Inheritance and Wills for Property Abroad

You buy an apartment in Greece, a house in Portugal or a property in Cyprus, and usually all the attention goes to the purchase itself. The question of what happens to the property when the owners pass away often comes up only after the family is already in the midst of dealing with it.

Inheriting property abroad touches two legal systems: Israeli law, and the law of the country where the property is located. Preparing in advance, and above all checking with a lawyer in the foreign country, can spare the family complex and lengthy proceedings.

Why property abroad is a separate matter

A will made in Israel generally governs your assets in Israel. For real estate in another country, that country's authorities register ownership, and they act under local law and local procedure.

Every country has its own rules: who counts as a statutory heir, whether part of the estate is reserved for certain relatives, which documents are needed to register the heirs, and which proceedings must be completed. It cannot be assumed that what is true in Israel is true there.

Which law applies

Which law governs an inheritance is determined by private international law, and the answer differs from country to country. In many countries, real estate is generally governed by the law of the place where it is located. In others the law is determined by the deceased's residence or nationality, and in some cases the will may choose the applicable law.

Because these rules are complex and change, it is not advisable to rely on a general assessment. The answer for each country is checked with a local lawyer.

Will an Israeli will be recognized

An Israeli will may be recognized in another country, but this is not certain. The document must meet the foreign country's requirements, and sometimes undergo a certified translation and authentication.

Two approaches are commonly considered, and sometimes combined:

• One broad will, reviewed in advance with a local lawyer to confirm it will be accepted in the foreign country.
• A separate will abroad covering the property there, alongside an Israeli will covering the rest of the estate.

A separate will requires careful coordination, so that the wills do not contradict or accidentally revoke one another.

Proceedings after death

Even with a will, a proceeding in the foreign country is usually required to register the heirs as owners. An Israeli probate order or inheritance order does not automatically replace the local procedure. Sometimes it must be presented with an apostille and translation, and sometimes a separate proceeding is required altogether.

Documents usually required in the process:

• A death certificate, sometimes with an apostille and translation.
• A probate order or inheritance order, in certified translation.
• Identity documents of the heirs.
• Documents of ownership of the property.

For more on apostilles and notarial powers of attorney for use abroad, see Notarial Power of Attorney and Apostille.

Questions to ask a local lawyer

• Will the Israeli will be recognized, and under what conditions / in what manner (is a legal proceeding required)?
• Does the local law apply to part of the estate, under which a share passes to certain relatives?
• Which proceedings are required to register the heirs, and who is authorized to conduct them?
• Which documents need an apostille and a certified translation?
• Does the way jointly owned property is registered affect the inheritance?
• Which taxes (inheritance tax, for example) or fees apply in the foreign country? The figures should be obtained from an official, current source.

The list is not exhaustive and is meant to help you prepare for the meeting.

Cases worth planning especially early

• Property co-owned by several siblings or relatives.
• Spouses whose ownership in the property is not identical, or where one is not an Israeli citizen.
• Heirs who live in different countries.
• Property rented to others, which continues to produce income and also needs ongoing management.

In all these cases, the earlier the planning, the less exposure to difficulty in realizing the property for the family.

What to do today

• Locate and gather the documents: the purchase contract, the title extract, the details of the local lawyer and any accounts related to the property.
• Make a will in Israel and make sure it is up to date. A general explanation is available in Writing a Will in Israel.
• Consult a lawyer in the country where the property is located about local law, recognition of the will and registration procedures.
• Check tax aspects: taxation of the inheritance and the property, in Israel and abroad, should be reviewed with a qualified tax adviser against current official sources.
• Consider an enduring power of attorney, so that someone can handle the property if you are unable to. See What Is an Enduring Power of Attorney.

Common mistakes

• Assuming an Israeli will automatically governs the property abroad.
• Making another will abroad without checking how it affects the existing one.
• Keeping the documents and property details with one person only, without the family knowing.
• Postponing planning until the property becomes an urgent issue.

How we can help

The firm assists clients with the Israeli side of the planning: drafting a will, notarial powers of attorney, apostilles, and coordination with a local lawyer in the country where the property is located. Local law itself is always checked with a lawyer in the relevant country.

Learn more about our International Law practice and Wills & Inheritance, or contact the firm.

This article is general information and is not legal advice. Every case has its own circumstances, and consultation is recommended before making decisions.