Several Israeli families wonder what will happen to their farms when their members die. Questions like to who and how their farms are bequeathable, plus what others might get, often arise in these situations. Farms are the main assets of the families, so the Israel Land Authority’s mandate that only a single heir can inherit the property complicates its equitable division among successors. Legislation, contracts, regulations and protocols that are specific to land and the agricultural segment, apply to bequeathing a farm in Israel. Therefore, bequeathing it is more complex than giving an urban Israel real estate property by Will.
Who Can Inherit The Property?
Should the person with the rights to an Israel farm die and when there exist many potential heirs to it, the rights would go to any one of the below parties.
- An heir, when the other potential heirs agree on bequeathing it to him or her.
- A court-designated heir, when an agreement between heirs does not exist.
Israel’s Inheritance Law allows passing these rights to an heir with the will and capability to take care of the property. He or she has to adhere to not just the things that Israel Land Council’s resolutions require but also Israel Land Authority’s procedures. If the legislation finds the heir not eligible to inherit it, they must pass that property to a different successor. That other heir might just take the entitlements subject to ILC’s resolutions, ILA’s procedures, and the Israeli lease agreement.
What Can The Other Successors Without Inheritance Rights Get?
The heir who gets the farm should compensate the others up to the degree that the farm’s value exceeding their estate share. Much of the money that the purchaser of a farm pays the seller will eventually be spent on the mandatory taxes and fees. Therefore, selling it is usually not lucrative for the actual heir.
Inheritance may not be deemed a taxable event, but those who get financial compensation are usually supposed to pay the concerned taxes on the inheritance date. Granted that 70% is the aforesaid taxes and fees’ rate, the other successor would get half of the farm’s gross share.
Conversely, the one who inherits this property is entitled to stay on it for the rest of their life. Besides, the actual heir should pay the taxes and fees on the day they sell the agricultural real estate in Israel.