Lawyers
Inheritance Rights of a Foreign Resident With Assets in Israel
As a general rule, when a person who resides in Israel bequeaths assets through a will, Israeli inheritance law governs the estate. But what happens when the deceased was a foreign resident who left assets in Israel? This article examines the legal framework that applies in these cross-border inheritance cases.
By Igal Mor, Adv. & Notary
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Which Court Has Jurisdiction — Israel or the Deceased's Country of Residence?
In today’s global economy, many individuals own property and assets in countries where they do not reside — sometimes for investment purposes, and sometimes for personal or family reasons. When such a person passes away, a critical legal question arises: which court has jurisdiction over the estate? If a non-resident of Israel dies and leaves behind assets located in Israel, does the Israeli court or the court in the deceased’s country of residence have authority to adjudicate the inheritance?
Which Law Governs the Distribution of the Estate — Israeli Law or Foreign Law?
Section 136 of the Inheritance Law, 5725-1965, provides that Israeli courts have jurisdiction to adjudicate the estate of any person whose place of residence at the time of death was in Israel, or who left assets in Israel. This means that even when the deceased was not an Israeli resident and lived entirely in another country, the Israeli court has authority over the portion of the estate located in Israel.
However, an important distinction must be drawn between jurisdiction and applicable law. While the Israeli court has the authority to hear the case, the actual distribution of the property is carried out according to the inheritance law of the deceased’s country of residence — not under Israeli inheritance law.
Expert Opinions on Foreign Law and Inheritance Orders
This framework creates a practical challenge: Israeli courts are not familiar with the inheritance laws of other countries, yet they are required to rule in accordance with those foreign laws. To address this, the inheritance procedure for a foreign resident’s estate includes a unique requirement. The heirs must submit an expert opinion from a legal professional who is knowledgeable in the inheritance laws of the deceased’s country of residence. In this opinion, the expert explains how the estate should be distributed under the applicable foreign law. If the court finds the opinion reliable and no contradictory opinion has been submitted, it will order the distribution of the inheritance accordingly.
Advantages of Drafting a Separate Israeli Will
As noted, the Inheritance Law grants Israeli courts jurisdiction over the estate of a non-resident who left assets in Israel. However, because the applicable law in such cases is the foreign law of the deceased’s country of residence, the inheritance process becomes significantly more complex. For this reason, it is highly advisable for foreign residents with assets in Israel to draft a separate Israeli will covering those assets. By doing so, heirs can submit a straightforward request for a probate order under Israeli law, avoiding the complicated and costly procedure of obtaining and submitting a foreign-law expert opinion.
Consult an Inheritance and Estate Planning Attorney
If you are dealing with the distribution of a foreign resident’s estate, we strongly recommend seeking legal counsel without delay. An attorney specializing in inheritance law can ensure that the heirs’ rights are fully protected and that the estate’s resources are maximized.
Inheritance proceedings frequently involve disputes — whether over the issuance of an inheritance order or objections to the execution of a will — making professional legal representation essential. In complex cases such as the inheritance of a foreign resident, the attorney’s role is especially critical, as the Israeli court must apply foreign law to distribute the assets. The heirs are required to provide the court with an expert opinion on the relevant foreign law.
At Mor & Co. Law Firm, we will locate the appropriate foreign-law expert, verify their qualifications, and manage the entire procedure until the estate is distributed to the rightful heirs.