Wills and Business Planning — Professional Legal Guidance | Attorney Roziel Amir

Why Is It Important to Plan a Will and Assets for the Future?

A will is not merely a legal document — it is your final expression of how the assets you have accumulated over the years will be distributed. In Israel, the Succession Law, 5725–1965, regulates the process of drafting a will, its approval by the court, and the execution of its provisions. However, without proper legal planning, inheritance can become a complicated, costly, and protracted issue that burdens your family members.

When you consult with a lawyer specializing in wills and estates, you are not simply "writing a will". You are building a comprehensive plan: which assets will pass to which heirs, how to avoid family disputes, how to minimize tax and execution costs, and how to ensure that your instructions are carried out exactly as you envisioned.

A boutique law firm like ours provides personal guidance at every stage: from your initial consultation (where we understand your family and financial situation), through the formulation of the will, to advice regarding capital gains tax, financial agreements, or long-term asset planning.

Wills in Israel — The Legal Framework

In Israel, a will is a written declaration by a person (testator) regarding the distribution of his or her assets after death. The will must comply with legal requirements: signature, witnesses, clarity of intent. There are three primary forms:

• Will Before Witnesses — written before two or more witnesses, who attest that the testator signed it with full knowledge and understanding. This is the most common form.
• Handwritten Will — written entirely in the testator's own hand, signed, and dated. No witnesses are required, but the burden of proof in court is higher.
• Will Before an Authority — deposited with a public authority (for example, a municipality) in the presence of witnesses, with official documentation of its existence.

Following the testator's death, an application for a succession order must be filed with the family court. This order confirms the validity of the will and enables the estate administrator (usually an heir or lawyer) to manage the distribution of assets.

Business Planning and Asset Management — Beyond the Basic Will

If you own a business, invest in real estate, or manage a substantial portfolio of assets, will planning becomes even more critical. Questions such as "Who will receive my business?", "How will the business be valued?", "What will happen to my employees?", "How can we avoid unequal distribution among heirs?" require carefully considered legal and financial answers.

Our firm works with business owners to develop an inheritance plan that preserves the value of the business, protects family members not involved in the business, and ensures operational continuity. This may include agreements regarding asset sales, financial allocations, or a gradual transfer of control.

Steps in the Will and Inheritance Process

To better understand how we work, here is an overview of the typical process:

Step 1: Initial Consultation and Intention Formulation

In the first meeting, we listen to your story: what are your assets, who are your family members, what are your values, and what concerns do you have about inheritance. We do not try to "sell" you a will — we try to understand your situation in depth. At this stage, we also explain the legal requirements and legal implications of various choices.

Step 2: Information Gathering and Legal Analysis

We request detailed information from you: a list of assets (money in bank accounts, real estate, stocks, pension, life insurance), marital status, family members you wish to benefit, and notes on family relationships. Based on this, we analyze the legal implications: who are the statutory heirs, how much capital gains tax is expected, whether a prenuptial agreement or special directives are needed.

Step 3: Draft Formulation and Discussion

We draft a will in accordance with your instructions, and we offer you to review and comment. At this stage, we typically discuss details with the client: should each heir receive an equal share? Are there special directives (for example, funds for grandchildren's education)? Should anything be done regarding a business or real estate?

Step 4: Signing Before Witnesses

When you are satisfied with the will, we organize a formal signing before two witnesses (or more, depending on circumstances). This signing must take place in the presence of the witnesses, and must be done with full understanding. We ensure that the process meets all legal requirements.

Step 5: Storage and Document Management

After signing, we store a copy of the will in our office archives (or we advise you to file it with the court or municipality to ensure it is found easily after your death). We also advise you to notify the heirs or designated estate administrator that the will exists, to avoid confusion after your death.

Step 6: Request for Inheritance Order (After the Testator's Death)

When the testator dies, family members or an estate administrator can request an inheritance order from the court. We handle the submission of the request, defining the heirs, obtaining court approval, and receiving an official order that enables distribution of the assets.

Step 7: Asset Distribution and Closure

After obtaining the inheritance order, we handle the actual distribution of assets: withdrawing money from bank accounts, transferring real estate, selling stocks, etc. We also handle capital gains tax issues and filing documents with the relevant authorities.

Costs and Typical Timeframes

The costs of legal representation in wills and inheritances vary depending on the complexity of the case. A simple will (for example, a small family, basic assets) may cost less than a complex inheritance plan (business, multiple real estate, many heirs). We offer a clear estimate in advance so you know exactly what you are paying for.

The timeframe also varies: drafting a basic will may be completed within a few weeks, while a request for an inheritance order in court may take months (depending on the court's workload and the complexity of the case).

Common Risks and How to Avoid Them

Over many years of representing clients in wills and inheritance matters, we have seen recurring mistakes that can lead to family disputes, high legal costs, or even will revocation. Here are the main risks:

Invalid or Unclear Will

A self-written will ("homemade will") may be invalid if it does not meet legal requirements: signature, witnesses, and clarity of intent. If a court decides the will is invalid, it will be revoked, and assets will be distributed according to the Inheritance Law (not according to your instructions). This could be completely contrary to your wishes.

Additionally, a will written in vague language ("I grant my assets to my family members in a manner they deem appropriate") may lead to family disputes and litigation. The will must be clear and specific.

Failure to Plan for Inheritance Tax

Inheritance tax is a tax levied on assets transferred through inheritance. The rate depends on the asset value and the relationship between the testator and the heir. If not properly planned, heirs may face very high tax liability, which could force them to sell assets to pay the tax. Proper legal counsel can reduce tax liability through wise will provisions or financial agreements.

Family Disputes and Court Claims

When you give more to one child than others, or when you exclude someone who expected to inherit something, it can lead to serious disputes. Family members may file a court claim alleging the will is invalid, was made under duress, or that you lacked mental capacity. Such claims can cost considerable money and time. A will drafted under the supervision of an attorney, with clear explanations for your choices, may protect you from such claims.

Lack of Clarity Regarding Different Types of Assets

If you own a business, real estate, or foreign bank accounts, it is important that your will provide clear instructions on how to handle these assets. For example, if you own a business, who will receive it? Will it be sold or transferred? How will it be valued? A will that does not address these questions may lead to confusion and disputes after your death.

Life Insurance That Does Not Integrate with Your Inheritance Plan

Life insurance is a powerful tool for inheritance planning: the money it pays is not subject to inheritance tax (usually) and does not need to be part of the inherited assets. However, if you do not properly manage the beneficiary designation in your insurance policy (who receives the money after your death), it may conflict with your will. Proper legal counsel ensures that life insurance integrates with your overall inheritance plan.

Comparative Table: Forms of Wills in Israel

Note: Prices are estimates only and may vary depending on case complexity, number of assets, and family status.