Inheritance Law — Israel
Inheriting a Bank Account in Israel
Access, Transfer, and Beneficiary Designations
Israeli banks freeze accounts immediately on death notification. Adv. Liron Elmaliach guides heirs through the succession order process, joint account issues, and beneficiary designation disputes — Jerusalem and nationwide.
How to Access a Deceased's Bank Account
Most Israeli banks freeze accounts immediately upon receiving formal notification of a customer's death. This is standard procedure and applies even if the heir is a spouse or child. From that point, no withdrawals, transfers, or standing orders are processed until an authorised court order is presented.
To release the funds, heirs must obtain either a Succession Order (צו ירושה) — where the deceased left no will — or a Probate Order (צו קיום צוואה) — where a will exists. These orders are issued by the Registrar of Inheritance Affairs or the Family Court and specify each heir's share of the estate.
Once the order is obtained, the heirs present the certified original together with valid identification to the bank. Where multiple heirs exist, some banks require all of them to appear in person, or alternatively a notarised authorisation from the absent heirs. The bank then transfers each heir's share to their designated account.
Joint accounts are treated differently: the surviving joint account holder typically retains immediate access to the account, since the right of survivorship is built into most Israeli joint account agreements. A death certificate and updated identification are usually all that is required to continue operating the account.
Accounts with Beneficiary Designations
Israeli banks offer account holders the option to register a "payment to third party" (תשלום לצד שלישי) designation. This is a contractual instruction filed directly with the bank, naming one or more beneficiaries to receive the account balance upon the account holder's death.
The critical legal consequence: an account with a valid beneficiary designation is treated as a non-estate asset. The funds pass directly to the named person — bypassing the will entirely and without requiring a succession order or probate order. The named beneficiary simply presents the death certificate and their identification to the bank to claim the funds.
To check whether such a designation exists on a deceased person's account, the heirs should contact the bank's inheritance department (מחלקת עזבונות) with proof of identity and their relationship to the deceased. The bank is obligated to disclose whether a designation exists, even if it cannot reveal the beneficiary's identity to non-beneficiaries.
Heirs who believe a beneficiary designation was obtained by undue influence, made when the deceased lacked capacity, or was forged or improperly revoked may challenge it before the Family Court. These cases require evidence and legal strategy — early advice significantly affects the outcome.
Frequently Asked Questions — Inheriting a Bank Account in Israel
Common questions about accessing a deceased's bank account in Israel
Related Topics
Further reading on inheritance law in Israel
Need Help Accessing a Deceased's Bank Account?
Adv. Liron Elmaliach — Inheritance Law, Jerusalem
Free initial consultation