. Assistance from an experienced Israeli inheritance law firm often proves essential to ensure compliance with all laws and avoid personal liability assumptions. If a problem or conflict arises, the team at the Aharoni Law Firm can resolve difficulties before they become too costly.

Fiduciary Duties of an Estate Manager

In many cases, it is necessary to designate an estate manager to oversee the probate process for an estate. This role can be fulfilled by a family member or trusted individual named in the deceased person’s will, or the court can appoint an estate manager on your behalf. Once a manager is appointed, any transactions relating to the estate must be approved by the manager or the probate court.

Individuals enmeshed in an Israeli inheritance concern can benefit from hiring an attorney to take on the role of estate administrator, or they may derive advantages from engaging an attorney to advise the estate manager in the performance of myriad duties. These may include:

• Opening a trust account for the estate,
• Inventorying assets and liabilities,
• Documenting all income and expenses paid by the estate,
• Paying all outstanding debts, if any,
• Taking legal action against anyone who has harmed the estate,
• Distributing assets to heirs and beneficiaries,
• Filing a deposition in court detailing distributions and their value.

Israeli Inheritance Taxes and Other Critical Issues

As mentioned above about the inheritance laws in Israel, taxation remains a potential obstruction to inheritances even though the country does not currently have an estate/death tax, succession tax, or inheritance tax. Many individuals who inherit property in Israel will be subject to taxation in other countries even if they are not citizens.

For instance, individuals who own certain types of property in the U.S. may be required to pay estate tax on property inherited in Israel regardless of their citizenship or residency. Failure to comply with tax laws leads to the incursion of substantial penalties. The team at the Aharoni Law Firm, with its extensive experience in international tax laws, assists clients with connections in countries around the world, ensuring compliance with all applicable tax laws.

Working with Our Israeli Inheritance Attorneys with a Proven Track Record

Israeli inheritance laws, probate procedures, and succession laws can be elementary if you know exactly what to do. To avoid problems that can prevent you from receiving your rightful property or subject you to costly fees and delays, work with a team that understands how Israeli inheritance laws affect those who live abroad.

Contact Aharoni Law Firm for A Free Consultation

The Aharoni Law Firm has indispensable qualifications for managing estate and inheritance issues. Please contact us today for a complimentary consultation to discuss how we can be of service. We have offices in Tel Aviv, Los Angeles, New York and Florida. If you are looking for an Israeli inheritance lawyer, Rahav D. Aharoni, Adv. can help you with the entire process. Complete our form or call us at 888-923-0022 or any other phone number listed below, and we will be happy to answer your specific questions.

In Conclusion:

• Israel does not have estate/death, succession, or inheritance taxes.
• Inheritances may be subject to taxation in other countries, even if the inheritor is not a citizen.
• Individuals inheriting property in the U.S. may be required to pay estate tax on property inherited in Israel, regardless of citizenship or residency.
• Failure to comply with tax laws can result in substantial penalties.
• Aharoni Law Firm has experience in international tax laws and we can assist our clients in complying with all applicable tax laws.