Inheritance Issues Under Israel Law

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It is possible to inherit anything, including property, finances, and assets, yet inheritance taxes are levied on all of these things. In many nations, inheritance tax is levied on assets valued beyond a specific threshold as a means of promoting distributive fairness. It is often taxed as a proportion of its market value.

When assets and capital are prevented from amassing in the hands of a few families, inheritance tax promotes social equality. Additionally, it serves as a significant source of revenue for the state’s general fund. Due to the fact that each country sets its own rules for inheritance taxation, the operation of inheritance tax in Israel will be different from that of inheritance tax in your home country.

Both taxation and the inheritance rules

Both taxation and the inheritance rules that apply to foreigners who leave property in Israel, as well as any limits or recommendations on whether or not a will should be drawn up, are examined in the Global Property Guide.

Israel does not impose any inheritance taxes.

When it comes to inheritance of property in Israel, the courts have jurisdiction. It is the Inheritance Law 5725 (1965) that serves as the primary legal framework for inheritance proceedings in Israel, and it states that Israeli courts have jurisdiction over inheritance cases in the following situations:

  • During his life, the dead lived in Israel, which is where he passed away.
  • Israel is included in the bequest as is real estate.

Whether as devisors or devisees, Israeli citizens and foreigners are treated the same under the law of inheritance in both circumstances, regardless of nationality.

Israeli courts have jurisdiction over any inheritance disputes arising from the death of a person who was domiciled in Israel, even if the inheritance does not involve property located in Israel. Even if no one involved has any connection to Israel, the Israeli courts have jurisdiction over inheritances involving Israeli property.

Inheritance rules from other countries may be applicable, but only if they exclude persons who are not connected to the deceased through bloodline, marriage, or adoption. Learn more about inheritance law and how to handle it by visiting the Maor Levi website  here עורך דין ירושות בנתניה

The Inheritance Law shall apply in all matters regulated by the foreign law of the deceased’s domicile or nationality if the foreign law of the deceased’s domicile or nationality refers to Israeli law. The implementation of a foreign law, on the other hand, is prohibited under the Inheritance Legislation if the foreign law is discriminatory on the basis of race, religion, gender, or nationality. As a further exception, such foreign legislation is not applicable if it offers any legal inheritance rights (other than those granted by way of a final will and testament) to inheritors who are not connected to the deceased through blood, marriage, or adoption.

When an estate includes assets located outside of Israel, the legislation that governs those assets at the time of the decedent’s death is determined by the Inheritance Law. Lex situs (local law of the country where the property is located) governs all inheritance cases, regardless of the type of property involved. The Inheritance Legislation recognizes that if lex situs applies to foreign property, then the lex situs law applies, unless lex situs discriminates on the basis of race, religion, gender, or nationality. As a result, the Inheritance Law is applicable in this situation.