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Gila and her husband have lived in Israel for more than four decades. Suddenly and unexpectedly, Gila recently lost her husband. Her husband did not execute a will before he died.

Gila has enjoyed the benefit of overwhelming support from her six adult children who were able to help her clarify what she had to do where, to free up her bank accounts, reinstall their pension payments (her only source of income in their retirement years) and to clear up many more inconveniences to be able to move on with her life – at least in some respects.

First, fortunately Gila reports that the Hevra Kadisha was very helpful and walked her and her family through the burial and Shiva process step by step.

Gila did not have immediate access to her regular bank account though she had to cover several expenditures for the funeral and burial. She used savings to pay, though the funds in her checking account would have covered them.

Gila received the death certificate around thirty days after her husband died, which is typical. As you will read below, this means that the probate process (distributing the Estate) was delayed for that time.

Second, because her husband had never signed a will, Gila and her children, under Israel’s Inheritance Law, inherited everything together in varying shares. Therefore, the children agreed to, and in fact signed the necessary documentation to disclaim their rights to their father’s car and to his half of the apartment that Gila and her husband had owned. This helped Gila’s probate process proceed because it enabled her to inherit these assets outright entirely rather than having to deal with other heirs who became owners. Such a smooth process is not always the case, and the exact reason that so many attorneys recommend executing an Israeli will.

Many of the difficulties that Gila encountered could have been avoided by some simple planning. But we shall start with some basics:

What is an Estate?

An Estate includes all assets (and debts) that a family has accumulated during its lifetime. This includes real estate, automobiles, businesses, artwork, investments, accounts, furniture, etc. However, Israeli life insurance proceeds, provident funds (kupot gemel) and pension funds are not considered, by law, part of the estate. They pass directly to the beneficiaries named without going through the probate process. 

Recently Widowed - What do I do First?

Living wills (Tzava’ah Mehachayim), advance medical directives, medical powers of attorney and any other power of attorney cease to be valid upon death. The will, or if there is no will, then the Succession Law takes over.

A death certificate is obtained by application to the Ministry of the Interior (Misrad HaP’nim),with basic identifying information.

But I Need to Access Our Money to Pay for the ___________!

If your spouse was the only person named on a bank account, you will not be able to access the funds in that account until the Succession or Probate Order is issued. This can take a few months. Therefore, it is important to plan ahead. A clause on the account called Lengthening Days (Arichut Yamim) can help.

Heirs may be entitled to a stipend either periodically or in a lump sum from the Estate. A request must be filed with the court to request such funds.

There is a Will

The law requires you to submit any original will that you have in your possession to the Inheritance Registrar once you learn of someone’s death. Failure to do so is punishable by imprisonment!

The latest will is the valid one, because a will may always be changed by the person making it, as long as they maintain the mental capacity to be able to do so. A simple form of a will is available online from the rabbinical court.

Upon receipt of a will or the memorandum of an oral will, the Inheritance Registrar notifies all of the beneficiaries of the existence of the will.

A probate order is issued if there is a will. It is the only way to implement the terms of the will and distribute the family’s assets to those named in it.

There is No Will

If you choose not to prepare a will (several methods are permitted under Israeli law), you choose to have your property pass according to Israel’s Inheritance Law.

A Succession Order is issued if there is no will, which specifies the heirs according to the Inheritance Law. It names the heirs and their share of the estate. The rest of the probate process is identical to what happens when you had a will.

Planning – Have the ‘Talk’

Death is a hard topic to discuss and consider. None of us wishes to consider our own mortality, let alone that of our loved ones. But it is important to push ourselves to our limits and plan the inheritance we wish to leave so as to save our loved ones pain, financial hard times and unnecessary fees that reduce the estate’s assets.

Without a will, Israel’s Succession Law states that if a person was married (or in a common-law marriage) at the time of their death, one-half of the assets in the estate will go to the spouse and the other half is split equally among the couple’s children. It becomes more complex if this is a second marriage, or if there were no living children.

Therefore, have the ‘talk’ with your family members – present your estate plan, your dreams for the family’s wealth, your wishes, with them. Tell them you have given these decisions much thought and advise them of your final decisions, such as who will be your executor. You are, of course, not required to explain your decisions. These talks avoid litigation and family squabbles.

To Appoint an Executor or Not to Appoint an Executor?

An executor (or administrator) is not necessarily appointed in Israel to administer the estate, rather in the large majority of estates, the probate process is straightforward:

1. Request for a Probate or Succession Order filed with the Inheritance Registrar.
2. The request is transferred to the Public Trustee (Apotropous) for approval.
3. A Probate or Succession Order is provided to the heirs.

The heirs may reach an agreement together with the executor as to distribution.

When an executor is appointed the probate process described above is prolonged and each additional filing entails a separate fee:

• An inventory must list all of the estate’s assets and debts.
• After requesting that creditors notify the estate of any debts owed, the estate’s debts must be paid.
• An accounting is filed listing all income received and expenses incurred by the estate.
• The heirs and executor each agree as to distribution of the estate’s assets or they pass according to the will’s terms. If no agreement is reached and the will does not address all assets, the executor presents a recommendation as to distribution to the court.

An executor must obtain the approval of the court to transact (sell, rent, mortgage, etc.) in property held by the estate. The Law is essentially encouraging the public not to appoint an Executor, and to smooth the probate process as much as possible through family agreements.

Rabbinical Court & Jewish Law

One can file a request for an Order with the rabbinical court instead of with the Inheritance Registrar. All persons who have an interest in the estate must sign that that they agree to file in this court.

The rabbinical court processes the estate according to the Inheritance Law that is set forth in the Torah (i.e. only males inherit, the oldest son receives two shares of the estate, etc.). Fortunately there are several ways to ensure that other family members inherit than those set forth in the Torah, and stay within Halacha (Jewish Law) should this be important to you. Documents other than a will can ensure this through shrewd planning with the guidance of attorneys throughout the country who are well versed in this field.

Ties Abroad

Obtaining a probate order abroad is insufficient to effect probate in Israel and vice versa. This means that the will must be filed both in Israel and abroad if assets are located in several countries.

If a resident of Israel dies while in another country, the Ministry of Interior will issue a document instead of a death certificate. A will prepared abroad can be filed for probate here in Israel. A translation and a legal opinion as to the validity of the will may be required. A probate process abroad can be completely avoided through estate planning particular to that country. This enables your heirs to access the family’s wealth within days, reduce fees, taxes and bureaucracy.

Survivor benefits may have been accumulated abroad, so inquire as to eligibility. For example, Social Security benefits in the U.S. may be available to a surviving spouse. 

There is no Israeli estate tax, but another country’s estate tax may apply. In addition, Israeli income and capital gains taxes may apply, as well as those of other countries as well. Therefore, it is best to consult an Israeli accountant as well as accountants practicing for or in the countries of which the deceased held citizenship.

Tip of the Iceberg 

From the detail of this article and its predecessor in the last issue of the ESRA Magazine, II 156, you can readily conclude that there are as many scenarios and complexities surrounding the probate process as there are families. Therefore, if you are dealing with a particular fact pattern that was not addressed in this series, do not despair. You are not alone and need not struggle with bureaucracy alone. Find a competent professional to work with. For referrals or inquiries please do not hesitate to contact the authors.

This article is for informational purposes only and is not a substitute for specific advice, legal or financial, based on individual consultation.