The property of the deceased individual is called. The law of succession governs the ownership of a person in Israel after his departure. Ownership includes property at the time of death, and any rights, procedures and obligations. The estate and heirs of the estate may not exempt themselves from any acts performed by the deceased before his death. For example, if a woman sold her car to another person before her death, the property is entitled to an agreed compensation, but may not withdraw from the sale.
The legacy of the deceased person in Israel is fulfilled according to the will of the person (if there is a will), after the issuance of an evidentiary order, or in accordance with the disposition provisions of the Succession Law of Israel (if there is no will or it is found to be invalid), after the issuance of the inheritance / wills order . In many cases, the estate is distributed, and in some cases the estate manager is required. This procedure is common when there are debts attached to the estate or when objections are made to the commandment or inheritance.
Issues related to inheritance and real estate distribution are complex, important and sensitive. The distribution of a property in Israel after a guardianship order, especially when it is large or when it is disputed or accompanied by debts, will significantly affect the heirs, both financially and emotionally. For this reason it is recommended to contact an Israeli law firm specializing in wills, inheritance and property management. A skilled lawyer will help reduce the difficult processes of managing and distributing the estate in a fair, impartial and responsible manner. Seek professional legal advice is doubling when a real estate manager asks.
The estate manager will collect all the assets of the deceased (the estate), repay any outstanding debts attached to the estate, and dispense with the rest of the estate between the heirs. According to Article 97 of the Israeli Succession Law, the real estate manager is entitled to do whatever is required to fulfill his duty (all translations in this article are unofficial), regardless of certain procedures requiring special court permission. Expenses incurred during this process are put on the estate itself, including the estate manager’s salary.
It is important to note that these debts and expenses take precedence over the heirs. The Right to the Estate in Israel. Thus, if the estate is distributed before the repayment of all known debts, all the heirs will be fully liable. Prior to the ordering and distribution of the estate in Israel, the heirs are not liable for debts that exceed the estate’s property itself.
The Property Manager will take the following actions, among other things, when assuming his / her role:
– Opening a separate bank account for property management.
– Chronicle and track all income and expenses of the estate.
– Pay all outstanding debts and legacy expenses.
– Distribution of the remainder of the estate to the heirs, after the payment of debts and expenses
– Take legal action against an heir or anyone who caused damage to the estate.
– Submission to the court in detail of the distribution of the estate (including the value of the property granted to each heir at the time of distribution) within thirty days after the distribution of the estate.
The estate manager may be any person appointed by the deceased at his own discretion, or any person nominated by a court of law (if the deceased has not named any person, or for other reasons deemed appropriate by the court). Once the property manager has been appointed, the heirs may not make any transactions relating to the property without the express consent of the estate manager.
If there is a binding will, real estate in Israel will be distributed accordingly. However, when there is no will (either because it does not exist or is found to be invalid), or if the court determines that there are special reasons for deviation from the will, the real estate manager may propose a different agreement to the heirs to whom the estate will be distributed. Such an agreement requires the express consent of all heirs. If the heirs cannot agree on the distribution of the property, it will be distributed according to a court order.
Another important aspect that should not be ignored is the tax implications of the distribution of real estate in Israel. Most Western countries impose some sort of inheritance tax. These countries usually impose a form of tax on gifts to prevent the possibility of tax evasion by granting property. In Israel, an inheritance tax was imposed in 1949, one of the first laws passed, demonstrating its perceived importance. However, the law was repealed in 1981 and has not been renewed ever since. There have been attempts to reinstate inheritance tax to some extent in recent years, but none have been approved so far.
As mentioned, there is no inheritance tax or real estate tax in Israel at the moment. However, many Israeli citizens hold dual citizenship, exposing them to tax laws in other countries. For example, more than 300,000 Israeli citizens residing in Israel are citizens of the United States, and are therefore taxed by both countries.
In addition, a US property tax may apply even to children who are not US citizens or residents, if they own US property in excess of US $ 60,000 (this may change over time). These properties may include real estate in the United States, trust funds and even US corporate shares. These regulations change on a recurring basis, so it is important to consult an experienced lawyer before choosing any of these steps, in order to ensure the protection of one property.