Israeli Durable Power of Attorney

I am pleased to announce that I have been certified to prepare and authorize Israeli durable power of attorneys.

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Until recently, Israeli law did not enable creating a power of attorney that would survive incapacity. As of May 2017, anyone over the age of 18 can execute a durable power of attorney.  This power of attorney enables you to appoint an agent to handle your financial and general  health decisions, should you become unable to make such decisions.

The Israeli durable power of attorney must be filed online, in Hebrew, by lawyers, certified by the Administrator General’s office.

I am advising clients to sign both the durable power of attorney and the general health power of attorney, under section 16 of the Patient Rights Law, which allows you to appoint an agent to give “informed consent,” if you are unable to do so.

My Israeli Estate Plan Should Include…

A comprehensive Israeli estate plan includes:

  1. An Israeli will (you can have two wills – one which addresses property outside of Israel and one for Israeli assets)
  2. Israeli healthcare power of attorney and/or advanced healthcare directive
  3. Israeli lasting power of attorney (“financial” or “durable” power of attorney)
  4. Financial agreement (הסכם ממון)

Israeli Purchase Tax Rates 2017

Purchase Tax is a tax levied on all purchasers of Israeli residential property, but the rates are different for Israeli residents, new immigrants (Olim) and foreign residents. The new immigrant “discount” isn’t always advantageous, as compared to the Israeli rates; it depends on the price, as you can see from the rates below, so make sure to check!

As of January 16, 2017, here are the rates when purchasing a “sole residence” as defined under Israeli law:

Israeli Residents

0% up to NIS 1,623,320

3.5% on the amount from NIS 1,623,320 and up to NIS 1,925,460

5% on the amount from NIS 1,925,460 and up to NIS 4,967, 445

8% on the amount from NIS 4,967,445 and up to NIS 16,558,150

10% on the amount over NIS 16,558,150

New Immigrants (Olim)

0.5% on the amount up to NIS 1,759,310

5% on the amount over NIS 1,759,310

Foreign Residents (and for purchases of apartments that are not “sole residences” as defined by law)

8% on the amount up to NIS 4,967,445

10% on the amount over NIS 4,967,445

Renting an Israeli Apartment – Finally Some Good News…

Mold, broken a/c in the heat of summer, increasing the monthly rent at the end of the lease, refusing to repair defects….the list of horrors that renters in Israel endure is lengthy indeed.

Yesterday, the Knesset approved a much needed amendment to the Israeli rental law (Law of Rental and Borrowing), in its first reading. The bill still needs to be approved in a second and third reading, before it is passed into law.

The amendment addresses much needed regulation in the Israeli rental market and touches on these subjects:
-Essential elements of contract such as the names of the owner/renter, ID numbers and legal description of the apartment (Block and Parcel Number)
-Owner’s obligations to repair certain defects in the apartment
– Maximum guarantee amount that owner may take (between 3 – 6 months rent depending on whether it is a bank guarantee or security check)

Stay tuned for the final version of the law…

 

Are you the heir to Land in Israel managed by the Israeli Administrator General?

As part of our real estate practice, we handle fascinating cases of heirs to “missing persons,” who purchased land in Israel many decades ago; often in the 30’s and 40’s. During those years, before the creation of the State, parcels of land were sold to Jews in the US, UK and South Africa (among other countries).  Some proud purchasers kept records and told their children and grandchildren, while others may not have paid much attention to the purchase.

With land throughout Israel being developed, the Administrator General becomes involved via a court “management order.” The AG is obligated to search for the heirs of the original owner and facilitate the transfer of the land to those heirs. Sometimes, the heirs approach the AG, and prove their relationship to the original owner. Our office assists the heirs with the numerous probate orders needed; many heirs have usually passed away since the original owner purchased the land.

In addition, we represent the heirs vis-a-vis the AG in the “release” process by negotiating with the Administrator General regarding the management fees and final release of land. Once the land is released and registered in the names of the heirs, we represent them in the sale or development of the land.

The AG now has a list of 17,000 “missing persons” – did anyone in your family ever buy “land” in Israel? Contact our office to check if any of your ancestors are on the list.