Inherited Real Estate Versus Lifetime Transfers of Real Estate Property in Israel: How to transfer inherited, gifted, and purchased real estate into your name
Inherited and Transferred Real Estate Property: A Short Summary of Important Points You Need To Know About the Process
1) Why Do You Need To Verify the Information With An Attorney
You will need to verify everything with a real estate law firm because of various tax implications that need to be monitored.
a) There is no inheritance tax in Israel, but there can often be US combined gift and inheritance tax on high net-worth individuals. By contrast, if you are selling rather than inheriting your real estate property, significant transfer and capital gains taxes can apply under Israeli law.
However, it is better to talk things over with one of the better real estate law and tax professionals Israel has to offer. They will guide you in the right direction.
There are also discounts and exemptions for transfers dependent spouses and children as well as other close relatives.
Once again, there are usually tax implications that need to be considered, so talk it over with your tax professionals.
2) What documents do you need from the courts to verify the authenticity?
For inheritance matters, you need a probate or inheritance order from the Registrar of Inheritances. For a sale, you will need a sales contract and valid title registered with TABU, the Israel Land Registrar. For either kind of transfer, you need to be sure that title to the real estate is validly transferred in the Israel Land Registry for your district. Regarding probate proceedings, there may be complications as you go through probate proceedings, including competing claims by potential and actual heirs. The difficulty of probate also may depend on the will and how it was drafted, so it is worthwhile paying close attention to the drafting of your Israeli will, as well as how that will dovetails with US trust instruments and foreign wills.
Above all, two of the most common problems for real estate in Israel involves lack of zoning permits for the use sought for the property and complications in title to the real estate property. Both zoning and title issues need to be examined carefully as well.
For tax purposes, the issue of appraisal of the property will affect tax treatment as well in many cases, and this needs to be carefully addressed by a qualified real estate appraiser.
You will need to talk to a real estate law firm about the other documents you may need and when.
3) What is the next step?
You will need to talk to the real estate law firm about any questions or concerns you have during the process.
4) How long does the process take to resolve?
That depends on the situation and the type of property you inherited or seek to transfer as well as the vagaries of the Israeli real estate legal system. While some real estate matters require more time than others, if you wish to know the detailed process, you can get more information by speaking to us, the federated attorneys associated with the David Page Law Firm. Call us at +972.544.636.824.