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30 The US-Israel Legal Review 2019
ISRAEL: TRUSTS AND ESTATES
INTRODUCTION
I
srael is a small country, about the same size
as Belgium in Europe or New Jersey in North
America. It is located on the eastern shore of the
Mediterranean Sea and has excellent access by air
and sea to Europe, Africa, Asia and North America.
1
Since 2010, Israel is a member of the OECD.
2
Israel is a country of immigration. Formal
statistics
3
show that at the time of its establishment,
Israel’s population was only 872,700 people, out
of which 716,700 (82%) Jews, and 156,000 (18%)
Muslims, Christians and Druze. formal statistics
4
further show Israel’s phenomenal population growth,
asIsrael’spopulationintheendof2018was8,955,300,
out of which 6,554,700 (73%) Jews, 1,874,800 (21%)
Muslims and 525,800 (6%) others. All of whom
enjoy equal legal rights in all areas of life. It is also
interesting to note that since the establishment of the
State of Israel and until 2017, approximately 110,000
immigrants were born the USA.
5
Moreover, Israel is known as a “start-up nation”
when relating to high-tech and technology. This
sector of the economy is a source of tremendous
wealth and has created a new generation of rich
families. The magazine Israel 21c reported that
in the year 2017
6
Israeli high-tech exits totalled in
$7.44 billion. This amount represents an increase
of 9% over 2016, and 9% of those deals were worth
$400 million to $1 billion.
This demographic and economic environment
provides a fertile ground for US persons, whether
US or Israel residents, to invest in assets in Israel.
INHERITANCE IN ISRAEL
Inheritance in Israel is governed by the Succession
Law.
7
According to section 2 of the Succession
Law, the estate of a deceased passes to his heirs in
accordance with the law – intestate inheritance,
unless the deceased has left a valid will, in which
case the estate is bequeathed in accordance thereof.
The Israeli court has jurisdiction over a person’s
estate provided that the person’s center of life at
the time of his or her death was in Israel, or that the
person left assets in Israel.
8
Accordingly, the Israeli
court has jurisdiction, for example, over the estate
of a US resident who passes way leaving assets in
Israel, as well as on a US person who immigrated
to Israel.
Intestate inheritance
In the absence of a valid will, the Succession
Trusts andEstates in Israel
An overview of Inheritance and trust laws in Israel and their
implications on Israeli and US persons.
Israel’s high-tech economy is a
source of tremendous wealth and
has created a new generation of
rich families.