Israel Inheritance tax

Israel Inheritance tax
Israel Inheritance tax

Inheritance tax law varies from country to country. Even though Israel released its inheritance law years ago, there are some technicalities that you need to understand if you own an inherited property in Israel.

 If you are involved in an inherited state, understanding Israel inheritance law from a qualified inheritance lawyer will help resolve the legal issue as soon as possible.

What is the inheritance tax in Israel?

Inheritance tax is charged to someone who inherits property or assets from a deceased family member. While property can be commercial or residential, assets refer to money or wealth. Technically, the inheritance tax in Israel does not exist. Israeli government removed these taxes some years ago. So, you are not liable to pay any inheritance tax directly.

Who has to pay inheritance tax in Israel?

An Israeli resident does not have to pay inheritance tax if he owns assets from a deceased family member. However, if you live in another country, you still have to pay your country’s inheritance tax.

If you inherit a property in Israel but wish to sell it, you would be subject to property sales tax. In addition to that, you would also have to pay inheritance tax to your home country if you decide to transfer the funds back to the bank account in your home country’s bank.

Inheritance laws can be complicated, especially if you are a foreigner. That’s why it is best to seek help from a professional Israel inheritance tax lawyer.

What is the process of claiming inherited assets in Israel?

If you are inheriting funds in a bank account or a property, the first step is to apply for a succession order or probate from the religious court or registrar’s office. It is illegal to claim any wealth or inherited property without getting a probation letter. Any succession order or probation letter from another country is not valid in Israel.

Once you have acquired the probate or succession order, you must report any real estate property as per the stipulations in the probate order.

How do I retrieve assets in Israel if I am a foreigner?

If you are a foreigner but someone has left you assets or real estate property in Israel, the first thing you should do is apply for a succession or probate order in a religious court or the registrar. If the deceased person has left no will but you are claiming through the law of succession in Israel, you need to get the succession order only.

If you are not in Israel and need to claim property, you do not have to be there. Instead of traveling to Israel, you can hire an inheritance tax lawyer and send the necessary documents to him with your verified signature.

However, the inheritance tax lawyer has to have the power of attorney to represent you in the registrar’s office. The signature you will send along the documents will be verified at the Israeli consulate by an apostille or a public notary.

Inheritance lawyers also provide you with a translation of documents in Hebrew.

What documents do I need to claim an inheritance in Israel?

If you want to apply for a probate or succession order in any Israeli religious court, you must have the following documents:

  • Power of attorney
  • Original will if available
  • Death certificate of the deceased person
  • Application of the succession or probate order
  • A legal opinion of your country’s (foreign) law

 Once you have gathered all the documents, all you have to do is request your inheritance tax lawyer to start the legal procedure. If you have any questions about the inheritance tax law, your lawyer would be there to assist you.

Property in Israel

Property in Israel
Property in Israel

Purchasing a property in Israel is considered a long-time investment that starts long before a person receives the key to his new home. Before purchasing real estate, a person has to search for an ideal real estate property, fit all the seller’s needs, agree to the terms, renovate and go through all bureaucratic reasons such as approval of the mortgage. In most cases, you need the professional help of a property lawyer in Israel, especially if you are buying a second-hand apartment or house.

The directing professional who helps you prepare property documents is a real estate lawyer. He provides knowledge, tools, and meditation between both the parties alongside guidance and professional advice.

Are you thinking to purchase a property in Israel? Here is how to choose a property lawyer

The great number of lawyers in Israel open the opportunities for buyers and sellers to choose their preferred lawyer in the field of property. Despite the growing profession of law in the country, not every lawyer is a property lawyer. To become a real estate expert, a lawyer must have accurate yet specific field knowledge.

To become a property lawyer in Israel, you need specialization and professionalization in real estate to assist your clients in the best possible way. Israelis are known to be experts when it comes to shortcuts and savings. Therefore, a property lawyer must be well-versed in all the property laws in Israel.

Each one of us will prefer consulting a family member or a friend to purchase a property so that the process can go ‘smooth’ as planned. As a result, many people hire unprofessional lawyers and set false hopes of purchasing the property easily.

Due to a lack of knowledge about property and tax laws in Israel, the property price blows up and the buyer has to pay a lot more than imagined.

Therefore, it is important to lead a good deal from the start with the help of a professional property attorney. With his assistance, you won’t have to face bureaucratic consequences.

A property attorney takes care of your property interests and puts away all the bureaucratic obstacles while ensuring and checking that the whole process is done following the Israeli property laws.

In addition to that, a property lawyer tries to avoid any situation that might lose you money while purchasing a property.

What steps is a property lawyer in Israel obliged to perform?

Before signing any property deal with the other party, a property lawyer must discuss the risks and advantages with the client while assessing the deal from every angle. He investigates the following factors:

  • Who is the seller at the event of purchasing the property?
  • Who is the contractor?
  • What’s the current status of the property’s rights?
  • Is it possible to build property if the buyer is purchasing land?
  • Does the buyer have all the necessary approvals and orders?
  • What’s the exact and formal description of the real estate property?

Purchasing a second-hand property

Every penny that you save to buy a second-hand property, apartment, or flat comes from the desire to have a roof over your head. You must calculate and assess all the risks with regard to the overall cost of purchasing a second-hand real estate property.

With the help of a property lawyer in Israel, you can improve the certainty and minimize the possible transaction risks. A lawyer in Israel will help you sign a fully-assessed sale contract that will not put you in dangerous situations.

A property lawyer must examine each detail of the contract, such as the deliverance date of key, payment method and the payment dates to ensure you’re getting the property of your dreams.

Obtaining Probate in Israel

Obtaining Probate in Israel
Obtaining Probate in Israel

When a person dies in Israel, the fate of his assets and property are decided through probate or succession order. While drafting a will is a universal process and requires one to write down the shares of each family member (spouse, children, siblings, parents), the inheritance law of Israel applies when one did not leave a will behind. The rules of inheritance in Israel requires the state to pass down property and assets to the deceased’s family members through a probate order.

Inheritance in Israel is governed by Succession law. If the person lived in Israel, then the government is subject to gain jurisdiction over the deceased person’s property and distribute it to the heirs

Inheritance in Israel can happen through probate in 2 ways: by the state or by will (succession or probate order).

In this article, we will focus more on probate order and the key elements circling inheritance law in Israel. Before moving on to the procedure to obtain probate, you need to know that most of the courts inherit the property through probate order.

The fundamental principle of Inheritance in Israel

A person in Israel is free to distribute his property and assets as they wish to. The succession law of Israel is dependent on the deceased person’s will. It means that a valid will overrides all the stipulations of inheritance distribution by the Israeli state. A will is a legal binding document that applies to all the parties involved in inheritance matters.

In Israel, a person is allowed to draft one than one will. However, the latest (last) will, will override the previous will. If the last will is faulty by the inheritance law, then the second last drafted will will be considered.

Therefore, an Israeli resident needs to ensure that the will is carefully drafted and up to date. A will should always be drafted with professional help from an inheritance lawyer. If there are any changes in the will, concerning children, siblings, divorce or marriage, a person must inform his inheritance lawyer in Israel to make necessary changes.

The execution of will through a probate order

Any successor or heir willing to execute a will has to apply for and take a probate order that’s usually granted by a religious court in Israel. The probate order validates the authenticity and originality of the drafted will by a deceased person.

It also validates the will’s content and gives the legal status to the heir as a court judgment. If the will specify some part of all the properties and assets of the deceased person, the heir will only receive the property and assets mentioned in the will.

You can put in a request for the probate order through the registrar’s office. However, you will have to pay a levy to allow the objections to be made. Some people go one step further and publish it in one of the newspapers so that he can defend himself in the future.

What should you include when applying for a probate order?

While filing for a petition, your application must include the following documents:

  • An application requesting for probate order verified by the inheritance lawyer, signed by the submitter and the notary.
  • The original death certificate of the deceased person. If the deceased person was a foreigner, then the heir is required to submit an apostille.
  • The original will and other related documents
  • A proof that you have paid the government levy
  • Notices to other heirs notifying them about the probate order

If you want your deceased loved one’s will to be executed, you must consult a professional inheritance lawyer in Israel. An experienced and well-versed lawyer is familiar with all the inheritance and real estate laws in Israel.