Estate Executors in Israel: Are they really needed, and who should I choose?
When it comes to estate planning, many English speakers in Israel often assume that appointing an estate executor is an absolute necessity and an integral part of writing their Wills. So much so, that they get stuck trying to decide who to appoint as executor, and delay writing their Wills because of it. However, contrary to popular belief, the Israeli probate process usually does not require an executor. In fact, in Israel, in the vast majority of cases, estates are settled without an executor.
In countries like the United States, an executor (or personal representative) is always appointed to handle the probate process, settle debts, and distribute the estate.
By contrast, in Israel, an executor is only appointed if there is a clear, tangible need for one, such as when there are many heirs who might have trouble cooperating, or when the estate is particularly complex. This requires filing a separate request (in addition to the probate request) and obtaining an order from the Inheritance Registrar or Family Court.
It’s important to realize that even if an executor is named in the Will, the executor does not assume his/her role until an official order is granted. Most probate orders issued in Israel state that “No executor was appointed” (yes, even when the Will names someone).
When is an Executor Needed?
An executor is needed when there are complicating factors. For example, if you have a situation with several distant heirs (possibly living far apart around the world and with little or no direct communication), if there is conflict between the heirs, or if the estate includes a business that requires professional oversight, then appointing an executor may be necessary.
How Do You Settle the Estate Without an Executor?
In most cases, the heirs can handle the probate process themselves. Any heir can file a probate request online, with or without a lawyer. If you choose to hire a lawyer for this, it’s still more cost-effective than having a professional executor. You would typically pay a lawyer a flat fee for filing the probate request, whereas an executor’s fees are a percentage of the value of the entire estate.
Once a probate order is granted (usually within three months of filing the probate request), heirs can then submit the order to the relevant financial institutions or authorities. For example, if there’s real estate involved, the heirs would sign the necessary forms for the “Tabu” to transfer the property. For bank accounts, all heirs would be required to go to the bank and sign the relevant paperwork for the bank to distribute the funds. If any heirs cannot come to the bank in person (for example, if they live abroad), then they would have to sign the documents in the presence of a notary and with an apostille stamp, or at an Israeli consulate.
It’s important to remember that any debts must be paid off before the estate can be distributed.
Additionally, before you rush to distribute the assets, you should consider preparing an estate distribution agreement.
Why is Legal Guidance Recommended for Estate Distribution?
While it’s possible to go through the process without a lawyer, many people find that legal guidance helps avoid mistakes and delays (and takes the burden off their shoulders).
Additionally, lawyers can help heirs consider alternative ways to divide the estate that might be more beneficial from a tax perspective or simply more practical for the inheritors.
Should I Still Name an Executor in My Will?
Even though an executor is often not necessary, it’s still a good idea to name a trusted person in your Will as your preferred executor. Additionally, if your Will is used abroad, having an executor named in the Will can be very helpful.
To summarize, while we do recommend naming the executor of your choice, you should know that in many cases, those provisions in the Will are not needed and are not used. If you don’t know who to choose, don’t let that stop you from preparing your Will. It’s not as crucial as you might have thought.
If you did not name an executor in your Will, your heirs can still choose an agreed-upon person and file a request for an executor to be appointed, if needed.
Who Can Be an Executor?
An executor can be a family member, a close friend, or a professional.
In the past, lawyers who prepared Wills for clients would routinely name themselves as executors in the Wills. While this is no longer very common, there are situations in which choosing your lawyer or another professional can make sense. In many cases, naming a competent family member is sufficient.