THE US-ISRAEL LEGAL REVIEW 2019

The US-Israel Legal Review 2019 33

Probate procedure in Israel requires that the

original will be submitted with the Registrar of

Inheritance, except to an oral will. In the absence

of an original will, such as when the original has

already been submitted in another jurisdiction, a

separate application should be made to the court to

approve the submission of a copy.

Section 54 of the Inheritance Regulations

provides that a copy of any application, including an

application for a probate or inheritance order, shall

be submitted to the review of the Administrator

General, who may, in its discretion, conduct

additional inspection of the application and require

further information and documents.

Section 17 of the Inheritance Regulations

requires that anoticewith respect to theapplication

for the inheritance or probate order be published in

one daily newspaper and in the formal publication

of the State of Israel (Reshumot). The notice

includes an invitation to contest the application.

Section14oftheInheritanceRegulationsprovides

that an application for a probate or inheritance order

shall be dismissed, unless notifications are sent with

respect thereof as follows:

In the instance of an application for an

inheritance order – notifications to the heirs

under law listed in the application.

In the case of an application for a probate order

– notifications to the beneficiaries under the

will, together with a copy of the will itself. If

the beneficiaries under the will do not include

children of the deceased or their children,

parents of the deceased or their children, or

the deceased’s spouse, than such notifications

should be delivered to the deceased’s children

and spouse at the time of his death, and if none of

whom is alive – to the deceased’s parents, and if

none of whom is alive – to the deceased’s siblings.

As evident from the above, the inheritance

procedure in Israel is a complex and cumbersome

procedure. It may also be uncomfortable for the

deceased’s family members due to the requirement

to disclose the contents of the will.

THE ISRAELI TRUST

Another possible way to transfer assets is by

creating a trust under the Trust Law.

The Trust

Law defines in section 1 a trust as the duty imposed

on a trustee to hold or to otherwise deal with assets

under its control for the benefit of another or for

some other purpose.

A trust can be created either in accordance with

the law, by a contract with the trustee, or by deed of

Hekdesh

(endowment):

A Trust that is created in accordance with

the law is a relationship that complies with

the definition of section 1 that its terms and

conditions are determined in legislation, such as

the

modus operandi

of an estate executor

, or a

company liquidator.

A trust created by a contract is governed by

the contracts law,

and requires accordingly

an agreement between the settlor and the

trustee with no specific procedure necessary

for its validity.

A Trust created by a deed of

Hekdesh

refers to

two types of trust:

•

inter vivos

trust – such trust must be in

writing and signed in the presence of a notary.

This Trust becomes operative during the

lifetime of the settlor upon transfer of the

assets of the trust to the control of the trustee.

•

A testamentary trust – such trust must

comply with the formal requirements under

the Succession Law for executing a will as

detailed above.

A Testamentary trust will

become valid upon issuance of a probate

order with respect thereof.

The

inter vivos

Hekdesh is a secret document,

contrary to a will, and the only copy the trust deed

is deposited with the Notary. The settlor may set

the terms and conditions of the trust as he sees fit.

Once the assets are settled into the trust during the

Once the assets are settled into

the trust during the lifetime of

the settlor, they are removed

from his estate ... provided the

trust is irrevocable and was set

properly.