Leaving a Bequest to a Grandchild in Israel
Direct Bequest, Trust & Conditional Inheritance

Israeli inheritance law places no restriction on naming a grandchild as a direct beneficiary in your will. You can leave a specific asset — an apartment, a savings account, securities — or a percentage of your estate directly to a grandchild, entirely independently of what you leave to your children. This is a fully valid and commonly used estate-planning tool.

When the grandchild is a minor, the picture becomes more complex. A child under eighteen cannot hold significant assets in their own name. Without a trustee named in the will, the inherited assets fall under the supervision of the Legal Guardian General, subject to court oversight, annual reporting requirements, and restrictions on how the funds may be used. Naming a trustee of your choosing in the will is almost always the better solution.

Tax implications are another consideration. Israel does not impose inheritance tax, but a real-property bequest may trigger betterment levy and purchase-tax assessments when transferred. These should be factored into the planning from the outset.

Interaction with the child's parent's share is a practical concern. A direct bequest to a grandchild reduces the pool available to the grandchild's parent (your child). If you intend to provide for both, the distribution must be planned carefully to avoid ambiguity and potential family conflict — especially in blended families.