An enduring power of attorney in Israel allows an adult to decide who will handle their affairs, and how, if they later become unable to understand the matter concerned. It may cover personal, medical and financial matters. The person making it must understand the document’s meaning, purpose and consequences.
This guide focuses on: understanding an Israeli enduring power of attorney and the decisions to consider before preparing one. For more specific planning issues, see our guides to enduring powers of attorney for property owners and common family wealth planning mistakes.
Who should consider an enduring power of attorney?
Advance planning gives you time to discuss your wishes, consider suitable representatives and ask questions. Age, a diagnosis or a physical disability alone does not determine whether someone can prepare the document. The relevant understanding must be assessed, with appropriate accommodations where needed. For a focused timing decision, see when to prepare an enduring power of attorney.
Planning can be useful even without a business or property portfolio: living arrangements, medical preferences, family contact and everyday banking still matter. For property and business owners, continuity of management adds another layer.
What should the planning cover?
Personal and medical matters
Discuss daily routines, living arrangements, support and medical preferences. Explain what matters to you and whom you would want involved, subject to the law. Decisions governed by Israel’s Dying Patient Act use separate documents; an enduring power of attorney does not automatically replace them. See the Ministry of Health’s advance medical directives service (Hebrew).
Property and financial matters
Prepare an overview of accounts, liabilities, property and business interests, together with the needs those resources must support. Practical questions include where rental records are kept, who can help review accounts and which regular expenses require attention. These planning questions do not themselves authorise transactions.
Some actions require express authority and others need approval under the applicable law. Before a property transaction, gift, loan or unusual financial action, check the document and the current approval procedure. See the Administrator General’s financial transaction approval service (Hebrew).
How do you choose a representative?
Trust is essential, but availability, practical ability, willingness to accept responsibility and relationships with other family members also matter. The proposed representative must meet the legal requirements and agree to the appointment.
- Responsibilities: Is one person suitable for every area, or would a division of roles work better?
- Joint decisions: If several people are appointed, how will they coordinate and address disagreements?
- Continuity: Who could act as a substitute if the first choice becomes unavailable?
- Transparency: Who should receive updates, on which matters and how often?
Discuss potential personal interests, such as a representative who is also a business partner. Broad wording does not necessarily resolve a conflict of interest. The Administrator General’s guide for representatives explains the role (Hebrew).
Preparing and depositing the document
- Map the situation: Discuss wishes, family circumstances, assets, liabilities and existing documents.
- Choose representatives and instructions: Address responsibilities, decision-making, substitutes and reporting.
- Prepare and sign: A document covering property matters requires an attorney who has completed the Administrator General’s training, subject to the legal conditions.
- Complete the deposit: Obtain confirmation of deposit. Signing and depositing are distinct from bringing the document into effect.
See the official preparation and deposit instructions (Hebrew). Make sure the representatives know where the document is kept and whom to contact when it is needed.
When does it take effect?
Activation depends on the document and the law when the person cannot understand the relevant matter. The representative submits a declaration and the required supporting evidence, such as a medical opinion or another document where an appropriate alternative condition was specified. Applicable notification requirements must also be fulfilled. Deposit alone does not make every power immediately usable. See the official activation procedure (Hebrew).
How does it differ from a will, guardianship and supported decision-making?
A will addresses the distribution of an estate after death. An enduring power of attorney addresses decision-making during the person’s lifetime. The documents should be coordinated, but serve different purposes.
A guardian is appointed by a court. An enduring power of attorney lets a person plan ahead and choose a representative, without guaranteeing that court involvement will never be needed. Supported decision-making helps a person who can make decisions with assistance; the supporter does not replace the person as decision-maker. The Ministry of Health explains these arrangements (Hebrew).
Multiple assets and businesses: when is holistic intergenerational planning needed?
The scope of planning depends on the number of assets, business ownership and the complexity of those businesses. A single apartment and bank account raise different questions from a property portfolio, an operating company or family partnerships. Liabilities, signing arrangements, reliance on the owner and the distinction between ownership and management also deserve attention.
Where circumstances are complex, a full, holistic intergenerational planning process is recommended. This involves reviewing the enduring power of attorney alongside wills, marital agreements, ownership structures and business agreements, with other professional advisers involved where appropriate. The aim is to identify inconsistencies and plan continuity in accordance with the family’s wishes and the law.
For example, a family may own both a business and the premises it rents. Planning should consider who manages each, how competing interests are addressed and what happens if the key individual becomes unavailable. This is an illustration of planning questions. Read about our family wealth management and intergenerational transfer service.
What should you prepare for a meeting?
- Details of proposed representatives and substitutes, and questions to discuss with them.
- A list of assets, accounts, businesses and liabilities, without passwords or access codes.
- Relevant existing wills, marital agreements and business agreements.
- Personal and medical preferences, family needs and sensitive issues requiring coordination.
Frequently asked questions
Do spouses prepare one document or two?
Each person appoints a representative for their own affairs. Planning for a couple should consider each person’s wishes and the possibility that both may need assistance. Alternatives to appointing only each other should therefore be discussed.
Can the document be changed or cancelled?
The options depend on the person’s circumstances, the document and the law. Changes in family relationships, assets or a representative’s availability are reasons for review. Do not rely on handwritten changes to an existing copy; complete the required procedure and notifications. See the official cancellation or expiry notification service (Hebrew).
Is the document enough to manage a company?
Do not assume that a personal appointment alone resolves all company management and signing powers. The company’s documents, agreements and applicable law must also be examined. A business that forms a significant part of family wealth should be considered within the overall plan.
To discuss how an enduring power of attorney fits your family and assets, contact the office of Asaf Arazi-Biton using the contact details on this website.
Disclaimer: The information in this article is provided for general informational purposes only and does not constitute legal advice, a legal opinion, or a substitute for individual advice from an attorney. Each case should be reviewed according to its specific circumstances, and it is recommended to consult an attorney before making any decision or taking action.
