The death of someone you love is life’s toughest trial. After such a loss, you face all sorts of paperwork, a legal language that you barely understand, and you are not even sure of your rights. The situation becomes even more overwhelming if you have to handle a case of an estate in Israel and you live somewhere else.
At Segal Simchauve and Co., we know that it is not easy to deal with the Israeli legal system. If you are a son or daughter, a husband or wife, or even a remote relative, it is very important to realize what your rights are before anything else.
This guide provides an overview of how to inherit in Israel, the identification of heirs, and the stages of the procedure.
The Basics: The Israeli Inheritance Law of 1965
The Inheritance Law of 1965 regulates inheritance matters in Israel. This law is the “rulebook” that courts and registrars follow. It aims to be just, but at the same time, it can be quite rigid.
Basically, an estate can be distributed in two different ways:
- By Will (Testamentary Inheritance): The deceased made a valid will specifying exactly how the estate is to be distributed.
- By Law (Intestate Inheritance): There is no will. In that case, the state determines the heirs according to the degree of familial relationship.
Key Takeaway: If there’s no will, the law prioritizes immediate family first (spouses and children) before any other relatives.
Who Are the Legal Heirs? (When There Is No Will)
Maybe you are wondering, “Am I a qualified heir?” The law categorizes the heirs into three ‘circles’ of closeness.
1. The First Circle: Spouse and Children
This is the most common scenario.
- The Spouse: Is the one who, as a rule, gets half of the total value of the estate. The cars and the things in the house are also a part of this 50%.
- The Children: They divide between each other the half that is left in common, and that is equally 50% of the estate.
Note: Compared to other Western nations, Israel has a higher fertility rate. The average number of children per woman is about 3. In Israel, properties are often divided among more siblings than in Europe or the US. This makes getting clear legal advice essential.
2. The Second Circle: Parents and Siblings
If the dead person was married and had no kids:
- The husband or wife gets two-thirds (66%) of the estate.
- The rest one-third (33%) is inherited by the parents or brothers and sisters of the deceased.
In the absence of a spouse, the children will get the entire estate. If there are no children, then the parents will inherit everything.
3. The Third Circle: Grandparents
If the deceased had no spouse, children, parents, or siblings, the inheritance goes to the grandparents and their descendants, like uncles, aunts, and cousins.
The “Unwritten” Heir: Common-Law Spouses
Israel is quite forward with its regulations for non-married couples. So, if you are going to inherit from someone, no marriage certificate is required.
If you lived with the deceased as a “common-law spouse” (Yeduim BeTzibur in Hebrew), you might have rights similar to those of a legally married spouse. To establish this relationship, you usually need proof of living together and sharing financial resources.
Couples who cohabit may receive half of the inheritance just like married couples. They have to present evidence of their relationship to the court.
Intestate Succession: Who Gets What?
| Family Situation | Who Inherits? | Distribution |
| Spouse + Children | Spouse & Children | Spouse: 50%
Children: 50% (split equally) |
| Spouse + Parents/Siblings | Spouse & Parents | Spouse: 66%
Parents/Siblings: 33% |
| Spouse Only | Spouse | Spouse: 100% |
| Children Only | Children | Children: 100% (split equally) |
| No Family Found | State of Israel | State: 100% |
How to Inherit in Israel: The Process
Knowing your rights is one thing; actually getting the assets is another. Here is the step-by-step roadmap on how to inherit in Israel.
Step 1: Determine if there is a Will
Check safe deposit boxes, emails, or with the deceased’s lawyer. If you find one, the process changes slightly.
Step 2: File the Application
- If there is a Will: We submit a request for a Probate Order (Tzav Kiyum Tzava). This confirms the will is legit.
- If there is NO Will: We file for an Inheritance Order (Tzav Yerusha). This states who the legal heirs are, as per the law.
Step 3: Publication
There will be a public announcement made by the Registrar of Inheritance as to the opening of the will. In this way, anyone has the opportunity to raise an objection if they consider the will to be counterfeit or unjust.
Step 4: Receive the Order
The Registrar, in the absence of any objections, goes ahead and issues the order. This paper is your “golden key.” You take it to the bank, the Land Registry (Tabu), or investment companies to change the assets to your name.
Key Takeaway: One cannot access a single shekel of a bank account nor sell a property without this formal Order first.
Financial Reality: Is There an Inheritance Tax?
Here is some good news.
Israel currently has NO estate or inheritance tax. (It was abolished in 1981.)
Nevertheless, “no inheritance tax” is not equal to “tax-free.”
- Capital Gains Tax: In case a property is given to you as an inheritance and you choose to sell it, you may have to pay Capital Gains Tax (around 25%) on the gain.
- Foreign Residents: In case you reside in the US or Europe, your country of origin may impose tax on the inheritance you get from Israel.
A professional law firm is indispensable at this point. We assist in setting up the transfer in such a way that the tax burdens are reduced in your country of residence.
When Disputes Arise: Can You Object?
Unfortunately,money is the cause of most family fights. You can challenge an inheritance distribution in court with the following conditions:
- It is your belief that the will was written under “undue influence” or pressure.
- The person who died was mentally ill (for instance, suffered from dementia) at the time of signing the document.
- There is a more recent will.
If you have a will that seems questionable, you need to act quickly to invalidate it. We cover this intricate issue comprehensively in our article: How to revoke an Israeli will safely and legally.
Why You Need an Expert Team
The Israeli judicial system is conducted in Hebrew and is based on strictly defined procedural timeframes. If you make a mistake in your application, your case can be delayed for a long time, even by months.
At Segal Simchauve and Co, we are your local representatives. We handle the formalities, translate languages, and ensure you get your rights. This way, you won’t have to travel back and forth.
Frequently Asked Questions
Can a non-citizen inherit property in Israel?
Yes,definitely. A person is not required to be a citizen in order to inherit in Israel. People who aren’t residents may face different tax rules based on their home countries. They must show a valid passport for identification during the probate process.
Does Israel have an inheritance tax?
Israel does not impose any inheritance or estate tax. Still, beneficiaries must take note of possible capital gains tax if they choose to sell the property that was inherited in the future.
What happens if the deceased left debts?
Before the assets can be given to the heirs, the estate is required to settle any debts. Heirs usually pay debts only up to the value of the estate they inherit. This means you won’t inherit personal debt.
How long does the probate process take?
Generally, a non-contentious procedure is completed within 3 to 6 months. If there are objections or trouble finding the heirs, the process could take longer than a year. In that case, you might need a lawyer.
Can I inherit if I am an adopted child?
Under Israeli law, adopted children have the same inheritance rights as biological children. They are entitled to the estate of their adoptive parents just like any other natural offspring.
Do you have questions about your specific case?
Make sure your inheritance is not a lottery. Get in touch with Segal Simchauve and Co right away. We are the ones who can make it easy and safe for you to pass down your family’s heritage.
