Wills in Israel: What families living abroad need to know

Many families with assets in Israel assume that a will drafted in their home country covers all their property, but Israeli succession law presents specific challenges. Under the Succession Law of 1965, only four forms of will are recognized: handwritten, witnessed by two people, made before an authority (judge, registrar, or notary), or an oral will made in the face of death. Documents falling outside these forms risk invalidation. Notably, any gift to a person who drafted or witnessed the will—or their spouse—is void. To transfer assets, a probate order from the Registrar of Inheritance Affairs is mandatory; without it, property cannot be sold or mortgaged. Israeli courts have jurisdiction over assets located in Israel, and real estate always devolves under Israeli law, regardless of the deceased's residence. This can lead to an estate being split between two legal systems. Legal experts recommend drafting a separate Israeli will for local assets, coordinated with the foreign will to avoid conflicts. While Israel has not levied inheritance tax since 1981, capital gains tax applies to the sale of inherited real estate, calculated from the date of the original purchase rather than the date of death.