Translation Notice — This is an English translation of a Hebrew law and may contain inaccuracies. In any dispute or legal matter, the original Hebrew text as published in Reshumot (ספר החוקים) is the sole authoritative and legally binding version.

Law

Inheritance Law, 5725-1965

חוק הירושה

Chapter VI: Administration and Distribution of an Estate

Section A: Preservation of the Estate

Measures for Preservation of the Estate

77.

At any time after the death of the testator and for as long as an estate administrator has not been appointed, the court may, upon the application of an interested party or on its own initiative, take such measures as it deems fit for the preservation of the Estate or for the preservation of rights in the Estate, including a temporary stay of transactions in the assets of the Estate, the issuance of an Order for the sale of perishable assets of the Estate, and the appointment of a temporary estate administrator.

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Section B: Estate Administrator

Appointment of Estate Administrator

78.

[Amendment: 1998, 2023]

(a)The court may, upon application by an interested party, appoint, by order, an estate administrator.

(b)Where the application is made with the consent of all parties concerned, the application shall be submitted to the Registrar of Inheritance Affairs; where such an application is submitted, the Registrar of Inheritance Affairs may appoint, by order, an estate administrator, including a temporary estate administrator pursuant to Section 77, and shall have, with respect to the appointment, the powers vested in the court pursuant to Section 89.

Eligibility for Appointment

79.

An individual, a corporation, or the General Guardian may be appointed as estate administrator.

Consent

80.

[Amendment: 1998]

No person shall be appointed as estate administrator unless that person has notified the court or the Registrar of Inheritance Affairs, as the case may be, of their consent thereto.

Instructions of the Testator

81.

[Amendment: 1998]

Where the testator has designated in their Will a person to execute the Will or to administer the estate, the court or the Registrar of Inheritance Affairs, as the case may be, shall appoint that person as estate administrator, unless that person is unable or unwilling to accept the appointment, or unless the court or the Registrar of Inheritance Affairs is satisfied, for special reasons to be recorded, that there are special reasons not to appoint that person.

Proceedings in Court

81a.

[Amendment: 1998]

Where an estate administrator has been appointed pursuant to Section 78(b) or pursuant to Section 81, the proceedings under this Chapter shall continue in the court.

Duties

82.

An estate administrator is obliged, subject to the directions of the court, to collect the assets of the estate, to manage the estate, to settle the debts of the estate, to distribute the residue of the estate among the heirs in accordance with an inheritance order or a probated Will, and to do all other things necessary for the execution of an inheritance order or a probated Will.

Court Directions

83.

The court may, at any time, upon application by an interested party or on its own initiative, give an estate administrator directions in any matter relating to the discharge of their duties.

Estate Inventory

84.

[Amendment: 1985, 2023]

(a)As soon as practicable, and no later than sixty days after their appointment, or at another time if the consent of the heirs has been obtained therefor, the estate administrator shall submit to the heirs an inventory of the assets of the estate and its debts, and shall verify by affidavit that to the best of their knowledge the inventory is complete.

(b)Where an inventory has been submitted and thereafter additional assets or debts are discovered, the estate administrator shall submit, within fourteen days from the day of discovery or at another time if the consent of the heirs has been obtained therefor, a supplementary inventory and shall verify it as provided in sub-section (a).

(c)[(Repealed).]

(d)The estate administrator shall submit to the heirs the inventory or the supplementary inventory, as the case may be, after having delivered it to the General Guardian for documentation purposes only, and together with confirmation of such delivery.

Valuation

85.

[Amendment: 1985, 2023]

The court may direct —

(1)that the estate administrator shall submit to the heirs, at a time fixed by the court, a valuation of the estate assets prepared as of a date fixed by the court;

(2)that the said valuation shall be prepared by a valuer or by another person designated by the court.

Investment of Funds

85a.

[Amendment: 1976-2]

Funds of the estate that are not required for its current administrative needs, the estate administrator is obliged to hold or invest as necessary for the preservation of the principal and the securing of income; the Minister of Justice may prescribe by Regulations methods for the investment of estate funds that shall be mandatory upon an estate administrator.

Accounts and Reporting to Heirs

86.

[Amendment: 1985, 2023]

(a)An estate administrator is obliged, in all matters of the estate, to maintain accounts and to submit to the heirs a report as prescribed by the Minister pursuant to sub-section (b), and also to provide them with full information upon their demand; a report pursuant to this sub-section shall be submitted to the heirs at least once a year and upon the termination of the estate administrator's office, or at other times if the consent of the heirs has been obtained therefor.

(b)The Minister of Justice, with the approval of the Constitution, Law and Justice Committee of the Knesset, may prescribe Regulations regarding the maintenance of accounts and reports that an estate administrator is required to submit to the heirs pursuant to sub-section (a), including their form and the manner and times of their preparation and submission.

Reporting to the General Guardian

87.

[Amendment: 1985, 2023]

(a)In the cases enumerated in the Second Schedule, and for as long as the circumstances specified therein subsist, an estate administrator shall submit the inventory, valuation, and reports referred to in Sections 84, 85, and 86, respectively, also to the General Guardian for examination; the Minister of Justice may promulgate Regulations regarding the manner of examination of the inventory, valuation, and reports by the General Guardian.

(b)The General Guardian may extend the periods for submission of the inventory, valuation, and reports submitted to the General Guardian pursuant to sub-section (a).

Liability

88.

An estate administrator is liable for damage caused as a result of a breach of their duty as estate administrator; the court may exempt them from liability, in whole or in part, if they acted in good faith and intended to discharge their duties; an estate administrator bears no liability if they acted in good faith in accordance with the directions of the court.

Security

89.

(a)The court may, before or after the appointment of an estate administrator, require the estate administrator to pledge assets or to provide other security to ensure the discharge of their duties and obligations, and the court may, at any time, require additional security or release security that has been given, in whole or in part.

(b)Where the testator has directed in their Will that the executor of the Will or the administrator of the estate shall not be required to provide security, or where the testator designated in their Will a person to execute the Will or administer the estate without directing that such person provide security, the court shall not require the estate administrator to provide security unless it is satisfied, for reasons to be recorded, that there were special reasons to do so.

Enforcement of Security

90.

[Amendment: 2023]

Security pursuant to Section 89 shall be given in favour of the heirs, and they are empowered to act for its enforcement in accordance with the directions of the court; in the cases enumerated in the Second Schedule, the General Guardian may, upon the application of one or more heirs, represent the heirs in all matters relating to the enforcement of the security, if the General Guardian or the court finds that the circumstances of the case so require.

Remuneration

91.

[Amendment: 1998]

The court may award an estate administrator remuneration in accordance with rules prescribed by the Minister of Justice by Regulations.

Termination of Office

92.

(a)An estate administrator may resign from their position by written notice to the court; the resignation shall not take effect unless it has been confirmed by the court and from the date specified therefor in the confirmation.

(b)The court may, upon application by an interested party or on its own initiative, dismiss an estate administrator if they have not properly discharged their duties or if the court sees other cause for dismissal.

(c)The office of an estate administrator shall terminate if the court has confirmed that they have completed their duties, and from the date specified therefor in the confirmation.

Multiple Administrators

93.

[Amendment: 1998]

Where the court or the Registrar of Inheritance Affairs has appointed two or more estate administrators, the following provisions shall apply, unless the court has directed otherwise:

(1)The estate administrators are obliged to act by agreement; in a matter on which their opinions are divided, they shall act as the court decides;

(2)An act by one or some of the estate administrators requires the consent of the others or the approval of the court, in advance or retroactively;

(3)In a matter that does not admit of delay, each of the estate administrators may act on their own initiative;

(4)Each estate administrator is liable for the acts of their co-administrators unless they objected thereto or were unaware thereof;

(5)Where the position of one of the estate administrators has become vacant or they have ceased to act, temporarily or permanently, the others are obliged to notify the court thereof immediately, and they are obliged and empowered to continue in their duties for as long as the court has not directed otherwise.

Protection of Third Parties

94.

An act of an estate administrator that requires consent or approval pursuant to Section 93(2) shall be valid even in the absence of such consent or approval if it was performed vis-à-vis a person who did not know and was not required to know that it required consent or approval.

Instructions of the Testator

95.

Where the testator has given instructions in their Will regarding any matter that is, under this Division, within the discretion of the court, the court shall act in accordance with those instructions, unless it is satisfied, for reasons to be recorded, that there were special reasons to deviate therefrom.

General Guardian as Estate Administrator

96.

Where the General Guardian has been appointed as estate administrator, the provisions of Sections 80, 84 to 91 shall not apply.

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Section C: Administration of the Estate by an Estate Administrator

Powers of the Estate Administrator

97.

The estate administrator is empowered to do all that is necessary for the performance of his duties; however, the following acts he is not empowered to perform without prior court approval:

(1)Transfer, encumbrance, partition, or liquidation of an agricultural, industrial, craft, or commercial operating unit, or of a dwelling unit;

(2)A tenancy to which the tenant protection laws apply;

(3)An act whose validity is contingent upon registration in a register maintained pursuant to law;

(4)The provision of a guarantee;

(5)Any other act which the court has designated, in the order of appointment or thereafter, as requiring such approval.

Collection of Estate Assets

98.

The estate administrator may demand that the assets of the estate be delivered to him and that debts owed to the deceased be discharged to him, and his authority in this regard is equivalent to that of the deceased.

Invitation of Creditors

99.

(a)The estate administrator is obligated to invite the creditors of the deceased to notify him in writing of their claims; the invitation shall be published publicly, and a period of not less than three months from the date of publication shall be fixed for the submission of such notification.

(b)The court may exempt the estate administrator from the duty to invite the creditors, if it finds that under the circumstances of the matter there is no justification for inviting them.

(c)Nothing in the provisions of this Section shall derogate from the duty of the estate administrator to discharge the debts of the estate that have come to his knowledge in any manner whatsoever.

Means of Discharging Estate Debts

100.

(a)For the discharge of the debts of the estate, the estate administrator shall use, first and foremost, the funds available in the estate.

(b)To the extent that the discharge of debts requires the realization of estate assets, the estate administrator shall first offer them to the heirs and shall allow them a reasonable period of time to acquire them at a price not less than the market price.

(c)Where the deceased bequeathed a specific asset to a particular person, that asset shall not be realized so long as it is possible to discharge the debts of the estate from other estate assets.

(d)The court may give the estate administrator directions different from those set out in this Section, and may direct him that the sale of estate assets shall be conducted in the manner in which such assets are sold in execution proceedings or in such other manner as it shall determine.

Secured Debts

101.

The provisions of this Law shall not affect the collection of a debt of the deceased that was secured at the time of his death, from the security.

Future Debts and Conditional Debts

102.

With respect to a debt of the deceased that has not yet fallen due, and a conditional debt, the court may, if it sees cause therefor, order that it be secured or discharged as it shall determine, even before the due date or before the condition has been fulfilled.

Expenses of Estate Administration

103.

The expenses of administering the estate, including the remuneration of the estate administrator, shall be borne by the estate, unless the court has ordered that they shall be borne, in whole or in part, by another party.

Order of Priority Among Estate Debts

104.

[Amendment: 1973]

(a)The following amounts (in this Law – estate debts) shall be discharged in the following order of priority:

(1)expenses connected with the burial of the deceased, his interment, and the erection of a tombstone on his grave, in accordance with what is customary in the circumstances;

(2)the expenses of a succession order, a probate order, and the administration of the Estate, to the extent that they are chargeable to the Estate;

(3)debts owed by the deceased on the eve of his death that were not extinguished upon his death (in this Law – the deceased's debts), including amounts due to his wife under a ketubbah, to the extent that the amount of the ketubbah does not exceed a reasonable sum;

(4)amounts due to the spouse of the deceased on a cause of action arising from the matrimonial relationship, other than a ketubbah as referred to in paragraph (3), and amounts due to a spouse under the Spouses (Property Relations) Law, 5733–1973, or under a property agreement within the meaning of that Law.

(b)Estate debts of equal priority shall be discharged in proportion to their respective amounts.

(c)The priority of taxes and other compulsory payments shall be in accordance with the provisions of the laws governing them.

(d)Estate debts take priority over maintenance from the Estate.

Determination and Discharge of Debts

105.

(a)Where there is reason to assume that the estate will suffice for the discharge of all estate debts, the estate administrator may discharge debts even before the determination of all other debts has been completed.

(b)Where there is concern that the estate will not suffice for the discharge of all estate debts, the estate administrator shall discharge only those debts whose discharge the court has permitted, in full, in part, or in installments, all as the court has directed.

(c)For the purposes of this Section, "estate debts" includes maintenance payments from the estate.

Bankruptcy of the Estate

106.

Where it becomes apparent that the estate does not suffice for the discharge of all estate debts, the estate administrator is obligated to submit an application for an order for the administration of the estate in Bankruptcy pursuant to bankruptcy law, unless the court has ordered another manner of winding up the estate.

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