Does a US revocable living trust avoid Israeli probate for my Israeli assets?

A US revocable living trust is built to keep American assets out of probate, and for US-situs property it works. It does not carry the same effect over the border. Israeli assets, an apartment, a bank or brokerage account, land, generally still need an Israeli succession order (tzav yerusha) or, where there is a will, a will execution order (tzav kiyum tzava'a) before title can move. Israel does recognise trusts under the Trust Law 1979, but the Land Registry and Israeli banks act on Israeli succession proceedings, not on a US trust document. Placing Israeli assets in a US trust often adds a layer rather than removing one.

---

Detailed Explanation

The reason is jurisdictional. A revocable living trust avoids US probate because the assets are titled in the trust during life, so on death they pass under the trust deed without a US court. That logic depends on the local registry or institution accepting the trust as the owner. For Israeli real estate, the controlling register is the Land Registry (Tabu), and it transfers title on the strength of an Israeli succession or will execution order naming the heirs, not on a foreign trust instrument it has no mechanism to verify or enforce. The same is true of Israeli banks, which release a deceased account holder's funds against an Israeli order.

The conflict-of-laws rules reinforce this. Under Section 137 of the Succession Law 1965, succession is in principle governed by the law of the deceased's domicile at death, but Israeli immovable property is treated under the law of its location where that law so requires, and Israeli practice routes the transfer of Israeli-situs assets through the Israeli succession process. So even a US-domiciled person whose worldwide estate is organised through a trust will, in practice, find that the Tel Aviv apartment or the Bank Leumi account is dealt with by an Israeli order. The trust may dictate who ultimately benefits, but the Israeli machinery still has to run.

There is a further wrinkle that catches American planners. Funding an Israeli asset into a US trust during life, retitling the apartment into the trust's name, can itself trigger Israeli formalities and tax events and is not always achievable at the Land Registry without local steps. The cleaner approach for many cross-border families is a separate Israeli will dealing only with the Israeli assets, coordinated with the US plan so the two do not contradict each other, which is the structure we recommend in our guide to a separate Israeli will for non-residents. The administration itself can be run remotely, as we explain in administering an Israeli estate from abroad.

In Practice: Under Sections 137 to 138 of the Succession Law 1965, Israeli-situs assets are transferred through an Israeli succession or will execution order, and the Trust Law 1979 does not let a foreign trust deed substitute for that order at the Land Registry (Tabu) or an Israeli bank. Obtaining a will execution order from the Inheritance Registrar (Rasham HaYerushot) typically takes about 3 months when uncontested, with lawyer fees commonly NIS 8,000 to NIS 20,000 for a non-resident estate, on top of any US trust administration.

Key Considerations

• A US revocable trust avoids US probate but not Israeli succession proceedings.
• Israeli real estate and bank accounts transfer on an Israeli order, not a trust deed.
• Israel recognises trusts under the Trust Law 1979, but registries still require Israeli orders.
• Funding an Israeli asset into a US trust can itself trigger Israeli formalities and tax.
• A coordinated separate Israeli will is often cleaner than relying on the trust for Israeli assets.

When to Consult a Lawyer

This question typically requires professional legal advice when:

• You hold Israeli real estate or accounts and assumed your US trust would cover them.
• You are considering retitling an Israeli asset into a US trust during your lifetime.
• Your US and Israeli estate documents may conflict over the same Israeli assets.

A qualified Israeli inheritance lawyer should coordinate with your US estate planner so the Israeli assets are handled without contradicting the trust.

---

Speak With an Israeli Attorney

We coordinate Israeli estate planning with US living trusts, draft separate Israeli wills for Israeli-situs assets, and obtain the succession and will execution orders that registries and banks actually require.

Contact us for a confidential initial consultation.