עודכן לאחרונה 01/02/2026
Succession law in Israel – quick answers you need now
The main statute governing inheritance matters in Israel is the Succession Law, 5725-1965. Israeli inheritance law is primarily governed by the Inheritance Law of 1965, which applies to both Jewish and non-Jewish citizens of the country. This comprehensive legislation determines who inherits property in Israel—whether or not there is a valid will in place. Understanding how this law works is essential for anyone with assets in the country or family members who may inherit them.
Israeli law applies to your estate if you were domiciled in Israel at the time of death or if you owned assets here. These assets include bank accounts, shares in Israeli companies, and real estate registered in the Tabu (Land Registry). Even foreign nationals who never lived in Israel but own property here will have those specific assets governed by Israeli succession law. Israel’s inheritance law sets out the governing principles for estate distribution, especially in cases where there is no will.
Here’s something many clients find surprising: as of 1 January 2004, Israel has no inheritance tax. When assets pass to heirs, there is no separate tax charged on the inheritance itself. However, capital gains tax may apply when heirs later sell inherited property, particularly real estate. Foreign residents may be subject to capital gains tax when selling inherited property in Israel. This distinction matters significantly for estate planning purposes.
Our firm, Derri Rifer & Co, focuses exclusively on family and succession law. We routinely represent heirs and testators before the Israeli Family Court, Rabbinical Courts, and the Inheritance Registrar. With over 25 years of experience in this field, we’ve guided countless families through the succession process—from drafting wills to resolving complex disputes. Inheritance and estate management can be a complex process, especially in international or multi-jurisdictional cases.
The rest of this article walks you through everything you need to know: basic rules of who inherits, wills versus intestacy, probate and succession orders, international aspects, and practical tips for protecting your family’s interests under Israeli law.
Legal framework of succession law in Israel
Israeli succession law is codified and largely secular in nature, though it carries historical influences from both Jewish law and comparative legal traditions—particularly Italian civil law, from which early drafters drew inspiration.
The key statutes and regulations governing inheritance include:
- Succession Law, 5725-1965 – The primary legislation establishing rules for wills, intestate succession, and estate administration
- Abolition of inheritance tax (2004) – Amendment to the Tax Ordinance eliminating the estate duty that previously applied
- Procedural rules of the Inheritance Registrar – Regulations governing applications for probate orders and succession orders
The Succession Law applies regardless of religion or nationality. Whether you’re Jewish, Muslim, Christian, or of any other faith, the same statutory rules govern your estate. However, in certain circumstances, religious courts—such as Rabbinical Courts—may exercise parallel jurisdiction over succession matters, particularly when all parties consent or when the matter intersects with religious family law. A religious court is an authorized authority where wills can be made or validated, and such proceedings require official approval to ensure the will’s legitimacy.
Israeli courts prioritize the free will of the property owner above almost all other considerations. You can generally bequeath your assets to whoever you wish, subject only to public policy limitations and specific protections against undue influence or incapacity. Unlike many European countries, Israel has no forced heirship rules requiring mandatory shares for spouses or children.
Case law from the Family Courts and the Supreme Court has shaped the interpretation of complex issues over the decades. Decisions from the early 2000s onward have addressed matters such as undue influence by caregivers, the validity of “heir-after-heir” clauses (where one person inherits but the assets pass to another upon that person’s death), and the treatment of cross-border estates involving multiple jurisdictions.
Israeli law recognizes four types of wills: handwritten wills, witnessed wills, wills in the presence of an authority, and oral wills under exceptional circumstances.
Principles of Inheritance in Israeli Law
Israeli inheritance law is grounded in the principle of freedom of bequest, which means that any person can decide how their property and assets will be distributed after their death, provided they leave a valid will. This freedom, however, is not without boundaries. The Succession Law of 1965 is the cornerstone of inheritance law in Israel, setting out the rules and procedures for the transfer of property, assets, and rights upon a person’s death. Israeli succession law defines the legal framework for inheritance, ensuring that the wishes of the deceased are respected while also safeguarding the rights of legal heirs and other interested parties.
Under Israeli law, a valid will allows individuals to distribute their estate as they see fit, whether to family, friends, or charitable organizations. In the absence of a will, the law prescribes a clear order of succession, ensuring that the estate is divided among heirs according to statutory guidelines. This balance between personal autonomy and legal structure is central to Israeli inheritance law, making it essential for anyone involved in inheritance matters to understand their rights and obligations under the law. Whether you are an heir, executor, or estate administrator, familiarity with Israeli succession law is key to managing the estate efficiently and lawfully.
Jurisdiction and applicable law over Israeli estates
Jurisdiction over succession matters is usually determined by two primary factors: the deceased person’s “center of life” (domicile) and where the assets are physically located.
Israeli Family Courts and the Inheritance Registrar have jurisdiction when:
- The deceased’s last domicile was in Israel
- The deceased owned assets in Israel on the day of death (such as an apartment registered in the Land Registry or an Israeli bank account)
Domicile is assessed based on substance, not just formal criteria. Israeli courts examine the length of stay, family residence, main economic ties, and overall life patterns—not merely passport or citizenship. Supreme Court rulings on “center of life” have established that a person may hold foreign citizenship while still being domiciled in Israel for succession purposes, and vice versa.
When it comes to choice of forum, heirs can generally choose between the Family Court and a Rabbinical Court for inheritance matters. However, once one party seizes a competent forum—sometimes called the “race to the courthouse”—the other parties typically cannot move the case elsewhere. Strategic forum selection can sometimes influence outcomes, particularly in contested matters.
Foreign probate decisions require special attention. If a court in the U.S., UK, France, or Canada has already issued a probate order, that order generally cannot be used directly to transfer Israeli assets. Recognition proceedings in Israel are typically required, often involving notarised and apostilled translations of foreign documents. This applies to everything from transferring ownership of property in Israel to accessing the deceased’s Israeli bank accounts.
Practical implications for different situations:
- Israelis living abroad should clarify where their “center of life” lies and plan accordingly
- Foreign heirs holding assets in Israel need local legal representation to navigate the Israeli probate process
- Dual domicile situations require careful analysis and often benefit from coordinated legal advice in both jurisdictions
Succession by will and succession by law (intestate succession)
Israeli inheritance law recognizes two main paths for estate distribution: succession by will (where a legally valid will exists) and succession by law (intestate succession, when there is no valid will or the will does not cover all assets).
Israeli law grants broad freedom of testation. A person may generally bequeath assets to any individual, organization, or entity—including charitable organizations, friends, or distant relatives—without the restrictions found in many other legal systems. There are no mandatory shares for spouses or children under Israeli succession law.
When a valid will exists, it prevails over the statutory rules. The testator’s wishes serve as the guiding principle for the distribution of assets, except in very narrow circumstances: illegal conditions, obvious public policy violations, or successful challenges proving undue influence or lack of capacity.
In the absence of a will, the Succession Law sets a fixed hierarchy of legal heirs and their shares. Inheriting property in such cases involves a legal process that requires obtaining a succession order from the court, submitting relevant documents, and sometimes legal representation. Courts and heirs have no discretion to deviate from these rules unless all heirs sign a written distribution agreement.
Example 1: Married person with children dies with a will
Rachel, a Tel Aviv resident, passes away in 2024 leaving a will that divides her entire estate equally among her three adult children, explicitly excluding her estranged spouse. Under Israeli law, her will controls, and the children inherit as she directed. The spouse receives nothing from the estate (though other legal claims outside succession law may exist).
Example 2: Married person with children dies without a will
David, also a Tel Aviv resident, dies intestate in 2024, survived by his wife and two children. Under intestate succession rules, his wife receives half the estate plus exclusive rights to household items and the residential apartment. The two children split the remaining half equally, each receiving one-quarter of the total estate value.
Our office frequently drafts wills that coordinate Israeli assets with foreign assets. This prevents conflicts between different legal systems—for example, ensuring that an Israeli will limited to property in Israel doesn’t accidentally revoke a U.S. or European will covering assets there.
It is highly recommended to seek legal advice when drafting a will to ensure compliance with Israeli law.
Order of heirs and shares when there is no will
This section covers intestate succession under the Succession Law, 1965, which applies whenever there is no valid will or when part of the estate is not covered by a will.
The order of inheritance in Israel is strictly defined by law when a person dies intestate. The estate is distributed among heirs in the following order, which establishes a strict legal hierarchy: the deceased’s spouse and descendants are first, followed by parents, siblings, and then grandparents and their descendants. Closer relatives exclude more distant ones entirely:
First: The deceased’s spouse and descendants (children, grandchildren)
Second: Parents of the deceased
Third: Siblings of the deceased and their descendants (nieces, nephews)
Fourth: Grandparents of the deceased and their descendants (uncles, aunts, cousins)
If no legal heirs exist at any level, the estate passes to the State of Israel.
The deceased’s spouse is a primary heir, and the spouse’s share varies significantly depending on who else survives:
- Spouse + children: The surviving spouse receives half the estate, plus full rights to household chattels and the residential apartment. Children divide the other half equally. If there are three children, each child receives one-sixth of the total estate.
- Spouse + parents (no children): The spouse inherits household possessions, movable property, and half the remaining estate. The deceased’s parents split the other half equally—one-quarter each.
- Spouse + siblings (no children or parents): The spouse takes two thirds of the estate. Siblings inherit the remaining one-third, divided equally among them.
- Spouse alone (no children, parents, or siblings): The surviving spouse inherits the entire estate.
If there are no surviving spouse or children, the deceased’s parents inherit the entire estate.
Children—including adopted children—inherit in equal shares. Grandchildren inherit by representation if their parent (who was the deceased’s child) predeceased the deceased person. A child conceived before death but born within 300 days afterward qualifies as an heir.
Example scenarios:
Scenario 1: A widower in Tel Aviv dies in 2024 leaving two adult children and no will. The two children inherit the entire estate in equal shares—50% each.
Scenario 2: An elderly woman without children dies intestate. Her parents are deceased, but she has two living siblings. The siblings inherit the entire estate equally—50% each.
Scenario 3: A man dies leaving a wife, no children, and both parents living. His wife receives household items and half the estate. His father inherits one-quarter, and his mother inherits one-quarter.
Because the rules are inflexible without a written agreement among all heirs, drafting even a simple will is highly recommended. It gives you control over who inherits and in what proportions.
Types of wills recognized in Israel
Israeli law recognizes four formal types of wills under Sections 18–23 of the Succession Law. Each type has strict formal requirements, and failure to meet them can result in partial or complete invalidation.
The last valid will, in chronological order, controls the estate. Previous wills are automatically revoked to the extent they contradict the newer document. This means maintaining clear records of when each will was executed is crucial.
Errors in form—a missing date, absent signatures, invalid witnesses—frequently lead to litigation. Courts may refuse to recognize a will that fails to meet even seemingly minor requirements. Such situations create unnecessary costs, delays, and family conflict.
Our firm prefers to prepare wills “before an authority” (notarial wills) or “in the presence of witnesses” to minimize future challenges and evidentiary disputes. These formats create the strongest documentary record of the testator’s capacity and intent.
Handwritten wills
A handwritten will under Section 19 must be written entirely in the testator’s own handwriting. This includes the full text, the date, and the signature—no exceptions. Printing or typing any portion invalidates this form of will.
Key requirements:
- Entire document must be in the testator’s own handwriting
- Must include the full date (day, month, year)
- Must be signed by the testator
- No witnesses are legally required, but their absence can create evidentiary challenges
The legal risks are significant. Missing dates or unclear handwriting often lead to evidentiary disputes in court. Handwritten wills are particularly vulnerable to challenges alleging forgery, lack of capacity, or undue influence—precisely because there are no independent witnesses to the signing.
This type of will is sometimes used in urgent circumstances or by people who prefer to avoid lawyers. However, it is far less secure against challenges than other forms.
Practical example: An older parent writes a short will at home in 2023, leaving everything to one child. If the handwriting is unclear, the date is incomplete, or other relatives dispute the document’s authenticity, expensive litigation may follow. In such cases, consulting an attorney after the fact—or better yet, creating a new will in proper form—is strongly advisable.
Wills in the presence of witnesses
This is the most common type of will in Israel, regulated by Section 20 of the Succession Law. The will may be typed or handwritten, but must be dated and signed by the testator in the simultaneous presence of two witnesses. Both witnesses sign on the same date.
Key requirements:
- Will must bear a date and the testator’s signature
- Two witnesses must be present when the testator signs
- Both witnesses must sign the document on the same occasion
- Witnesses should be adults with legal capacity
- Witnesses should not be beneficiaries under the will (Section 35 prohibits or limits gifts to witnesses)
Wills are often prepared in Hebrew, but can also be drafted in the testator’s mother tongue—English, Russian, French, or another language. Later certified translations are prepared for use in Israeli proceedings.
Our office ensures proper witnessing through a detailed process: we verify identification of all parties, confirm the testator understands the document, and preserve the original in secure storage. Clients may also deposit their wills with the Inheritance Registrar for safekeeping.
Wills before an authority
A “will before an authority” under Section 22 offers the most robust form of testamentary document. This type can be made orally or in writing before a judge, the Inheritance Registrar, a Rabbinical Court judge, or a notary. The authority records, reads back, and formally confirms the will.
Why this form is preferred:
- The authority certifies the testator’s identity
- The testator’s statement is recorded contemporaneously
- The date is officially documented
- These elements significantly simplify later probate proceedings
Adv. Moti Gertel, as both a notary and an experienced family-law practitioner, frequently drafts and confirms such wills. This is especially valuable for elderly clients, those with significant real estate portfolios, or anyone anticipating potential challenges from disappointed relatives.
The procedural flow:
The testator schedules an appointment with the notary. At the meeting, the notary verifies the testator’s identity through official documents. The testator states their wishes, which the notary records in formal language. The notary reads the will aloud to the testator, who confirms it reflects their intentions. The testator and notary both sign, and the notary adds their official confirmation and seal.
Oral wills in exceptional circumstances
Oral wills—known in Hebrew as “צוואת שכיב מרע”—are permitted only where the testator faces imminent death or comparable emergency circumstances. These are governed by Section 23 of the Succession Law.
Requirements for validity:
- The testator must be in immediate danger of death
- The testator declares last wishes before two witnesses who understand the testator’s language
- The witnesses must immediately memorialize the declaration in writing
- Both witnesses must sign the written record
- The document must be filed with the Inheritance Registrar without delay
Here’s a critical limitation: the oral will becomes void if 30 days pass after the circumstances of danger have ended and the testator is still alive. Unless the testator executes a new formal will, the oral declaration loses all legal effect.
Courts interpret this exception narrowly. Allegations that someone made oral statements expressing testamentary intentions rarely succeed without strict compliance with all requirements.
As a practical matter, our firm recommends converting any oral declarations into a formal written will as soon as circumstances permit. If a client survives a medical emergency, updating their testamentary documents should be a priority.
Updating, revoking, and challenging wills
Wills must reflect the testator’s current wishes and family reality. Life changes constantly, and documents that made sense years ago may no longer serve your interests or intentions.
Events that should trigger a review of your will:
- Marriage or divorce
- Entering a new long-term relationship (including common-law partnership)
- Birth or adoption of children or grandchildren
- Death of a named beneficiary or executor
- Acquisition or sale of significant assets (such as purchasing a new apartment in 2022)
- Relocation abroad or return to Israel
- Significant changes in family relationships
A later will automatically revokes earlier inconsistent provisions. However, for clarity and to prevent disputes, it is usually recommended to include an explicit revocation clause stating: “I hereby revoke all previous wills and testamentary documents.”
Common grounds for challenging wills in Israeli courts:
- Lack of capacity: The testator did not understand the nature and consequences of the will at the time of signing
- Undue influence: Someone—often a caregiver, new partner, or one child—pressured the testator into making provisions they would not otherwise have made
- Fraud or forgery: The document was altered, fabricated, or obtained through deception
- Failure to meet formal requirements: Missing signatures, undated documents, improper witnessing
In will contests, courts examine extensive evidentiary material: medical records documenting the testator’s mental state, contemporaneous correspondence, witness testimony about the testator’s statements and behavior, and expert handwriting opinions when forgery is alleged.
Adv. Gertel has extensive litigation experience in Family Courts and Rabbinical Courts, representing both sides—heirs seeking to enforce a will and relatives challenging it. This experience on both sides of the courtroom informs our will drafting, helping us create documents that withstand attacks and clearly express the testator’s wishes.
Probate orders and succession orders in Israel
No bank, Land Registry office, or company registrar in Israel will transfer assets based solely on a death certificate. A formal court order—either a succession order or probate order—is required before any institution will recognize heirs and allow them to access or transfer the deceased’s assets. A court order is a judicial decision that determines inheritance rights and estate distribution, and can only be amended or nullified by a court of law.
Two types of orders exist:
| Order Type | Hebrew Term | When Required |
|---|---|---|
| Probate Order | צו קיום צוואה (Tzav Kiyum Tzava) | When there is a will to be confirmed |
| Succession Order | צו ירושה (Tzav Yerusha) | When there is no will (intestate succession) |
| A probate order confirms the validity of a specific will and authorizes distribution according to its terms. A succession order determines legal heirs under the statutory rules when no will exists. |
The Inheritance Registrar is responsible for registering the death, examining wills, and issuing inheritance or probate orders.
The application process:
- Filing: Applications are submitted to the Inheritance Registrar (Rasham HaYerushot), typically through electronic filing. The petition for a succession decree must be accompanied by many documents, and much of the required paperwork may now be E-filed.
- Fee payment: State fees must be paid at the time of filing
- Publication: Notice of the application is published to allow potential objectors to come forward
- Waiting period: A set time frame (usually 45 days) passes to allow objections
- Issuance: If no objections are filed, the Registrar issues the order; if objections arise, the matter transfers to the Family Court for adjudication
Core documents usually required:
- Original death certificate
- Copy of the will (if applicable)
- Notices to all potential heirs
- Affidavits of the applicant
- Powers of attorney (especially for foreign heirs represented by Israeli counsel)
- Certified translations and apostilles for any foreign documents
Digital probate orders are now issued electronically and accepted by banks, the Land Registry, and other institutions as original documents. This has streamlined the process considerably.
Time frames vary significantly:
- Straightforward, uncontested cases can conclude within a few months
- Contested proceedings—where heirs dispute the will’s validity or each other’s shares—may last significantly longer, sometimes years
In such a case, for example, if an estate is initially distributed under a succession order but a valid will is later discovered, the court may amend or nullify the original court order to reflect the new circumstances.
Heir-After-Heir Rule in Israeli Succession
The heir-after-heir rule is a unique feature of Israeli law that allows a testator to determine not only who will inherit their property immediately after their death, but also who will inherit it in the next generation. This provision, often referred to as the “heir-after-heir” clause, is commonly used by parents who wish to ensure that their estate ultimately benefits their children or grandchildren, rather than passing to a spouse’s new partner or unrelated parties in the event of remarriage or subsequent death.
By including an heir-after-heir clause in a will, the testator can specify that, for example, their spouse will inherit the estate first, but upon the spouse’s death, the property will pass to their children. This approach provides greater control over the long-term distribution of assets and helps prevent unintended inheritance outcomes. Drafting such a clause requires careful legal attention to ensure it is enforceable and reflects the testator’s true intentions. Consulting with an experienced Israeli law firm is highly recommended to ensure that the will is properly structured and that the heir-after-heir provision is legally valid under Israeli law.
Estate administration, executors, and distribution agreements
An executor (“menahel ezavon”) is a person named in the will or appointed by the court to manage the deceased’s assets, pay outstanding debts, and distribute assets bequeathed to heirs. The actual administration of the estate is typically carried out by an executor named in the will or an administrator appointed by the Inheritance Registrar in the case of intestacy. The executor is responsible for managing the deceased’s assets, paying debts and taxes, and distributing the remaining property to the heirs. Dependents may claim maintenance from the estate if they prove financial dependency on the deceased.
In many simple estates, no executor is formally appointed. The heirs act jointly based on the probate order or inheritance order, but they remain responsible for paying debts before taking any distribution. Creditors can pursue claims against the Israeli estate, and heirs who distribute assets without settling debts may face personal liability.
Typical executor duties include:
- Locating all assets and liabilities of the deceased
- Preserving property during the administration period
- Dealing with banks, insurance companies, and other financial institutions
- Selling or transferring real estate as directed by the will
- Filing reports with the court if required
- Executing any “heir-after-heir” or conditional provisions in the will
- Distributing remaining assets to beneficiaries
When considering the transfer of assets, joint ownership is an important factor. Unlike some jurisdictions where the right of survivorship automatically passes joint ownership interests to surviving owners, under Israeli succession law, joint ownership does not automatically transfer to the surviving co-owner. Proper estate planning is essential to address joint ownership arrangements and ensure the intended distribution of assets.
Israeli law permits heirs to sign a distribution agreement (“heskem haluka”) that changes the allocation of specific assets between them. This flexibility allows practical solutions that the will or intestacy rules might not contemplate—as long as all heirs agree in writing and the agreement complies with legal requirements.
Common distribution agreement scenarios:
- One heir receives the apartment; others receive cash or other assets of equivalent value
- Siblings who inherit property together agree to sell and split proceeds according to an agreed formula
- An heir renounces their rights so that an elderly parent or sibling can remain in the family home
- Heirs exchange assets across jurisdictions (one takes Israeli property, another takes foreign assets)
Our office frequently drafts these agreements and submits them for court approval when required. A properly structured agreement is enforceable and minimizes future disputes among family members.
Obligations on the Estate: Debts and Liabilities
Before any assets can be distributed to heirs, Israeli law requires that all outstanding debts and liabilities of the deceased be settled. This includes not only obvious debts like loans and credit card balances, but also unpaid taxes, utility bills, and any other financial obligations. The executor or estate administrator is responsible for identifying and paying these debts from the estate’s assets before any inheritance is distributed.
One important aspect of estate management in Israel is the potential for capital gains tax when inherited property is sold. The executor must be aware of the tax implications and ensure compliance with all relevant tax laws to avoid future legal or financial complications. The Israeli family court has jurisdiction over disputes related to estate management, probate, and intestate succession, and can intervene if there are disagreements among heirs or questions about outstanding debts.
Proper estate management is essential to protect the interests of all heirs and to ensure that the estate is distributed according to law. Heirs should be aware that they may be personally liable if assets are distributed before all debts are paid, making it crucial to follow the correct legal procedures and seek professional advice when necessary.
Family Court Proceedings in Succession Matters
Navigating succession matters in Israel often involves proceedings before the Israeli family court, especially when applying for a probate order or inheritance order. These court orders are essential for confirming the validity of a will or determining the legal heirs and their shares when there is no valid will. The family court has jurisdiction to oversee the entire process, from verifying the authenticity of wills to resolving disputes among heirs and appointing administrators or executors when needed.
In cases of intestate succession, the court applies statutory rules to establish the order of heirs and the distribution of the estate. When a valid will exists, the court ensures that the testator’s wishes are respected, provided the will meets all legal requirements. The process can be complex, particularly if there are challenges to the will, disputes over assets, or questions about the proper application of inheritance law.
Given the potential for complications and the importance of protecting the rights of all parties, it is advisable to consult with an experienced Israeli law firm when dealing with family court proceedings in succession matters. Professional guidance can help navigate the legal process, ensure compliance with all rules and jurisdictional requirements, and achieve a fair and lawful distribution of the estate.
International and cross-border aspects of Israeli succession
For foreign readers—olim (immigrants), international investors, heirs living abroad—cross-border estates raise significant coordination challenges between Israeli succession law and foreign legal systems. Managing such estates is often a complex process, especially when multiple jurisdictions and legal systems are involved.
Israeli courts generally recognize foreign wills that meet the formal requirements of either:
- The place where the will was made
- The testator’s nationality at the time of execution
- The testator’s domicile at that time
Recognition requires that the will not contradict Israeli public policy. In practice, most straightforward foreign wills are accepted.
Practical challenges for cross-border estates:
- Foreign wills in English or other languages must usually be translated into Hebrew by a certified translator
- Translations often require notarization
- Foreign probate orders typically need apostille certification or consular legalization before Israeli institutions will accept them
- Coordinating with foreign executors or courts can be time-consuming
- Failure to have a specific “longevity clause” can result in banks freezing joint accounts after a death
Although Israel has no inheritance tax since 2004, foreign tax regimes may impose estate or inheritance taxes on worldwide assets or on assets passing to residents of that country. U.S. citizens and residents, for example, face potential estate tax exposure regardless of where assets are located. Careful planning is essential to avoid double taxation or unexpected tax burdens.
Under Israeli succession law, estate assets are transferred to heirs upon the individual’s death or her death, following the legal process for estate distribution.
Best practice for multi-jurisdictional estates:
Prepare one will limited to Israeli assets and a separate will dealing with assets in the country of residence. Both wills should be professionally coordinated to avoid accidental revocation or conflicts. A U.S. will that revokes “all prior wills” could inadvertently void an earlier Israeli will if not drafted carefully.
Our firm regularly assists non-residents who inherit apartments, bank accounts, or company shares in Israel. We guide foreign heirs through probate, Land Registry registration, and tax questions—often managing the entire process remotely through powers of attorney and digital filings.
Tax considerations in Israeli succession
Israel abolished inheritance tax as of 1 January 2004. Estates are not charged a separate inheritance tax when passing to heirs. This makes Israel more favorable than many jurisdictions for wealth transfer.
However, other tax laws do apply:
Capital gains tax (Mas Shevach): When heirs sell inherited real estate, capital gains tax applies to the difference between the sale price and the “cost basis.” For inherited property, the cost basis is generally the deceased’s original purchase price, plus indexation and permitted improvement expenses.
This can create significant tax exposure for long-held properties. An apartment purchased in the 1980s for a modest sum may trigger substantial capital gains when sold decades later at current market values.
Purchase tax (Mas Rechisha): In some cases, intra-family transfers after inheritance may trigger purchase tax, depending on the structure of the transaction.
Exemptions and reliefs: Various exemptions exist under the Real Estate Taxation Law for inherited residential apartments. However, these rules are complex and change periodically. Qualifying for an exemption often requires meeting specific conditions about the property type, the heir’s other holdings, and timing.
For foreign heirs: You must also consider your home-country tax rules. U.S. citizens may owe U.S. taxes on foreign inheritances or on gains from selling foreign property. UK, Canadian, and EU
Derri Rifer & Co Law Office: Experts in Succession Law in Israel
Derri Rifer & Co is a law firm specializing in family and succession law in Israel. They have over 25 years of experience representing heirs and testators before the Israeli Family Court, Rabbinical Courts, and the Inheritance Registrar. The firm provides guidance on succession law in Israel, including drafting wills, navigating probate and inheritance orders, and resolving complex disputes related to inheritance and estate management. If you need legal assistance with inheritance matters in Israel, Derri Rifer & Co is a knowledgeable and experienced option to consider.
