Introduction
When someone passes away, the distribution of their assets according to their last Will requires a legal process known as probate. In Israel, probate involves the official recognition of the Will by the Inheritance Registrar or (in certain cases) the Family Court. This article aims to provide a clear and informative guide on how to probate a Will in Israel, addressing key questions such as the duration of the process, required steps, and the need for legal assistance.
Understanding the Probate Process
Probate is essential for transferring the rights and assets specified in a Will to the designated inheritors. One cannot simply present the Will to a bank or the Land Registry (Tabo) and request the transfer of the estate. They have no way of knowing if the Will is valid or whether it’s the deceased’s last Will. This is why probate is necessary.
Keep in mind that Israel does not recognize foreign probate orders. So, even if the Will was already probated in another country, you would still have to go through the probate process in Israel again. However, the process can often be relatively straightforward and can even be completed within 2-3 months, if all goes smoothly.
Filing the Probate Request
Any inheritor or interested party can initiate the probate process by submitting a request online.
What you need to complete the request
- The original Will
- Date of death and place of death (if the deceased died in Israel, there’s no requirement to submit a death certificate. If the deceased died abroad, the process is a bit more complicated, and we recommend that you consult a lawyer.
- Proof of notification sent to all inheritors. This can either be achieved by submitting a registered mail slip with a copy of the letter sent, or simply by having every inheritor confirm in writing and sign that they are aware of the request being filed, that they have seen a copy of the Will, and that they agree to the probate request.
The online form should be filled out step by step, and relevant documents must be attached.
A fee of 591 shekels (as of 2023) is payable upon submission.
Submitting the Original Will
After submitting the online request, the original Will must be handed to the Inheritance Registrar within seven days. Designated safe boxes are available at the Registrar’s offices to drop off the original will during operating hours. Alternatively, it can be sent by courier or registered mail (although you may not want to take the risk of the Will getting lost along the way).
Tracking the Request
Following the submission of the online request and the original Will, the Registrar’s office opens a file and provides a file number. The progress of the request can be tracked online here. After the file is opened, the request is forwarded to the Administrator General for their response. If the Will does not contain any problematic clauses, the Administrator General will likely have no comments. While waiting for the Administrator General’s response, anybody may come forward and contest the Will within a 14-day window. If no objections are raised and the AG has no comments, a probate order will be issued.
Receiving and Acting Upon the Probate Order
Once the probate order is issued, it is digitally transmitted to all banks and insurance companies, as well as to governmental offices (such as the Transportation Ministry, the Tabo, The Tax Authority, and others). However, the probate order is not automatically registered, but rather further steps are necessary to execute the transfer of rights and assets to the inheritors.
Transferring Rights in the Land Registry (Tabo)
To transfer rights according to the Will in the Land Registry, a request form accompanied by a copy of the probate order must be submitted. A lawyer can submit the request for you online, but if you want to do it yourself, you can submit the documents to the relevant office. Either way, the request form must be signed in the presence of a lawyer. There is a fee of 170 shekels (paid to the Land Registry).
Dealing with Banks
Banks have strict policies regarding the release of funds to inheritors. Typically, all inheritors must physically visit the bank. However, if this is not possible, the bank may accept the signature of the inheritor signed in the presence of a notary with an apostille stamp (if the individual is located abroad).
Considering Additional Factors
Before proceeding with the registration of rights and asset transfers, it is prudent to consider certain factors that may have significant financial implications:
Tax Planning
In cases where the deceased owned multiple real estate properties or if some of the inheritors are not Israeli residents, tax planning can result in substantial savings. While Israel does not impose an inheritance tax, capital gains tax on real estate appreciation (appreciation tax) applies. Engaging in tax planning, such as redistributing assets differently from what the Will specifies through an estate distribution agreement, can optimize tax liabilities. This may involve some inheritors receiving the property while others receive a larger portion of liquid assets.
Efficient Estate Distribution
In many cases, signing an estate distribution agreement is a good idea not just from a tax perspective, but also for the ease of managing the estate. For example, if three children inherit three apartments from their mother in equal shares, then rather than each child owning 1/3 of each property (and being tied to the others for managing the apartment and deciding when to sell), it would instead make more sense that each child would receive 100% of ONE apartment.
For these reasons, it is highly recommended to consult a lawyer or tax advisor before probating a Will (if you already probated the Will but haven’t yet transferred the rights – it’s not too late). Their expertise can help navigate complex legal and tax considerations, ensuring the most favorable and efficient distribution of assets.
Conclusion
Probating a Will in Israel is a necessary process to officially recognize the last Will of the deceased and facilitate the transfer of rights and assets to the inheritors. By understanding the steps involved and considering relevant factors such as tax planning, individuals can ensure a smoother probate process and optimize the distribution of assets. Seeking professional advice is advisable to navigate the legal and financial complexities associated with probate and to make informed decisions. Click here to schedule an introductory consultation with our attorney.