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.