Inheritance and Succession Orders

When someone dies, what happens to their property? The answer depends on whether there was a will, and on the Inheritance Law. This guide explains who inherits and how the process works with the Registrar of Inheritance Affairs.

Disclosure: Educational information only. This is not legal advice. Inheritance law is complex: a lawyer is recommended. Any action you take is your own responsibility.

Who inherits: by law or by will

There are two routes. If the deceased left a will, the property is divided according to it. See wills.

If there is no will, the Inheritance Law applies and sets an order of heirs: first the spouse and children, in shares defined in law, and in their absence parents, siblings and onward.

Division under the law does not always match what the deceased would have wanted, which is precisely why a will matters.

Succession order versus probate order

To actually deal with the estate, whether with banks or the Land Registry, an official document is required:

Succession order (tzav yerusha): where there is no will. It establishes who the heirs are under the law.

Probate order (tzav kiyum tzavaa): where there is a will. It gives the will binding force.

Both are applied for from the same body: the Registrar of Inheritance Affairs.

How to apply for a succession order

The application is submitted to the Registrar of Inheritance Affairs, including online, together with documents such as the death certificate and the heirs' details, and payment of a fee.

The application is published and a period is allowed for objections. If there is no objection, the Registrar issues the order. In complex or contested cases, the matter passes to the Family Court.

Claiming Israeli assets from abroad

For diaspora families the obstacles are usually procedural rather than legal.

Foreign documents generally need authentication. A death certificate or civil document issued abroad will typically require an apostille under the Hague Convention, and often a certified Hebrew translation, before an Israeli institution accepts it.

A local representative is usually necessary. Israeli banks and the Land Registry work in Hebrew and frequently require presence or a properly executed power of attorney. Most heirs abroad appoint an Israeli lawyer.

Locating the assets can be the first task. Where the family cannot identify the accounts, policies or pension products the deceased held, they can be traced, see tracing lost money in Israel.

US persons should note that the absence of Israeli inheritance tax does not displace US estate tax on worldwide assets. The two systems are independent.

Debts of the estate

An estate is distributed after its debts. Heirs are not personally liable beyond the value of what they receive, but the estate must settle its obligations before anything is divided. Where an estate is insolvent a specific procedure applies, and it is worth taking advice before accepting anything.

Inheritance disputes

Inheritances are fertile ground for disputes, between siblings, between a spouse and other heirs, or over the interpretation of a will.

The best way to prevent disputes is a clear will drawn up in advance. Where a dispute already exists, an objection to the order can be filed, and the matter is sometimes decided in court. Legal representation almost always pays for itself here.

And what about tax?

Worth restating: there is no inheritance tax in Israel. No tax is paid simply on receiving an inheritance. However, realising an inherited asset, primarily selling an apartment, may attract betterment tax. See inheritance tax.

Common mistakes

1. Assuming everything resolves itself. An official order is required to deal with an estate.

2. Relying on inheritance under the law instead of a will, which does not always match actual wishes.

3. Entering a dispute without advice: expensive and exhausting.

Summary

Inheritance is a defined process: with a will, you apply for a probate order; without one, a succession order under the law. The best way to prevent disputes is planning ahead with a clear will. See wills, inheritance tax and the family and planning section. We provide the knowledge: the decisions remain yours.