The Inheritance

Inheritance Comes Into Being

When does the inheritance come into being?

When the person owning the property dies.

When Inheritance Passes to Heirs

When does the inheritance pass into the heirs' hands?

The heirs become owners of the deceased's estate immediately upon his/her death, but their rights are only realized when it is divided.

Making Sure Inheritance Does Not Pass By

How can a person , now an adult, whose father died fifteen years ago, and whose grandparents have now both died, be sure that he won't be left out of the inheritance?

The grandchild can check out with the Inheritance Registrar whether an application was filed for an order to distribute any of the estates by law, or according to a will. If any such application/s has/have been made, the grandson can ask to be joined as a party to the proceedings and/or can take initiative and file an application for such an order , if none has been made.

Transformation into Shares

When is the inheritance transformed into shares or parts?

The day the deceased dies, not the day when an order is given concerning the inheritance.

Nature of Inheritance Order

Does an inheritance order create rights of any kind?

No , rather it makes a binding declaration about them, identifying the deceased's heirs and their share of the estate.

Inheriting Money

When does the process of inheritance end in relation to money in the estate?

Only when the money is actually received by the heir/s.

Extent of Estate

Can the extent of the estate be clarified within the framework of obtaining an order to divide it?
No! Ascertaining the size of the estate is a separate process.

Extent of Inheritance Rights

What rights pass to the heirs upon the death of the deceased?

All the rights that the deceased had up to the point he/she died.

Claims Against Estate – Evidence Needed

Is a financial undertaking made in writing by the deceased before his death likely to be binding on the estate after he dies , and what is needed to prove it?

In principle, the answer is yes, a financial undertaking by the deceased during his lifetime is binding on the estate, subject to the necessary evidence being provided.

In December 2004 Tel Aviv Family Court dealt with a case where the deceased had allegedly undertaken to pay his sister a monthly sum for the rest of her life, and even signed a document to this effect. After the brother had died, the sister sued his estate for this, claiming he had made a future gift. She gave testimony that she had received money every month from her brother. The court made use of the Evidence Ordinance (New Version) of 1971 , relating to evidence by one witness with a vested interest.

It held that the sister's failure to provide print outs from the bank showing monthly deposits to support her claim acted against her. The court was not satisfied that the alleged undertaking was still active when the deceased died; it held that evidence indicated that it had been cancelled, but that the sister was trying to get rich at the expense of the deceased's surviving widow..

Estate – Not An Association

Is a person's estate regarded as an association, from a legal point of view?

No! Legally speaking the estate is neither an association, or a quasi-association.

No Inheritance Tax in Israel on Inheritance From USA .

Is tax due in Israel on inheritance received in the United States, where the beneficiary has already paid tax on it?

As a rule there is no tax on inheritance in Israel. Accordngly, where tax has already been paid abroad on inheritance there, there should be no need for additional taxation to be due on it in Israel.

Registration of Real Estate Ownership Unnecessary

Is it necessary to register the heirs' ownership in real estate to guarantee their rights in the property they inherit?

No! As inheritance of real estate either under the law or in a will is not regarded as a real estate transaction according to the Land Law of 1969, there is no need to register the heirs' ownership of real estate they inherited in order to guarantee their rights.

What Estate Property Includes

What does 'estate property' include?

Real estate or immoveable property, and moveable property i.e. chattels, furniture, money/financial rights.

Estate Includes Debts

Are the deceased's debts part of his estate?

Yes! The heirs do not just inherit the deceased's positive property, but also his negative property i.e. debts.

Deceased's Lifetime Gift and Inheritance

What happens when one spouse gave a gift of property registered in his name only to one of his children during his lifetime, and then passed away?

In these circumstances there is a legal presumption that the deceased acted also in accordance with the wishes of the surviving spouse. Unless this presumption is rebutted, the gift is valid, and the property in question is not part of the deceased's estate.

One Heir Keeps Profit From Others

What happens when one of the heirs holds property due to them under an inheritance, and ignores the other heirs' demands to let them share in financial profit derived from it?

They have 7 years in which to bring legal action regarding their rights in the property.

Spouses' Rights Under Property Legislation

What effect does the Spouses' Property Relations' Act of 1973 have on the inheritance rights of the heirs?

According to the act, each spouse is entitled to half of the joint property acquired during the course of their marriage. Upon the deceased's death, this half passes to the surviving spouse, and the inheritance rights of the heirs and the spouse according to law relate to the deceased's half-share of joint property and any property belonging to him, that was personal, and not marital property.

Association Cannot Bequeath Property

Can an association bequeath property?

No! Although under the Inheritance Act of 1965 an association is able to inherit under a will, it cannot bequeath property.

Unborn Child As Heir

Is it possible that part of the inheritance will only fall in place after the deceased dies?

Yes – if a part is to be inherited by an unborn child, as he/she can only inherit after the deceased has died and he/she has been born!

When Heirs Receive Inheritance Share

When does an heir receive his/her share of the inheritance?

As a rule ,after an order to distribute the estate according to law or the deceased's will has been made.

Will Can Determine When Inheritance Received

Is it possible that an heir can only get his share of the inheritance at a particular time set by the deceased?

Yes ! It is possible that the deceased made a will with a condition about when a particular beneficiary would get his/her share e.g. at a certain age, or after marriage.

Heirs Agree On Division Date

Can heirs agree amongst themselves about when the inheritance is to be divided up?

Yes, they can all agree to delay the division, providing that their decision is unanimous, and none of them objects.

Heirs Agree About Dividing Estate

Can the heirs agree to divide up the deceased's estate as they wish?

Yes – providing they all agree on this new division.

Heirs Agree Not to Divide Estate

Can the heirs decide not to divide up the estate?

Yes, providing they all consent to this.

Agreement Re Part of Estate

Can heirs agree that part of the inheritance will not be divided according to law?

Yes – but they must agree unanimously on this.

"Rebel" Heir Withdraws Consent

What happens if after all the heirs agree on how an asset of the estate is to be managed, one of them withdraws his/her consent?

The 'rebel' heir's withdrawal of consent will not turn the clock back at all - the asset will be managed as agreed.

Real Estate Inheritance Process

When does the process of inheritance end in relation to real estate?

Only when the real estate passes into the ownership of the heir/s.

Division of Estate After Debts Paid

When will the estate be divided up amongst the heirs?

Only after debts to creditors have been paid.

Estate With Only One Heir

When will the estate be divided if there is only one heir?

Even if there is only one heir, all debts on the estate must be paid off before the inheritance can be received, after which the division and transfer of the property are made simultaneously.

Payment of Debts Conditions Division

Surely the estate can be divided up once an order authorizing the division according to law or a will is given?

No – the actual division can only take place after estate debts are cleared.

Claim That Property Belongs to Estate

What is the legal situation when an heir claims that a particular piece of property belongs to the estate?

He/she must prove the claim.

Heirs Act Against Creditors

Can the heirs take action against those owning money to the estate?

Yes ! The heirs can take legal action for the recovery of debts owed to the estate.

Heirs Cannot Cancel Deceased's Contracts

Can the heirs cancel contracts made just before the deceased died?

No, the heirs cannot cancel contractual obligations made by the deceased during his lifetime, as the right of cancellation does not pass to them.

Heirs Cannot Cancel Deceased's Gifts

Can the heirs cancel the deceased's decision to give someone a gift?

No, they cannot cancel rational decisions he made during his lifetime.

Heirs Continue Deceased's Law Suits

Can the heirs continue with legal action the deceased started in his lifetime?

Yes, they are entitled to do so.

Debts Between Heirs

Can an heir take money that he claims he is owed to him by another heir from the inheritance money?

In principle, no. The right to "deduct' or "set off" money owed must be proved and even if this is done, the heir still cannot take the law into his/her hands and decide which part of the estate he/she will compensate him/herself from.

Time Limit on Law Suits Between Heirs

Is there a time limit on the right of one heir to sue another?

In principle there is no time limit on this, unless one of the heirs holds a particular property and refuses the others' demands to share the income with them, or to give details of it, in which case they must demand their right before it is too late according to law.

	Amihoud Borochov - Law Office	: 03-5234133, : 050-4848484	borochov@family-laws.co.il
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