Inheritance Without a Will: How Estates Are Divided Among Siblings
Translated & summarized from Maariv by baba
Israeli inheritance law dictates equal division of an estate among children when there is no will, with a surviving spouse receiving specific assets. Lawyer Noy Yosefzon Bosni highlights that this automatic division can lead to disputes and unwanted co-ownership of properties. She recommends estate distribution agreements, which allow for customized asset division and can save on taxes and conflicts, as demonstrated in a case involving two apartments.
The story in 6 lines · by baba
- Israeli law mandates equal estate division among children if no will is left.
- A surviving spouse inherits household items and half of remaining assets.
- Automatic equal division can lead to sibling disputes and unwanted co-ownership.
- Estate distribution agreements allow customized asset division among siblings.
- Agreements can save siblings money on taxes and avoid conflicts.
- Consulting a lawyer is advised for complex inheritance situations.
When a parent dies without leaving a will, Israeli law dictates that their estate is divided equally among their children. If a surviving spouse exists, they inherit household furnishings and half of the remaining assets, with the other half split equally among the children. However, this automatic equal division may not always align with reality and can lead to unnecessary conflicts and expenses.
A lawyer, Noy Yosefzon Bosni, explains that while an inheritance order is granted if no objection is filed, this equal division can be problematic. For instance, if a father leaves two apartments, each sibling would automatically receive half of each apartment, forcing them into unwanted co-ownership of both properties.
To avoid such situations, an estate distribution agreement can be drafted. This agreement allows siblings to divide assets in a customized manner, potentially saving on property taxes. In one case, a client and her sister, instead of splitting each apartment, used an appraiser to value the properties. The client received the larger apartment and relinquished a portion of the cash assets from the father's bank account in return. This agreement allowed for a more suitable division of assets and, importantly, saved them property transfer taxes because the agreement was signed before the properties were officially registered in their names and the equalization was done from the estate's funds.
Bosni emphasizes that many siblings accept the automatic distribution under the Inheritance Law, only to find themselves in unwanted co-ownership and facing disputes over selling assets. She advises consulting with a lawyer to explore how an estate distribution agreement can resolve complex property division issues among siblings, saving both conflict, time, and money.
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