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Succession Orders Vs Grants of Probate

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Are You The Heir To Unclaimed Israeli Property?

Israeli inheritance law allows any heir to decide not to inherit their share of an estate. The act of Inheritance Repudiation, although seemingly simple, requires compliance with conditions determined by law. Want to know exactly what those conditions are, who can repudiate an inheritance and when, how to submit an affidavit of repudiation of inheritance, and what is the biggest advantage of inheritance repudiation? Keep reading.

Table of Contents

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What is an Affidavit of Repudiation of Inheritance?

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An affidavit of repudiation of inheritance is essentially a partial or complete waiver document by which a person repudiates their share in an inheritance. By signing and submitting the affidavit of repudiation of inheritance to the relevant Inheritance Registrar (or to the court to which the matter was transferred), the person is regarded as if they were never determined, from the outset, as an heir of the deceased, in regard with the part of the inheritance they repudiated.

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Who can repudiate an inheritance?

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Any heir can repudiate their share in an inheritance. However, if the heir who wishes to repudiate is a minor (under the age of 18) or legally incompetent, they can only repudiate after obtaining approval from the court.

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When can one repudiate an inheritance and what is the advantage of repudiation?

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An heir is allowed to repudiate their share in an estate, following the death of the testator, as long as the assets have not yet been distributed. The advantage of repudiation is that the heir is relieved from any obligations, debts, or responsibilities associated with the inheritance. In other words, there is usually a small window of opportunity to repudiate the inheritance and enjoy the benefits it offers. By repudiating their share, the heirs avoid any potential liabilities, such as tax exposure for the transfer of assets, or other complications that may arise from being an heir. The repudiation also provides exemption from transferring real estate properties (apartments, land, etc.) as well as from transferring valuable movable assets (property, money, etc.). If, instead of repudiating their share in the inheritance, a person decides to inherit their share through succession, and later transfers the inherited share to a sibling of the deceased, this transfer may be subjected to tax, as it is considered a transaction for the transfer of assets

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What are the reasons for repudiating an inheritance?

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There are many reasons why heirs may choose to repudiate an inheritance. A common reason is conditions set by the testator in their will that the heir is not willing to fulfill. The testator can establish certain conditions in their will, and as long as these conditions comply with legal requirements and stand within reason, the heir cannot inherit their share in the estate before these conditions are fulfilled. In such a situation, when the heir is not willing to fulfill the conditions set by the testator, they would often prefer that someone else fulfills the conditions and inherit their share. Another common consideration for repudiating an inheritance may be a sentimental one, the desire to benefit another person, often a family member, who may be in greater need of that share of the inheritance. For example, when one parent passes away and the other parent is still alive but there is no will, the inheritance is divided according to the Inheritance Law, which stipulates an equal division between the surviving parent and the children. In such a situation, it is common for the children to repudiate their share of the inheritance and leave the entire estate to the surviving parent.

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Can an inheritance be partially repudiated?

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In the event that an heir is not interested in inheriting their share of the estate, they have the ability to repudiate their entire inheritance (complete repudiation) or repudiate a specific part of their inheritance that they are not interested in (partial repudiation). Partial repudiation can also be a specific percentage of their inheritance. For example, the heir may repudiate 30% of their share of the inheritance, or 30% of a specific property they are entitled to. However, repudiation of a specific part of the inheritance is not possible when a property was not specifically identified in the will, or when the inheritance takes place without a will, by virtue of the provisions of the Inheritance Law.

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Who can repudiate an inheritance?

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An heir can repudiate their inheritance for the benefit of all the heirs (general repudiation) or for the benefit of a specific individual (specific repudiation). If the heir performs a general repudiation, their share in the repudiated part will be divided among the other heirs as if the person repudiating was not an heir to begin with. On the other hand, specific repudiation can only be for the benefit of the testator’s siblings, spouse, or children, whether they are heirs or not. Specific repudiation cannot be made for the benefit of any other person outside this list, not even a parent of the testator.

However, as a result of the Gaza War (Iron Swords; 2023), the Inheritance Law was amended, expanding the list of family members for whom repudiation of a part of the estate could be made, but limiting it to heirs of individuals who perished in the war. The amendment to the Inheritance Law now allows heirs to repudiate their inheritance for the benefit of the testator’s siblings, spouse, children, former spouse and a child whom the testator recognized as their own.

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The “Affidavit of Repudiation of Inheritance” Form

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The affidavit of repudiation of inheritance should be submitted to the Inheritance Registrar, unless the matter has been transferred to the Family Court, in which case the declaration should be directly submitted to the court. The repudiation takes effect from the moment the affidavit is submitted, and no further approval is required for the repudiation to be executed. The exception to this rule is that the repudiation of a minor or a legally incompetent person requires approval from the court, due to their restricted incompetency to make legal decisions or enter into legal agreements.

In the affidavit, it is necessary to specify the type and extent of the repudiation, and in the case of a specific repudiation, the identity of person benefitting from the repudiation must be clearly stated, and in accordance with the list of family members for whom repudiation could be made.

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Can repudiation be canceled?

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By default, an affidavit of repudiation of inheritance is valid from the moment it is submitted as a legal document, and cannot be rescinded. In fact, the person who submits the affidavit is not considered an heir at all and does not enjoy any legal claim to the estate. Nevertheless, there are two exceptions to this rule that allow for a cancellation of the repudiation:

  1. Misrepresentation or Fraud: A request for revocation of repudiation may be submitted by the person who submitted the affidavit of repudiation, or if they passed away after the repudiation, by their heirs, provided that the decision to repudiate was based on a misrepresentation or fraudulent representation of the facts made to the heir by another person. For example, if the heir was promised that in exchange for repudiation of the inheritance, they would receive something in return, and following the repudiation it became clear that they were deceived.
  2. Lack of good faith by the heir: The court is authorized to cancel a repudiation of inheritance that was made in bad faith, for example, to evade payment of the deceased’s debts or personal obligations. Court rulings clearly state that when a foreclosure decree is imposed on a part of an heir’s inheritance due to existing debts, they cannot repudiate that part of the estate in an attempt to shield it from creditors.
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Is it advisable to consult with an attorney before repudiating an inheritance?

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By default, an affidavit of repudiation of inheritance is valid from the moment it is submitted as a legal document, and cannot be rescinded. In fact, the person who submits the affidavit is not considered an heir at all and does not enjoy any legal claim to the estate. Nevertheless, there are two exceptions to this rule that allow for a cancellation of the repudiation:

  1. Misrepresentation or Fraud: A request for revocation of repudiation may be submitted by the person who submitted the affidavit of repudiation, or if they passed away after the repudiation, by their heirs, provided that the decision to repudiate was based on a misrepresentation or fraudulent representation of the facts made to the heir by another person. For example, if the heir was promised that in exchange for repudiation of the inheritance, they would receive something in return, and following the repudiation it became clear that they were deceived.
  2. Lack of good faith by the heir: The court is authorized to cancel a repudiation of inheritance that was made in bad faith, for example, to evade payment of the deceased’s debts or personal obligations. Court rulings clearly state that when a foreclosure decree is imposed on a part of an heir’s inheritance due to existing debts, they cannot repudiate that part of the estate in an attempt to shield it from creditors.
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Questions and Answers

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Yes. A person who is an heir by virtue of a will or by Inheritance Law rules and regulations is not obligated to accept an inheritance. The act of refusing to accept an inheritance is called Inheritance Repudiation.

A repudiation of inheritance is carried out by submitting an affidavit of repudiation of inheritance to the inheritance Registrar or to the court to which the matter was transferred.

No, if an heir wants to repudiate for the benefit of a specific person, they can only repudiate in favor of individuals appearing on a closed list of family members specified by law. Typically, the heir’s siblings, spouse, or children. However, during the Gaza War (Iron Swords;2023), this list was expanded for the benefit of family members of fallen soldiers.

Yes, an heir is not obligated to repudiate their entire share of the estate, and may choose to repudiate a specific part or a percentage of the assets.

Repudiation is an action which is exempt from taxation. By contrast, a transfer of ownership of the same assets to a third party may be taxed.

Inheritance repudiation must occur after the death of the testator and before the actual distribution of the assets of the estate. If it is a specific repudiation, it must be in favor of an individual on the closed list of family members specified by law. The affidavit of repudiation of inheritance must meet certain conditions. For example, it should indicate whether it is a full or partial repudiation, and in case of partial repudiation, the desired percentage of repudiation, or the specific assets which the heir would like to repudiate.

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Disclaimer 

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All of the above does not constitute legal advice or a substitute for legal advice, and all information contained on the site serves as general information only. The aforesaid does not replace information provided by an attorney, and the reader should contact and consult with an attorney who specializes in the field before taking any legal action. Anyone who relies on the above in any way does so at his own risk, and the responsibility for any direct or indirect result due to reliance on the aforesaid will apply to the user only.

To Find Out More, Contact us:

office@asinheritancelaw.com

+ 178 62337694 (New York)

+972 48331212 (Israel)

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