Naturally, most of the properties owned by foreign residence are situated overseas (in the country in which they reside). Therefore they usually draft their wills in their country of residence.
In cases where a foreign resident owns properties in Israel, it is recommended to draft an additional will in Israel.
The will drafted in Israel will only concern those properties that are situated in Israel, and it will expressly state that it does not derogate from the will that pertains to the owner’s properties overseas.
The reasons why it is essential for a foreign resident to draft a will in Israel with regard to properties and money situated in Israel are as follows:
- If the testator has money in Israeli bank accounts and / or real estate in Israel, the properties cannot be delivered to the successors without a succession order or a probate order.
- The successors may receive a probate order only if the testator has left a will. If the testator has not left a will, a succession order is required (in which the identity of the deceased’s successors is determined in accordance with the provisions of the Succession Law that apply in the absence of a will). Procuring these orders takes several months (four months or more) and, if the testator is a foreign resident, the process could take more than a year. Before the orders are obtained, the successors are not allowed to make use of the money or to have the properties registered in the successors’ name.
- Will-drafting rules vary from country to country. The requirements that apply to wills in Israel differ from those that apply in other places in the world. In order for a will to be effective in Israel, it needs to comply with the requirements set out in the Israeli Succession Law. If it fails to comply with requirements of the Israeli law, it may be difficult to execute the will in Israel. For example, the way in which the testator, the successors and the witnesses of the will are identified overseas differs from the requirements of the Israeli law. In Israel, the witnesses are sometimes required to testify about the circumstances under which the will was made, whereas in certain places abroad this is uncommon and it may even be difficult to find the witnesses of the will. In Israel, it is required to file an original copy of the will, and if the successors do not possess this original copy, this might make it difficult to obtain a probate order
- The official languages of Israel are Hebrew and Arabic. In order to apply for a probate order concerning a will that has been drafted overseas in a foreign language, a notarized translation is required. If it is possible to draft the will that is relevant to the properties in Israel in Hebrew, this will confer a significant advantage.
- There is no inheritance or estate tax in the State of Israel. Such taxes exist in some countries outside of Israel. In such cases, the testator’s attorney in the country of residence will complete tax planning for the testator so as to reduce the tax liability. In such cases, the Israeli attorney may collaborate with the testator’s attorney in the country of residence in order to make sure that the properties in Israel are handled according to the tax planning completed by the foreign attorney.
It is recommended for foreign residents with properties in Israel to draft a will in Israel with an Israeli attorney. This will save the successors a lot of time and money after the testator passes away.
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Note:
This article provides general and preliminary information only and should not be construed in any event as legal counseling and/or as a substitute for legal counseling in respect of any case and its circumstances.
The above should not be relied upon without consulting with an Israeli lawyer before taking any action or making any decision. The above is true as of the date of its composition, and its veracity may change from time to time.
Distribution and/or duplication and/or photocopying of this document and/or part thereof without permission are prohibited.
