The Israeli Inheritance Law contains several mandatory provisions that override the parties’ agreement, even where that agreement has been executed in writing and in a formal manner. Below are a few illustrative examples.
Reuven and Shimon are brothers. Levi is their father. Reuven owes Shimon USD 500,000. To secure repayment of the debt, Reuven signs an agreement undertaking to transfer to Shimon all of his rights in his father’s future estate.
Is Reuven’s undertaking legally enforceable?
Section 8(a) of the Inheritance Law provides:
“An agreement concerning the estate of a living person, or a waiver of a person’s future inheritance made during that person’s lifetime, shall be void.”
Accordingly, if Reuven later refuses to honor his undertaking, Shimon will not be able to enforce the agreement through legal proceedings.
Is there another lawful way for Shimon to secure repayment of the debt?
Yes. A differently structured contractual undertaking could comply with the requirements of Israeli law, as established by the Supreme Court in CA 682/74 Yekutiel v. Bergman.
Abraham, an 80-year-old man, is in love with Sarah, who is 30 years old. Wishing to ensure that Sarah remains with him for the rest of his life, Abraham signs a written undertaking promising that ILS 1 million will be paid to Sarah from his estate if she remains by his side until his death.
Following Abraham’s death, Sarah demands payment. His heirs refuse, arguing that the undertaking is invalid because it violates Section 8(b) of the Inheritance Law, which provides:
“A gift intended to vest in the recipient only after the donor’s death shall be valid only if made by will in accordance with the provisions of this Law.”
Who is legally correct—the heirs or Sarah?
