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Inheriting an Israeli Apartment From a Foreign Resident

Q: Do the heirs need to come to Israel?

Usually not. An Israeli lawyer can file the application and handle registration under powers of attorney, with the heirs signing documents before a notary or at an Israeli consulate.

Q: How long does an Israeli succession order take?

It depends on whether the file is simple, whether all heirs consent and whether it is sent to the Family Court. Ask your lawyer for a realistic estimate for your case; there is no fixed statutory timetable.

Q: Can a rabbinical court handle the estate?

The Succession Law allows a rabbinical court to issue orders only if all the interested parties consent to its jurisdiction. Otherwise the Registrar of Inheritance Affairs and the Family Court are the route.

Inheritance documents and keys to an apartment in Israel

When the owner of an Israeli apartment dies while living abroad, the apartment does not transfer to the heirs automatically, and a foreign probate document on its own is not enough to change the Land Registry. The heirs need an Israeli order under the Succession Law 5725-1965, either a succession order where there is no will or a probate order where there is one, and then a registration at the Land Registry under the Land Law 5729-1969. This page explains who inherits in the absence of a will, how the Israeli procedure runs for a foreign estate, and the tax points to watch.

Who inherits without a will

The Succession Law sets the default order of inheritance when there is no valid will. In outline, the estate is shared between the surviving spouse and the deceased's relatives in a fixed order: children and their descendants first, then parents and their descendants, then grandparents and their descendants. The spouse's share depends on which relatives survive, and the spouse has specific rights in the shared home and its contents. These rules can produce a different result from the one the family expects, especially in blended families, which is why most foreign owners of Israeli property are advised to make a will that covers the Israeli assets.

Which country's law applies

The Succession Law contains rules of private international law. As a starting point, the inheritance of a person is governed by the law of the country where the deceased was domiciled at death, with exceptions and reference-back rules that can bring Israeli law in. Israeli real estate is therefore often, but not always, governed by foreign law as to who inherits, while the procedure for transferring it is always Israeli. This is a technical area; an Israeli lawyer will need the facts about the deceased's domicile and any will before advising.

Wills made abroad

A will made abroad can be given effect in Israel. The Succession Law recognises a will that is valid under the law of the place where it was made, the law of the deceased's domicile or nationality, or Israeli law. The original will, or a certified copy, with a translation into Hebrew, is submitted with the probate application. A foreign probate or grant can be used as evidence but the Israeli Registrar still issues its own order. If a will deals only with assets abroad and is silent on the Israeli apartment, the Israeli apartment may pass under the intestacy rules, so check that the will's wording actually covers it.

The Israeli procedure

Application: the heirs or the executor apply to the Registrar of Inheritance Affairs at the Ministry of Justice for a succession order or a probate order. Where the deceased was not an Israeli resident, the application is usually filed through an Israeli lawyer.
Documents: death certificate with apostille and translation, identification of the heirs, the will if any, and signed notices to all heirs and, for a will, to the other potential heirs under the law.
Notice: the application is published and the Administrator General's office reviews it; a file involving a foreign resident may be transferred to the Family Court for decision.
Objections: any interested party may object within the period set by law, which turns the matter into litigation before the Family Court.
Order: once issued, the order is the document that proves who the heirs are and in what shares.
Registration: the heirs then register the apartment in their names at the Land Registry, with the order, identification and the tax authority's confirmation.

Tax on inheritance and on a later sale

Israel does not currently levy an estate or inheritance tax. Under the Real Estate Taxation Law 5723-1963, a transfer of real estate by inheritance is not treated as a sale, so no land appreciation tax or purchase tax arises on the transfer to the heirs; the heirs must still report the transfer and obtain the tax authority's confirmation for registration. When the heirs later sell, the law contains rules on the cost base and acquisition date they inherit from the deceased and on whether the exemptions for a residential apartment can apply. Heirs who are foreign residents should ask about that before deciding whether to keep or sell. The home country may have its own estate or inheritance tax on the worldwide estate; coordinate both sides.

Planning while the owner is alive

Make a will that expressly covers the Israeli apartment, drafted or reviewed by an Israeli lawyer so it is valid under the Succession Law.
Keep the Land Registry entry up to date, including the owner's current name and identification number.
Store the purchase documents, since the heirs will need the original cost and date for a future sale.
Consider whether joint ownership between spouses or a different holding structure fits the family, with advice on the tax effect.
Tell at least one heir where the documents are and who the Israeli lawyer is.

Common mistakes

Assuming a foreign probate grant can be filed directly at the Land Registry.
Leaving the Israeli apartment out of the will, so it falls under intestacy rules the family did not intend.
Not notifying all legal heirs, which delays or invalidates the application.
Selling the apartment before the heirs are registered as owners.
Forgetting the home-country estate tax on an asset in Israel.

FAQ

Do the heirs need to come to Israel?