Israel Freezes 86,000 Bank Accounts of Deceased Citizens Holding 1.6 Billion Shekels

Approximately 86,000 bank accounts belonging to deceased Israeli citizens have been frozen, holding a total of around 1.6 billion shekels, according to the Bank of Israel. These frozen accounts are part of a larger pool of 530,000 dormant accounts and deposits, collectively worth approximately 6.5 billion shekels.

The primary reason for these accounts being frozen is the lack of information among family members regarding their existence or the failure to promptly secure legal access. Experts highlight that standard bank powers of attorney automatically become void upon the account holder's incapacitation or death.

Consequently, relatives lose the ability to access these funds precisely when they may be needed for elder care expenses or to manage inheritance proceedings. This situation often leaves families in a difficult financial position during a sensitive time.