Why is inheritance planning important in Israel? What should be stressed?
Most of us, at some stage in our lives, will write a will to ensure the transfer of property that we have acquired. According to Rachel Shahar who specializes in family law, inheritance planning is important and should be incorporated into the will. This includes the interests of both the testator and heirs. Planning ahead can prevent disputes between heirs and uncertainty about the distribution of assets. It may also be beneficial from a taxation perspective.
Everybody accumulates property in their lifetime, be it real estate, money or investments. It is important to plan ahead, as our time on earth is limited. No one can predict what the future will bring. It is important to write a will with an Israeli lawyer specializing in wills, inheritance, and Burin, who is not a specialist.
It is not compulsory, but if the deceased did not leave a valid will, then the inheritance law will be the one to determine how the estate of the deceased will be divided among the relatives. If the deceased wishes to divide their property differently than the inheritance law stipulates, they must write a will to ensure that the property is divided in accordance with his wishes.
How do you plan your inheritance in Israel?
In Israel, the law on inheritance allows a person to choose whether to include a descendant in his estate, to give a larger portion of his property to another child, or to a non-relative or institution. They can also condition the transfer of their property upon certain conditions. Rachel Schahar is an inheritance lawyer attorney and notary inheritance specialist who specializes in inheritance disputes and objections to inheritance orders. Attorney Schahar discusses the benefits of proper inheritance planning.
Does Israel have an inheritance tax?
According to Attorney Schahar proper inheritance planning can be very important for taxation reasons: “According to Section 4 of Real Estate Taxation Law registering an apartment under the name of the inheritor is not considered to be a real estate deal and is exempted from taxation.” If there are multiple heirs of the same apartment, and the apartment needs to be sold, the sale and distribution will be considered a tax event. To avoid such a tax, the heirs can reach an agreement even before executing the will. They could agree to exchange money for the transfer of property rights. You should consult an inheritance attorney. Before writing your will, it is important to be familiar with real estate taxation issues.
Planning your inheritance can even help to prevent conflict between heirs. Attorney Shahar says that there are situations where people make a will but do not think about the execution. “When someone writes in their will that they want to sell their apartment, without specifying when the apartment needs to be sold, it creates an opportunity for heirs to fight. Two brothers may inherit an apartment, but they want to sell it right away, while others would rather wait, because real estate values are rising. It is one of the more common inheritance disputes that I see and the best way to solve it is with a detailed will.
She adds, “In order to avoid conflict, it’s important to explain the reasoning behind the division of inheritance. If you exclude a relative from your will, then you need to give a reason, if you prefer another relative.
How can you pass assets on to your heirs abroad?
Attorney Shahar draws attention to individuals who have assets outside Israel. It is important that the will detail if a person owns assets outside of Israel in addition to his assets in Israel. The reason is that it is easy to locate assets in Israel, but if there are assets abroad, they will be hard to track down if the will does not include them. Also, it is important to note that inheritance laws in Israel differ from those in other countries. It is therefore advisable to consult a inheritance lawyer in Israel, who works with an attorney in the foreign country in which the mitzvah’s assets are located.
In addition to writing a detailed and clear will, Attorney Shahar advises against making a complex will which tries to predict the future. “For instance, some people refer to the grandchildren of their children, even though they haven’t been born yet. Some do this to avoid a situation in which the inheritance would pass to the daughters-in law of their children, but make a will that’s very difficult to actually implement. Remember that as the generations go by, the will will become more complex and the estate administrator will charge higher fees because of its complexity. “I recommend including the children in your will, and trusting that they’ll make the right decisions for future generations.”
Can a person transfer his inheritance during their lifetime?
Transferring assets is not limited to after death. It can also be done during a person’s lifetime. According to Attorney Shahar, this process is known as an intergenerational transfers and is best suited for those with capitals over NIS 20,000,000. She says that the Strauss Family is a good example of an intergenerational transfer. He gave his daughter Ofra a substantial inheritance and created compensation mechanisms for all his children.
The intergenerational gift allows the person who is living to witness the transfer and prevents conflicts between heirs. Intergenerational transfers can be planned properly to avoid tax mistakes and save money for the heirs, She notes.
In conclusion, Attorney Schahar states that it is important to discuss the will issue with our heirs, while we are alive, to resolve the problem in a timely manner. “We must talk to the children and explain the decisions made behind the will.” The problems that we did not solve after our death will only be solved when we die.
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Succession Law in Israel – Israeli Inheritance Law
Why is inheritance planning important in Israel? What should be stressed?
Most of us, at some stage in our lives, will write a will to ensure the transfer of property that we have acquired. According to Rachel Shahar who specializes in family law, inheritance planning is important and should be incorporated into the will. This includes the interests of both the testator and heirs. Planning ahead can prevent disputes between heirs and uncertainty about the distribution of assets. It may also be beneficial from a taxation perspective.
Everybody accumulates property in their lifetime, be it real estate, money or investments. It is important to plan ahead, as our time on earth is limited. No one can predict what the future will bring. It is important to write a will with an Israeli lawyer specializing in wills, inheritance, and Burin, who is not a specialist.
It is not compulsory, but if the deceased did not leave a valid will, then the inheritance law will be the one to determine how the estate of the deceased will be divided among the relatives. If the deceased wishes to divide their property differently than the inheritance law stipulates, they must write a will to ensure that the property is divided in accordance with his wishes.
How do you plan your inheritance in Israel?
In Israel, the law on inheritance allows a person to choose whether to include a descendant in his estate, to give a larger portion of his property to another child, or to a non-relative or institution. They can also condition the transfer of their property upon certain conditions. Rachel Shahar is a family law attorney and notary in israel inheritance specialist who specializes in inheritance disputes and objections to inheritance orders. Attorney Schahar discusses the benefits of proper inheritance planning.
