Israeli succession Law and inter vivos trusts

Israel's Succession Law 1965 is considered a relatively flexible statute in respect of the ability of testators to bequeath their estates. For example, the Succession Law does not prescribe forced heirship rules, as is common in many other jurisdictions, essentially freeing the testator to bequeath his estate, according to his own volition, without extrinsic limitations. Conversely, the Succession Law is considered to be extremely rigid in prescribing the form and manner by which an estate can be lawfully devolved. The Succession Law sets out four forms of wills that are recognized as valid: (i) a handwritten will, which is written entirely by the testator's own hand; (ii) a will made in the presence of two witnesses; (iii) a will made before an authority (e.g. a Judge, an Israeli Notary, etc), and (iv) an oral will, which may be executed by a person on his deathbed. Accordingly, when creating inter vivos trusts, it is important to ensure that such trusts shall not be considered as part of the estate of the settlor as a result of infringing the prohibitions included in the Succession Law. This article provides a brief overview of certain guidelines to be complied with in the course of creating and administering inter vivos trusts, in order for such trusts to continue to exist and to give effect to the purposes for which they had been created following the demise of the settlor.