You’ve planned everything: the mortgage, the investments, the insurance.
But there’s one thing most people postpone — writing a will. “We’ll figure it out,” “We’re all family,” “It’s too early.”
Until the day comes when the law decides for you.
In Israel, when a person passes away without a will, an automatic mechanism of inheritance by law (“intestate succession”) takes effect.
It’s simple, uniform — and sometimes disastrous for family wealth.
In General
If there is no will, the estate is divided according to the Israeli Inheritance Law:
the spouse inherits the household movables (including the car) and a portion of the estate — usually half if there are children. The remaining share is distributed among other relatives by degree of kinship.
This is not a “fair” division — it’s an automatic one that ignores your personal wishes, family dynamics, and sensitivities.
And what about a common-law (unmarried) partner?
They too may be recognized as an heir, as if married — if certain conditions are met (shared life, common household, neither party married to another, and no will stating otherwise).
In other words, even without a formal marriage, a partner may legally inherit as a spouse.
A will, on the other hand, is your personal roadmap.
You decide who receives what, under what conditions — preventing forced co-ownership, rushed sales, and costly disputes.
Three Real-Life Examples
“The Family’s House” — When the Market Decides for the Family
Dina, a widow, and her four children inherited the family home.
By law, half went to Dina and the other half to the children in equal parts.
One son needed cash and pushed for a quick sale.
The result: a forced co-ownership between mother and children, which ended in a hurried sale 20% below market value just to “resolve” the dispute.
A properly drafted will granting Dina a lifelong right of residence — or an internal buy-out clause between siblings — would have preserved the asset or allowed a sale at the right time.
(Note: the spouse also receives the household movables and car, further reducing the immediate “cash pool” available for division.)
“The Quiet Takeover” — A Wealthy Widower, a Young Partner, and a Family Business
Amir, a successful entrepreneur, was widowed years ago and later lived with a younger partner as a common-law spouse.
He left no will.
After his passing, she was recognized as a legal heir — like a married spouse — and received half of the estate, including shares in the holding company.
The children, who shared the other half, were left with smaller stakes and no controlling majority.
The partner used her voting rights to change management and sell a key asset.
The family ended up in lengthy and costly litigation, which concluded with the company’s sale to an outside buyer.
In plain terms: the absence of a will allowed the partner to enter the automatic division of the estate and gain control over strategic assets.
With a proper will and prenuptial agreement (or updated company articles), the family could have maintained control and ensured an orderly transfer to the next generation.
“Three Brothers, One Property” — Forced Partnership Ends in Lost Value
Three brothers inherited an income-producing commercial building.
One wanted cash; the others wanted to keep the asset.
The disagreement led to a forced partition and a quick sale to a speculative buyer — at 30% below appraised value.
A will and a company bylaws article (article of association) could have defined exit mechanisms (buyout rights, internal sale, valuation formula, lock-up period), or allocated assets differently (“Brother A gets the property, Brother B receives cash or another asset”).
The result: value preserved, no unnecessary lawsuits.
So What’s the Difference — and Why Does It Matter?
Inheritance by Law
- Automatic division based on family relationship (spouse, children, parents, etc.)
- The spouse receives household movables (including the car) plus a portion of the estate.
- Common-law partners may be recognized as heirs if no will exists and legal conditions are met
- Practical outcome: forced partnerships, rushed sales, loss of business control, and diminished family wealth.
A Will
- You decide who inherits, what they receive, under what conditions, and how key assets (home, business, income property) are managed
- You can establish rights of residence, decision-making and exit mechanisms, company governance provisions, and trusts
- Substantially reduces disputes, delays, and costs
The Bottom Line: Don’t Leave Your Legacy on “Auto-Pilot”
Inheritance by law is designed for situations where no decision was made.
But when it comes to a home, a business, or an income-generating asset, not deciding is a decision — a decision to give up control and risk the family’s wealth and relationships.
A well-drafted will is a short document with long-term impact — it protects your property, your family harmony, and your intent.
It’s recommended to prepare an updated will and consider complementary tools — such as trusts, shareholder agreements, company bylaws, and exit mechanisms — as part of a comprehensive family wealth plan.
The information above is for general educational purposes only and does not constitute legal advice. Each case requires professional review according to its circumstances.
