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
Legal Capacity and Guardianship Law, 5722-1962
חוק הכשרות המשפטית והאפוטרופסות
Chapter II1: Durable Power of Attorney
Section A: Definitions
Definitions – Internal
32a.
In this Chapter –
"Capable Person" – one who is able to understand the meaning of granting a lasting power of attorney, its purposes and consequences, and if that person is a person with a disability – given accommodations pursuant to the Equal Rights for Persons with Disabilities Law;
"Advance Directives to an Attorney-in-Fact" – as defined in Division F;
"Expert Opinion" – an opinion, certificate, or expert confirmation as determined by the Minister pursuant to Section 83(b);
"Agency Law" – the Agency Law, 5725–1965;
"Medical Power of Attorney" – as defined in Section 32o;
"Donor" – one who appoints an attorney-in-fact pursuant to the provisions of Division B;
"Capable of Understanding in the Matter" – one who is able to understand a particular matter and make decisions in connection therewith;
"Personal Affairs" – including matters relating to a person's personal wellbeing, daily needs, place of residence, health, or physical, mental, or social affairs, but excluding any matter relating to that person's property.
Need to cite this law in a foreign court?
Eli Shimony Israeli Attorneys-at-Law provides certified Expert Legal Opinions on Israeli law within 24–48 hours, accepted by courts worldwide.
Contact Us →Section B: Appointment of an Attorney-in-Fact
Appointment of an Attorney
32b.
[Amendment: 5776]
(a)A competent adult may, by a continuing power of attorney granted pursuant to the provisions of this Chapter (in this Chapter – a continuing power of attorney), appoint another person, one or more, who shall be authorized to act on his behalf in the matters referred to in subsection (b) and to represent him in connection with those matters (in this Chapter – an attorney-in-fact), all as the appointer shall set out in the continuing power of attorney and in accordance with the provisions under this Chapter.
(b)A continuing power of attorney may relate to the personal affairs of the appointer, in whole or in part, or to his property affairs, in whole or in part, and the appointer may appoint the same person as attorney-in-fact for personal matters and as attorney-in-fact for property matters.
Who May Be Appointed as Attorney-in-Fact
32c.
[Amendment: 5776]
(a)An individual in whom all of the following conditions are met may be appointed as an attorney-in-fact:
(1)They have reached the age of 18;
(2)No guardian has been appointed for them and no enduring power of attorney has come into effect in their regard, for as long as such appointment remains in force;
(3)With respect to an attorney-in-fact for property matters — at the time of signing the power of attorney and at the time of its coming into effect, both of the following apply to them:
(a)They have not been declared bankrupt under the Bankruptcy Ordinance [New Version], 5740–1980, and have not been granted a discharge;
(b)They are not a severely restricted customer within the meaning of Section 3 of the Checks Without Cover Law, 5741–1981;
(4)They do not provide the donor with medical treatment as defined in the Patient's Rights Law, social, nursing, or rehabilitative care, in exchange for payment, whether directly or indirectly;
(5)They do not provide the donor with accommodation in exchange for payment, whether directly or indirectly, unless they are a relative of the donor;
(6)They are not the attorney-at-law or the professional before whom the enduring power of attorney was drawn up, pursuant to Section 32n or Section 32o.
(b)A person shall not serve as an attorney-in-fact under this Chapter, nor agree to serve as an attorney-in-fact, for more than three persons, unless they are a relative of the donor.
Joint Attorneys-in-Fact
32d.
[Amendment: 5776]
Where a person has appointed under this Division two or more attorneys-in-fact to act jointly, the provisions of Section 46(1) through (4) shall apply to the attorneys-in-fact, with the necessary modifications, unless the appointer has provided otherwise in the power of attorney; if the position of one of the attorneys-in-fact becomes vacant or he ceases to act, whether temporarily or permanently, the remaining attorneys-in-fact shall continue to act in accordance with the power of attorney and the provisions under this Chapter, for as long as the appointer has not provided otherwise in the power of attorney.
Substitute Attorney-in-Fact
32e.
[Amendment: 5776]
The appointer may designate in the power of attorney a substitute attorney-in-fact who shall replace the attorney-in-fact if his appointment lapses; upon the lapse of the appointment of the attorney-in-fact, the substitute shall become the attorney-in-fact.
Need to cite this law in a foreign court?
Eli Shimony Israeli Attorneys-at-Law provides certified Expert Legal Opinions on Israeli law within 24–48 hours, accepted by courts worldwide.
Contact Us →Section C: Powers of an Attorney-in-Fact
Powers of Attorney-in-Fact
32f.
[Amendment: 5776, 5777, 5784-2, 5786]
(a)An attorney-in-fact is authorized to make, on behalf of the principal, any decision in connection with the matters covered by the power of attorney that the principal would have been authorized to make, and to perform on behalf of the principal any act in connection with those matters that the principal would have been entitled to perform, except for an act that by its nature or by law must be performed personally; the attorney-in-fact is also entitled to receive information that the principal is entitled to receive in connection with the matters covered by the power of attorney — all subject to the instructions set by the principal in the power of attorney and to the orders of the court as referred to in Section 32kz.
(b)Without derogating from the provisions of subsection (a), an attorney-in-fact shall not be authorized to perform the following acts on behalf of the principal:
(1)Conversion of religion;
(2)Making decisions or performing acts that the principal was authorized to do on behalf of another person or by virtue of being a parent or guardian;
(3)Giving consent to the placement of a child for adoption;
(4)Participating in elections;
(5)Any act or expression of wishes that a patient, the patient's attorney-in-fact, or guardian is entitled or authorized to perform or express pursuant to the Dying Patient Law, 5766–2005;
(6)Making a Will / Testament, or designating beneficiaries with respect to amounts payable upon a person's death pursuant to Section 147 of the Inheritance Law, 5725–1965.
(c)Notwithstanding the provisions of subsection (a), an attorney-in-fact shall not be authorized to perform on behalf of the principal any of the acts listed below, unless expressly authorized to do so in the power of attorney:
(1)
(a)Making donations, except to a person expressly specified in the power of attorney and in the amount specified therein, provided that the cumulative amount does not exceed 100,000 new shekels;
(b)Making gifts, except to a person expressly specified in the power of attorney and at the value set by the principal, provided that the cumulative amount does not exceed 100,000 new shekels — all except gifts that are customary in the circumstances of the matter;
(c)Extending loans, except to a person expressly specified in the power of attorney and in the amount specified therein, provided that the cumulative amount does not exceed 100,000 new shekels;
(d)Another legal act, or several interrelated legal acts, including several acts connected to a single transaction, whose total value exceeds 100,000 new shekels but does not exceed 500,000 new shekels;
(e)Performing acts with respect to a pension product, as defined in the Supervision of Financial Services Law (Pension Counseling, Marketing and Clearing System), 5765–2005 (in this Law — "pension product"), except for —
(1)Submitting a request to receive a pension upon reaching retirement age pursuant to Section 3 of the Retirement Age Law, 5764–2004;
(2)Withdrawing funds from a continuing education fund in a manner that does not contravene the provisions under Section 23 of the Supervision of Financial Services Law (Provident Funds), 5765–2005;
(3)Withdrawing funds from a provident fund for benefits designated by the Minister of Justice by order, in consultation with the Minister of Finance, in a manner that does not contravene the provisions under Section 23 of the Supervision of Financial Services Law (Provident Funds), 5765–2005;
(2)
(a)Giving consent to a psychiatric examination, psychiatric treatment, or hospitalization — all in a hospital as defined in the Treatment of Mentally Ill Patients Law, 5751–1991 — or to discharge from such hospitalization, under conditions set by the principal;
(b)The consent of an attorney-in-fact pursuant to this paragraph shall not be valid if, at the time the consent is sought, the principal objects to the examination, treatment, or hospitalization, unless the enduring power of attorney in this regard was also signed before a psychiatrist and the principal expressly authorized the attorney-in-fact to give consent notwithstanding the principal's objection;
(c)An enduring power of attorney pursuant to sub-paragraph (b) shall not be signed unless a psychiatrist as aforesaid has explained to the principal the meaning and consequences of such consent and has satisfied himself that the principal understood the matter and that the power of attorney was given with free and voluntary consent, without the application of pressure or undue influence upon the principal and without exploitation of the principal's distress or weakness;
(d)The consent of the attorney-in-fact in a case of objection as referred to in sub-paragraph (b) shall not be valid for hospitalization exceeding 48 hours, or if at that time the principal is capable of giving informed consent.
(d)Notwithstanding the provisions of subsection (a), an attorney-in-fact shall not be authorized to perform on behalf of the principal any of the legal acts listed below without prior approval having been granted pursuant to the provisions of Section 74a:
(1)Transfer, pledge, division, or liquidation of an agricultural, industrial, craft, or commercial business unit, or of an apartment;
(2)A Real Property / Real Estate transaction, except for the leasing of an asset for a period not exceeding five years to which the provisions of the Tenant Protection Law [Consolidated Version], 5732–1972, do not apply;
(3)Assignment or pledge of a right to acquire an interest in Real Property / Real Estate;
(4)A lease to which the Tenant Protection Law [Consolidated Version], 5732–1972, applies;
(5)Renunciation of a share or portion of an Estate, or transfer or pledge of a share or portion of an Estate;
(6)Making a donation in an amount exceeding the amount set in the power of attorney or in an amount exceeding 100,000 new shekels cumulatively, whichever is lower — all provided that express authorization of the principal has been given therefor;
(7)Making a gift that is not customary in the circumstances of the matter; and where express authorization has been given — a gift as aforesaid in an amount exceeding the amount set in the power of attorney or in an amount exceeding 100,000 new shekels cumulatively, whichever is lower;
(8)Another legal act, including several acts connected to a single transaction, whose value exceeds 500,000 new shekels, or 100,000 new shekels — if express authorization as referred to in subsection (c) has not been given;
(9)Withdrawal of funds from a provident fund in contravention of the provisions under Section 23 of the Supervision of Financial Services Law (Provident Funds), 5765–2005, as the meaning thereof in Section 87(a)(2) of the Income Tax Ordinance, their transfer to another, their pledge, or their garnishment pursuant to Section 25 of that Law;
(10)Providing a guarantee or extending a loan; and where express authorization to extend a loan has been given — in an amount exceeding the amount set in the power of attorney or in an amount exceeding 100,000 new shekels, whichever is lower;
(11)An undertaking to perform any of the acts listed in paragraphs (1) through (10).
(d1)The Minister, with the approval of the Knesset's Constitution, Law and Justice Committee, may prescribe categories of assets of the principal, categories of acts with respect to assets of the principal, or other circumstances, in connection with which the attorney-in-fact shall be authorized to perform on behalf of the principal a legal act from among those listed in subsection (d), without prior approval having been granted pursuant to the provisions of that subsection.
(e)
(1)Without derogating from the provisions of subsection (a), the powers vested in a guardian pursuant to the list of enactments set out in the Second Schedule shall also be vested in an attorney-in-fact, with the necessary modifications and subject to the conditions to be prescribed in that Schedule, provided that such power is included within the matters delegated to the attorney-in-fact in the enduring power of attorney, and subject to the instructions set out in the enduring power of attorney.
(2)The Minister, after consultation with the Minister responsible for the implementation of an enactment and with the approval of the Knesset's Constitution, Law and Justice Committee, may amend the Second Schedule by order.
(e1)Without derogating from the provisions of subsection (a), the provisions of Section 47a with respect to a guardian shall also apply to an attorney-in-fact.
(f)Notwithstanding the provisions of Sections 5 and 16 of the Agency Law, an attorney-in-fact shall be authorized to appoint an agent for the purpose of representing the principal in legal proceedings, and with respect to property matters — the attorney-in-fact shall be authorized to appoint an agent to exercise powers from among those conferred upon the attorney-in-fact in the power of attorney — all subject to the instructions set by the principal in the power of attorney and to the orders of the court as referred to in Sections 32kz and 32kh; however, an attorney-in-fact shall not be authorized to appoint another attorney-in-fact pursuant to the provisions of this Chapter.
(g)The provisions of Section 48 shall apply, with the necessary modifications, with respect to a legal act between the principal and the attorney-in-fact, the attorney-in-fact's spouse, or the attorney-in-fact's relatives, and with respect to a legal act between two principals who have appointed the same attorney-in-fact; however —
(1)If both principals have expressly authorized the attorney-in-fact in the power of attorney to represent them in a legal act between them, the attorney-in-fact is authorized to represent them even without approval as referred to in that Section;
(2)The attorney-in-fact is authorized to represent the principal with respect to a legal act between them, without approval as referred to in that Section, if the attorney-in-fact is a relative of the principal and maintains a joint household with the principal, and the principal has expressly authorized the attorney-in-fact with respect to an act connected to the day-to-day management of the joint household.
Obligations of the Attorney-in-Fact
32g.
[Amendment: 5776]
(a)An attorney-in-fact is obligated to act with diligence, skill, dedication and without negligence, and to conduct himself in good faith for the protection of the principal's interests and not for the benefit of his own interests.
(b)Without derogating from the provisions of Section 32t, a professional who has been appointed as attorney-in-fact in order to apply his professional skills shall act with dedication and professionalism as a professional would exercise toward a client.
(c)The provisions of Section 57 shall apply with respect to an attorney-in-fact, with the necessary modifications.
Modes of Operation of an Attorney-in-Fact
32h.
[Amendment: 5776]
(a)In the discharge of his duties and the exercise of his powers, an attorney-in-fact shall act in accordance with the following principles:
(1)Preserving the dignity of the principal, in a manner that restricts the principal's rights and liberty to the least possible extent;
(2)Preserving, to the extent possible, the privacy of the principal;
(3)In a manner that enables the principal to realize his abilities and to maintain the maximum possible independence, in accordance with the principal's capabilities.
(b)Upon the entry into force of the power of attorney, the attorney-in-fact shall explain to the principal what the attorney-in-fact's duties and powers are, in plain language and in accordance with the principal's capacity for understanding, and if the principal is a person with a disability — while making use of assistive aids available to the principal or in any other reasonably practicable manner in the circumstances of the matter.
(c)The attorney-in-fact shall provide the principal with information in the attorney-in-fact's possession regarding the principal's personal and property affairs and information relating to the attorney-in-fact's management of the principal's affairs, in language comprehensible to the principal and in accordance with the principal's capacity for understanding, and shall assist the principal in accessing other information pertaining to the principal's affairs or required for the purpose of making decisions in matters concerning the principal.
(d)The attorney-in-fact shall assist the principal and shall encourage the principal to make decisions independently in matters concerning the principal, to the extent the principal is capable of doing so.
(e)The attorney-in-fact shall act in a manner that enables the principal to preserve the principal's cultural and religious values, and shall also assist the principal in participating in community life, including in social, cultural, rehabilitative, and occupational activities.
(f)The attorney-in-fact shall act in a manner that enables the principal to maintain relationships with family members and friends.
(g)The attorney-in-fact shall consult, as necessary, with professional parties, family members, and close friends of the principal, and shall avail himself of their assistance for the purpose of advancing the principal's affairs.
(h)An attorney-in-fact, including an attorney-in-fact appointed for a person whose condition and capacity for understanding fluctuate from time to time or from matter to matter, shall act in the discharge of the attorney-in-fact's duties with due regard to changes in the principal's condition or understanding, including with respect to hearing the principal's views, consulting with the principal, taking the principal's wishes into account, and encouraging the principal to make decisions and to manage the matters concerning the principal independently at times or in matters in which the principal is capable of doing so.
Modes of Decision-Making in the Principal's Affairs
32i.
[Amendment: 5776]
(a)The attorney-in-fact shall hear the principal's view, involve the principal in every matter and decision concerning the principal, and consult with the principal, if the principal's view can be ascertained; for this purpose the attorney-in-fact shall provide the principal with the information the principal requires, including the nature of the matter that is the subject of the decision or act, the possible alternatives, the advantages and disadvantages of each, and the attorney-in-fact's recommendation, if any, and the reasons underlying it; for the purposes of this Section, "the principal's view can be ascertained" and "capable of understanding the matter" — including after the principal has been provided with information in the manner referred to in subsection (g).
(b)In making decisions in matters within the attorney-in-fact's authority, the attorney-in-fact shall act as follows:
(1)If the principal has given advance directives in that matter — in accordance with the advance directives, subject to the provisions of Division F;
(2)If the principal has not given advance directives — in accordance with the principal's wishes, if the principal's view can be ascertained and after the principal has been provided with information as referred to in subsection (a);
(3)If the principal's view cannot be ascertained — in accordance with the principal's wishes as expressed at a time when the principal was capable of understanding the matter, or as can be inferred from the power of attorney or from the principal's past conduct, and also with regard to the principal's worldview and way of life as they were in the past;
(4)If the principal's wishes cannot be determined — the attorney-in-fact shall act in accordance with the principal's best interests and while adopting the modes of action set out in Section 32ח.
(c)Notwithstanding the provisions of this Section, the attorney-in-fact shall not act in accordance with the wishes of a principal who has not given advance directives if the attorney-in-fact considers that the act or decision will cause the principal substantial harm; where a person has given advance directives, the provisions of Division F shall apply.
(d)A principal may expressly provide in the power of attorney, with respect to a specific matter or to all matters covered by the power of attorney, that the principal requests the attorney-in-fact to prefer the principal's earlier wishes as expressed in advance directives or in another manner set by the principal (in this subsection — "prior wishes") over the principal's wishes after the principal has ceased to be capable of understanding the matter; where the principal has set such a provision, the attorney-in-fact shall act, in matters included in the provision, in accordance with the principal's prior wishes, after having personally attempted, or attempted through family members and other persons, to reach agreement with the principal regarding the decision or act prior to the advance directive in question.
(e)Notwithstanding the provisions of subsection (d) —
(1)In a matter that is personally material to the principal, the attorney-in-fact shall not act contrary to the principal's wishes if the principal objects thereto at the time of the act or in close proximity thereto;
(2)In a matter that is medically material to the principal, the attorney-in-fact shall not act contrary to the principal's wishes if the principal objects thereto at the time of the act or in close proximity thereto.
(f)The attorney-in-fact may apply to the court for instructions in accordance with the provisions of Section 32kz, in the circumstances referred to in subsections (c) through (e).
(g)Information and explanations that an attorney-in-fact is required to provide to the principal pursuant to this Section and pursuant to Section 32ח shall be provided to the principal in plain language in accordance with the principal's capacity for understanding, and if the principal is a person with a disability — while making use of assistive aids available to the principal or in any other reasonably practicable manner in the circumstances of the matter; nothing in the provisions of this subsection shall derogate from the provisions concerning accessibility accommodations pursuant to the Equal Rights for Persons with Disabilities Law, as required of a person providing a public service as the meaning thereof in that Law.
Condition for Acting Under a Power of Attorney
32j.
[Amendment: 5776]
Where the principal is a person who is incapable of understanding the matter for which the power of attorney was given, an attorney-in-fact may act pursuant to it only if the power of attorney is an enduring power of attorney in respect of which a deposit approval from the General Guardian has been issued pursuant to Section 32iz and an approval of receipt of notice of its entry into force has been issued pursuant to Section 32it, and subject to the provisions of this Law.
Protection of Third Parties
32ja.
[Amendment: 5776]
(a)The provisions of Section 6(b) of the Agency Law shall apply to an act performed without the principal's authorization or in excess of the enduring power of attorney vis-à-vis a third party; the court may ratify the act retroactively if the principal has consented thereto.
(b)Notwithstanding the provisions of subsection (a), where there is a defect in the appointment of an attorney-in-fact, an act performed by an attorney-in-fact pursuant to an enduring power of attorney shall be valid, provided that it was performed in relation to a person who acted in good faith and for consideration, and provided that a deposit approval from the General Guardian has been issued in respect of the power of attorney pursuant to Section 32iz and an approval of receipt of notice of its entry into force has been issued pursuant to Section 32it.
Remuneration and Expenses of an Attorney-in-Fact
32jb.
[Amendment: 5776]
(a)An attorney-in-fact shall be entitled to receive remuneration for the performance of his duties from the principal's assets, if the principal has so stipulated in the power of attorney, in the amount of remuneration specified in the power of attorney.
(b)An attorney-in-fact may deduct from the principal's assets the reasonable expenses he has incurred in the exercise of his powers pursuant to the power of attorney.
Need to cite this law in a foreign court?
Eli Shimony Israeli Attorneys-at-Law provides certified Expert Legal Opinions on Israeli law within 24–48 hours, accepted by courts worldwide.
Contact Us →