Inheritance Between Spouses — Legal Protection of Your Rights | Attorney Rozil Amir

Inheritance Between Spouses — What You Need to Understand

Inheritance between spouses is one of the most complex issues in family law in Israel. When one spouse passes away, the question of who inherits the assets, how the inheritance is divided between the spouse and other heirs, and what role a prior financial agreement plays — all of these are questions that require in-depth legal counsel and careful planning.

In Israel, the inheritance rights of spouses are governed by the Succession Law, 1965, as well as by personal circumstances, prior agreements (such as a financial agreement or will), and the family status of the deceased. This means there is no "one-size-fits-all formula" — each case requires a unique examination of the circumstances.

Why Is Inheritance Between Spouses So Important?

When one spouse passes away, friction often arises between the surviving spouse and other heirs (children from previous marriages, parents, siblings). Without a clear understanding of rights, a situation may develop where the spouse does not receive the assets they are entitled to, or conversely — there are disagreements about asset division. This is where proper legal planning comes in: a financial agreement, an updated will, or any other legal measure that ensures your wishes are carried out as intended.

What Determines a Spouse's Inheritance Rights?

Under Israel's Succession Law, a spouse inherits according to a set order of heirs. If there is no will, the spouse inherits part of the assets, and other heirs (children, parents) inherit the rest. However, if a will exists, they may inherit more or less, depending on the deceased's wishes. Similarly, a financial agreement signed before or during marriage may completely change inheritance rights.

For example: a spouse married for 20 years, without a will, typically inherits a substantial portion of the assets. However, if there was a financial agreement that established "complete separation of assets", each of them inherits only the assets that were in their name at the time of death.

Types of Agreements and Their Impact on Spousal Inheritance

Prenuptial Financial Agreement

A financial agreement executed before marriage (or at the time of marriage) determines how the assets of the spouses will be treated in relation to each other. There are three main types of financial agreements in Israel: complete separation of assets, partial joint ownership, or customized personal agreements. Each affects spousal inheritance rights differently.

• Complete Separation of Assets: Each spouse holds their assets separately, and inheritance follows this ownership. If Spouse A passes away, Spouse B does not automatically inherit all of their assets, but only those they chose to leave in their will.
• Partial Joint Ownership: Some assets are held jointly, while others are separate. This creates a more complex situation requiring identification of which assets are joint and which are separate.
• Customized Agreement: Different and complex agreements tailored to a specific couple's needs, for example when there are children from previous marriages or shared businesses.

Will as an Inheritance Planning Tool

An updated will is the strongest tool for controlling asset distribution after death. Without a will, distribution is determined by the law of succession. With a will, you can specify exactly who inherits what. This is particularly important between spouses, as it allows you to protect your spouse if you are concerned that other heirs may cause them difficulties.

For example: if you have children from a previous marriage, you can write a will ensuring that your spouse receives the house where they live, while the children receive other assets. Without such a will, conflict may arise.

Durable Power of Attorney — Protection During Loss of Capacity

A durable power of attorney is a legal document that allows your spouse to manage your financial and medical matters if you lose capacity (for example, due to dementia or an accident). This is highly significant in relation to inheritance, as it ensures that your spouse can protect your assets and property while you are still alive, preventing misappropriation or unauthorized asset disposal.

Common Inheritance Scenarios Between Spouses

Every couple is unique, and therefore inheritance rights vary according to circumstances. Below are some common scenarios we handle in our work:

Scenario 1: Couple Without a Will, Without a Marital Property Agreement

If a spouse passes away without a will, and they were not under a marital property agreement, the surviving spouse inherits a portion of the assets according to the Inheritance Law. If there are no children, the surviving spouse typically inherits a substantial share. However, if there are children, the assets are divided between the spouse and the children. This can be problematic if the surviving spouse needs funds for daily living expenses or to maintain the home.

Scenario 2: Couple With a Complete Property Separation Agreement

If there was a complete property separation agreement, each spouse inherits only the assets that were in their name. This can be problematic if the surviving spouse was economically dependent on the deceased spouse. In this matter, the court may order an allowance for the spouse ("survivor's support") if they are in difficult circumstances.

Scenario 3: Couple With Children From Previous Marriages

This is a particularly complex situation. The new spouse wants to protect themselves, but the children from the previous marriages also want a share of the assets. A clear will and a marital property agreement are essential to prevent disputes.

Scenario 4: Couple With a Joint Business

If the spouses have a joint business, the inheritance of the business is a critical matter. A decision must be made whether the surviving spouse will receive the business, or if it will be sold and the proceeds divided. A clear marital property agreement and will are essential.

Practical Steps in Spousal Inheritance Planning

Step 1: Asset Assessment and Family Status Evaluation

In the first step, we conduct a comprehensive review of your assets (real estate, bank accounts, investments, businesses), your family status (spouse, children, parents), and existing agreements (prenuptial agreement, previous will). This helps us understand the complete picture.

Step 2: Selection of Financial Strategy

Based on your assets and circumstances, we recommend a strategy: Do you need a new prenuptial agreement? Is a will sufficient? Do you need a durable power of attorney? This is a personal choice that depends on your priorities.

Step 3: Drafting Legal Documents

We draft the agreement or will according to your choice. Each document is tailored to your circumstances and complies with legal requirements.

Step 4: Signing and Documentation

Every document must be signed correctly and properly documented. For example, a will must be signed before two witnesses, or registered with the competent authority of the Ministry of the Interior.

Step 5: Post-Death Administration

After you pass away, your spouse (or another person appointed as executor) must manage the process of executing the will and opening the estate in court. We can assist you in this process.

Costs and Timelines in Spousal Inheritance Planning

How Much Does Inheritance Consultation Cost?

The cost of inheritance consultation for spouses depends on the complexity of your case. Basic consultation on a will or prenuptial agreement may be relatively affordable, while complex inheritance planning (involving businesses, multiple properties, or multiple heirs) may be more expensive. We offer a free initial consultation to assess your situation.

How Long Does It Take?

Basic inheritance planning can be completed within a few weeks. However, if you need to coordinate with your spouse, clarify complex legal matters, or resolve disagreements, it may take months. We help you plan a realistic timeline.