A grandparent dies in Haifa, leaving an apartment worth NIS 2,500,000 jointly to three grandchildren — aged 8, 12, and 17. The children's parent wants to sell the apartment and invest the proceeds in an education fund. Israeli law gives parents broad authority as natural guardians (apotropusim tiv'iyim) — and then draws a hard line at transactions involving property a minor inherits. Every sale, mortgage, gift, or significant legal act affecting inherited property requires prior approval from the Family Court under Section 67 of the Legal Capacity and Guardianship Law 5722-1962. Without that approval, the transaction is void.
For diaspora families — a grandfather in New York who leaves his Tel Aviv apartment to his grandchildren, or a parent in London whose will names young children as heirs to Israeli assets — this legal framework can come as a surprise. Understanding it early, and planning your estate accordingly, spares the family from delays, legal costs, and frustrating bureaucratic hurdles at an already difficult time.
1. Minors and Property Rights Under Israeli Law
Under the Legal Capacity and Guardianship Law, 1962 (Hok HaKsherut HaMishpatit VeHaApotropsut), a person under the age of 18 is legally a minor and lacks full legal capacity. This means a minor cannot enter contracts, cannot sell property, cannot appear in court proceedings on their own behalf, and cannot independently manage assets — including assets they have inherited.
This is not unique to Israel; most legal systems treat minors similarly. What makes the Israeli system distinctive is the active role of the state, through the Guardian General, in supervising and approving transactions involving minor children's property. This oversight exists to protect children from situations where parents or other adults might make decisions that serve their own interests rather than the child's.
The relevant laws governing this area are:
- Inheritance Law, 1965 — governs who inherits and how; does not restrict inheritance by minors
- Legal Capacity and Guardianship Law, 1962 — defines the authority of natural guardians and the role of the Guardian General
- Family Court (Powers and Procedures) Law, 1995 — the Family Court has jurisdiction over applications involving minors' property
The key takeaway: a minor can be a full heir under Israeli law, but the exercise of rights over that inheritance is controlled — by parents as natural guardians for routine matters, and by the Family Court and Guardian General for significant property dealings.
2. How a Minor Becomes an Heir: Intestate and Testamentary
A minor child becomes an heir in Israel through one of two routes:
Intestate succession (no will): Under the Inheritance Law 1965, children are first-rank heirs. If a parent or grandparent dies without a will, the estate is divided among the deceased's spouse and children. If a grandparent dies and their child (the grandchild's parent) predeceased them, the grandchild steps into their parent's shoes and takes their parent's share — a mechanism called yerusha bederech akhilah (inheritance by substitution). A minor grandchild can therefore inherit a share of an Israeli estate even when the original heir is deceased.
Testamentary inheritance (by will): A person writing an Israeli will can designate a minor as a beneficiary — including a grandchild who is not a first-rank legal heir. There is no legal restriction on naming a minor child as a beneficiary in a will. However, testators should understand that the inherited assets will be subject to guardianship oversight until the child turns 18, unless a trustee arrangement is made (see Section 6).
When the estate is administered and a succession order (tzav yerusha) or probate order (tzav kiyum tzava'a) is issued, the minor's share is noted. The Registrar of Inheritance will record the minor as an heir and will typically require that the assets be placed under appropriate supervision. At this stage, it is important to notify the Registrar that one or more heirs are minors, as this affects the administrative steps required. For more on the basic probate process, see our guide on succession orders in Israel.
3. Natural Guardians: What Parents Can and Cannot Do
Under the Legal Capacity and Guardianship Law, parents are the natural guardians (apotropsim tivi'im) of their minor children. This gives them broad authority to manage the child's day-to-day affairs — including managing money, making decisions about education and welfare, and handling routine financial transactions on the child's behalf.
However, the law draws a clear distinction between ordinary acts and what it calls "extraordinary acts" (pe'ulot yotz'ot dofen). For extraordinary acts involving the child's property, natural guardians cannot act unilaterally — they need either the approval of the Guardian General or the Family Court.
Acts that require court or Guardian General approval include:
- Selling, transferring, or mortgaging real property owned by the minor
- Making gifts of the minor's property
- Waiving or relinquishing the minor's inheritance rights
- Entering into long-term leases (typically beyond one year) of the minor's property
- Investing the minor's funds in ways that go beyond conservative management
- Settling legal claims on behalf of the minor in a way that reduces the minor's entitlements
This restriction catches many families off guard. A surviving parent who inherits jointly with minor children — for example, when a spouse dies and the estate passes to the surviving partner and children — cannot simply sell the family home without court involvement, even if selling is the obvious practical solution. The child's share is protected regardless of how inconvenient that protection may be for the adults involved.
4. The Guardian General (Apotropos Klali)
The Apotropos Klali (Guardian General) is a statutory office within Israel's Ministry of Justice. It serves as the state's guardian and supervisor for two main groups: minors who lack a natural guardian, and minors whose natural guardians need oversight when dealing with the child's significant property interests.
The Guardian General's role when a minor inherits property typically involves:
- Supervising estate administration: When a minor is a beneficiary of an Israeli estate, the Registrar of Inheritance will often notify the Guardian General's office. The Guardian General may monitor how the minor's share is administered and ensure the natural guardians are not acting contrary to the child's interests.
- Approving or objecting to transactions: Before the Family Court approves a sale or other extraordinary act involving the minor's property, the Guardian General is usually given an opportunity to review the proposed transaction and advise the court. The court is not bound by the Guardian General's recommendation, but it carries significant weight.
- Acting as guardian of last resort: Where a minor has no natural guardian — because both parents are deceased, or because a conflict of interest disqualifies the parents — the Guardian General steps in as the child's legal representative for property matters.
For foreign families, there is an important practical point: the Guardian General's office has branches throughout Israel, and correspondence is conducted in Hebrew. Foreign parents or grandparents dealing with the Guardian General almost always need an Israeli attorney to navigate the process and communicate effectively with the office.
5. Selling or Mortgaging a Minor's Inherited Property
This is the situation that most commonly forces families to engage with the Israeli legal system. A grandparent dies, leaving an apartment to their adult children and minor grandchildren. The adult heirs want to sell. The minor's share — even if it is only a fraction of the property — means the family cannot complete the sale without court approval.
The process to obtain court approval for a property transaction involving a minor is as follows:
- File an application with the Family Court. The natural guardian (usually a parent) files an application requesting permission to sell or otherwise deal with the minor's property share. The application must explain why the transaction is in the minor's best interests.
- Serve the Guardian General. The Guardian General must be notified of the application. The Guardian General's representative reviews the proposed transaction and provides a recommendation to the court.
- Court hearing. A Family Court judge reviews the application, the Guardian General's position, and any other relevant factors. The judge is required to act in the best interests of the child — not the convenience of the family.
- Court order. If approved, the court issues an order permitting the transaction on specific terms. The order typically specifies what must be done with the proceeds — for example, depositing them into a dedicated account in the minor's name, or investing them in government bonds, until the child turns 18.
- Proceeds management. The sale proceeds attributable to the minor's share are typically required to be held in a supervised account or investment. The parents cannot simply use this money for living expenses without further court approval.
The timeline for this process varies considerably. Straightforward applications where the sale is clearly in the child's interest can be approved within a few weeks. Contested cases — where the Guardian General has concerns, or where the proceeds arrangement is complex — can take several months.
One common scenario worth flagging: if the family home was the marital home and a parent has died, leaving the surviving parent and minor children as co-owners, the surviving parent needs court permission to sell. This applies even if the surviving parent is desperately trying to manage a difficult financial situation. The Israeli courts understand this creates hardship, and applications made on genuine financial necessity grounds are treated sympathetically — but the process cannot be bypassed.
6. Appointing a Trustee in Your Will for Minor Beneficiaries
The most effective way to reduce the complexity and court involvement when leaving Israeli assets to minor children or grandchildren is to appoint a trustee (ne'eman) in your will. Israeli law specifically allows a testator to appoint a trustee to manage inherited assets on behalf of a minor beneficiary until a specified age — which can be 18, or older if the testator prefers.
A well-drafted trustee arrangement in an Israeli will can:
- Allow the trustee to manage, invest, rent, or even sell the inherited property without repeated Family Court applications (within the scope defined in the will)
- Specify the age at which the minor receives full control — for example, the will might say the child receives the assets outright at age 21 or 25, rather than at 18
- Designate a trusted person — a family member, close friend, or professional — rather than leaving management to the Guardian General by default
- Include instructions on how the income or proceeds are to be used for the child's benefit (education, maintenance, etc.) while they are still a minor
Importantly, even a trustee appointed in a will operates within Israeli law — they have fiduciary duties to the minor, are subject to supervision, and cannot act contrary to the child's interests. But the level of day-to-day court involvement is typically much lower than under the default guardianship framework.
For foreign nationals who own Israeli property and have minor children or grandchildren as potential heirs, getting proper Israeli estate planning advice — including a will that addresses the minor beneficiary question explicitly — can save the family considerable time and expense. See our guide on estate planning for foreigners with Israeli assets for the broader picture.
A Belgian grandfather who owned a Tel Aviv apartment worth NIS 2,100,000 had named his two grandchildren — then aged 7 and 10 — as sole beneficiaries in his Israeli will, without appointing a trustee. When he died in 2023, the children's Israeli mother became their natural guardian over the inherited property, but any dealing with the apartment required Family Court approval and Guardian General involvement. The family needed to sell to settle estate debts of approximately NIS 340,000. The Family Court application, filed in February 2024, required a licensed property appraiser's report confirming the NIS 2,100,000 sale price was at market value, a sworn statement of each child's full asset position, and a Guardian General review. The Guardian General requested additional information about the proposed reinvestment of the proceeds — causing a six-week delay. Final court approval was issued in October 2024, eight months after filing. The court ordered that each child's share of the net proceeds — approximately NIS 880,000 each after estate debts and fees — be held in a restricted Mizrahi Tefahot Bank account bearing the child's name, with any withdrawal before age 18 requiring further court approval. A trustee clause naming the children's mother as trustee with defined management powers would have reduced the court involvement significantly and likely halved the approval timeline.
7. When the Minor Turns 18: Taking Control of the Inheritance
Under Israeli law, a person reaches full legal capacity at 18. On the day the minor turns 18, the natural guardians' authority over the child's property ends automatically — no court order is needed to terminate the guardianship. The now-adult child is entitled to receive their inheritance in full.
In practice, this means:
- Property in a supervised account — the bank or investment manager should release the funds to the new adult upon presentation of their identity documents and proof of the inheritance entitlement.
- Real estate registered in the minor's name — once the child turns 18, they can deal with the property as any adult owner would: sell, mortgage, rent, gift, or transfer it without court approval.
- Property still part of an unsettled estate — if the probate process is still ongoing when the child turns 18, the heir can now participate directly in the process without a guardian.
- Trustee-managed inheritance — if the will specified that the trustee retains control until a later age (e.g., 21), the trustee's authority continues until that date, regardless of the child reaching 18.
One practical issue that arises when a minor heir turns 18 while living abroad: transferring Israeli assets to a foreign-based adult heir follows the standard process for non-resident heirs. The adult child will need to identify themselves to the Israeli authorities, provide bank account details for fund transfers, and in the case of real estate, appoint an Israeli attorney or power of attorney holder to manage any sale or registration process on their behalf. For the general framework on this, see our guide on inheritance law in Israel for foreigners.
