Quick Answer: If a relative died in Israel and you suspect they left behind bank accounts, insurance policies, or pension savings that were never claimed, those assets may now be held by the Custodian General (Apotropos Klali) at Israel's Ministry of Justice. Under the Dormant Assets Law 5776-2016, financial institutions must transfer unclaimed assets to the Custodian General after 7–10 years of inactivity. You can search the free public database at apotropos.justice.gov.il by the deceased's name or Israeli ID number. Heirs have 10 years from the transfer date to file a claim — after that, assets pass permanently to the state treasury. A succession order from the Israeli Inheritance Registrar is the key document required.

Each year, Israeli banks, insurance companies, and pension fund managers quietly transfer hundreds of millions of shekels in unclaimed financial assets to the state. The accounts belong to people who died without heirs stepping forward in time, or to living individuals who simply lost track of old accounts. For diaspora families whose relatives spent decades in Israel, there is a genuine chance that savings, a life insurance payout, or pension contributions are sitting in state custody — waiting for someone to come forward and claim them.

The process is not automatic. The Inheritance Registrar (Rasham HaYerushoth) does not link estate proceedings to dormant asset records. The Israeli bank holding a frozen account does not send letters to relatives in New York or London. To recover what is there, you have to actively search, obtain the right court authorization, and file a formal claim with the Custodian General's office — each step described below.

1. What Is the Custodian General (Apotropos Klali)?

The Apotropos Klali — literally "General Guardian" — is a statutory office within Israel's Ministry of Justice with several distinct legal functions:

  • Guardian of minors and incapacitated adults when no private guardian is available or suitable.
  • Administrator of estates when heirs cannot be located or when no administrator has been appointed.
  • Custodian of dormant financial assets — the role most relevant to foreign heirs searching for unclaimed inheritance.

In its dormant assets role, the Custodian General is a temporary trustee. Financial institutions transfer dormant assets to it, and it holds them in a designated state account. The rightful owner or their heirs can reclaim those assets at any time within the statutory window — the Custodian General does not pocket or invest the money during the holding period. Interest continues to accrue at the statutory linkage rate on cash assets.

In Practice: As of 2026, the Custodian General holds approximately NIS 8 billion in dormant assets transferred from Israeli banks, insurance companies, pension and provident funds, and securities brokers. The office is located at Salah a-Din Street 7, Jerusalem, and can be reached by phone at 02-656-7888 or through the Ministry of Justice portal. An English-language information page is available at gov.il/en/departments/the_custodian_general. The dormant assets search database is separate from the general Custodian General website and is accessed at apotropos.justice.gov.il/dormant.

2. The Dormant Assets Law 5776-2016

Before 2016, Israel had no unified law governing unclaimed financial assets. Banks held dormant accounts indefinitely under their own internal policies. Insurance companies closed files on unpaid policies. Pension funds accumulated unclaimed balances with no requirement to report them to any authority.

The Dormant Assets Law 5776-2016 (Hok HaNechasim HaDumim), which came into force on June 1, 2016, changed this completely. The law created a national framework that:

  • Defines precisely when an asset becomes "dormant" based on inactivity periods;
  • Requires all licensed financial institutions to report dormant assets to the Capital Markets, Insurance, and Savings Authority (CMISA) annually;
  • Requires those institutions to transfer dormant assets to the Custodian General after the holding period ends;
  • Creates a public searchable database so rightful owners and heirs can find out whether their assets are held by the state; and
  • Sets a 10-year claim window from the transfer date, after which assets become state property permanently.

The law applies to all financial assets held by Israeli-licensed institutions, regardless of whether the account holder was an Israeli resident or a foreign national. A US citizen who held an Israeli bank account in the 1990s and then emigrated is just as covered as an Israeli resident.

In Practice: The Capital Markets, Insurance, and Savings Authority (CMISA) — known in Hebrew as Reshut Shuk HaHon — supervises compliance with the Dormant Assets Law. Financial institutions that fail to report or transfer dormant assets face penalties under Section 31 of the Dormant Assets Law, ranging from a written warning to fines of NIS 50,000–500,000 depending on the severity of the violation. As of 2026, major Israeli banks (Bank Hapoalim, Bank Leumi, Mizrahi-Tefahot, Discount, and First International Bank) have all completed their initial transfer cycles and are operating on the annual rolling reporting schedule required by Section 9 of the Law.

3. Which Assets Are Transferred to the Custodian General

The Dormant Assets Law covers a broad range of financial assets. The trigger periods differ by asset type:

Bank Accounts (7-Year Rule)

A bank account — checking, savings, foreign currency, or term deposit — becomes dormant under Section 3(a) of the Dormant Assets Law when there have been no transactions initiated by the account holder for 7 consecutive years. Automated charges such as bank service fees do not count as "transactions." Before transferring, the bank must attempt to contact the account holder using the address in the Population Registry and, where applicable, the last known email address or phone number. If contact fails, the balance transfers to the Custodian General with accrued interest.

Life Insurance and Savings Policies (7-Year Rule)

Under Section 5 of the Dormant Assets Law, a life insurance policy becomes dormant when 7 years pass from the maturity date or the insured event (typically death) without a claim being submitted. This is one of the most common sources of unclaimed inheritance: an Israeli parent took out a life insurance policy in the 1970s, named their children as beneficiaries, and died — but the foreign-resident children never knew the policy existed, so it went unclaimed for over a decade before the insurer eventually transferred the accumulated value to the Custodian General.

Pension and Provident Funds (10-Year Rule)

Pension funds (*keren pensia*) and provident funds (*keren hishtalmut*, managers' insurance) use a longer window: under Section 6 of the Dormant Assets Law, a fund account becomes dormant when the fund has had no contact with the beneficiary for 10 years and can no longer locate them through the Population Registry. This is relevant when a parent or grandparent was enrolled in a workplace pension fund through an employer but passed away without the beneficiaries ever knowing the fund existed, or when the fund lost contact with a pensioner who emigrated.

Securities and Investment Accounts (7-Year Rule)

Shares on the Tel Aviv Stock Exchange (TASE), mutual fund units, government bonds, and securities held in a brokerage account with no owner-initiated activity for 7 years are transferred under Section 7 of the Dormant Assets Law. The securities are liquidated before transfer — the Custodian General receives the cash equivalent at the market value on the date of liquidation, plus accrued dividends.

Safe Deposit Box Contents

Physical contents of safe deposit boxes (gold, jewelry, documents, foreign currency) that have been unopened for 15 years and where the renter cannot be located are also subject to transfer under Section 8 of the Dormant Assets Law. The bank notifies the Custodian General, which arranges for a supervised opening, inventory, and valuation. Physical items are held in secure storage; cashable items are converted. Foreign heirs can claim physical items as well as cash once they produce a succession order.

In Practice: The CMISA publishes annual statistics on dormant asset transfers. The 2025 annual report showed that Bank Hapoalim transferred NIS 312 million, Bank Leumi transferred NIS 289 million, and Clal Insurance transferred NIS 78 million in that calendar year alone. Pension fund transfers, which operate on the 10-year cycle and are at an earlier stage of the rollout, are expected to accelerate through 2027–2028 as the first large cohort of 10-year dormant accounts reaches its transfer deadline. The single largest category by value is typically long-dormant bank current accounts, which can carry decades of accumulated interest under CPI linkage.

The Custodian General operates a free, publicly accessible online database at apotropos.justice.gov.il/dormant. The search interface is currently available in Hebrew only, but the inputs are straightforward: you enter the Israeli identity number (mispar zehut) of the person whose assets you are looking for, their full Hebrew name, or both. Results appear immediately and show:

  • The name of the financial institution that transferred the asset;
  • The asset type (bank account, insurance policy, pension fund, securities);
  • A reference number for the specific asset record; and
  • The transfer date to the Custodian General.

The database does not display the monetary value of assets for privacy and security reasons — the amount is disclosed only during the formal claim process after your identity and legal standing as heir are verified.

If you do not know the deceased's Israeli identity number, you can search by full Hebrew name alone. Because common Israeli names produce many results, adding the year of birth or city narrows the search. An Israeli attorney or the Israeli consulate in your country can often help transliterate an English-language name into the Hebrew characters needed for the search.

In Practice: The Custodian General database covers only assets already transferred to state custody. Assets that are dormant but have not yet reached the 7- or 10-year transfer trigger will not appear in the search. For those, you need to contact the financial institution directly — a task that typically requires a succession order and a lawyer's letter. When helping diaspora heirs, we routinely run two parallel searches: the Custodian General portal for transferred assets, and direct letters to the six major Israeli banks and the three largest Israeli insurers (Clal, Harel, Menorah Mivtachim) asking whether the deceased held accounts or policies. Each institution requires a succession order before disclosing whether any account exists. Combining both searches is the only way to ensure nothing is missed.

5. The Claims Process: Step by Step

Once you find a match in the database, the claims process involves several distinct stages. Foreign heirs most commonly complete the entire process through an Israeli attorney acting under a Power of Attorney, avoiding the need to travel to Israel.

Step 1: Obtain an Israeli Succession Order

The Custodian General will not release assets to any person — including close family members — without a valid Israeli court order establishing their legal standing as heirs. Specifically, you need either:

  • A Succession Order (Tzav Yerusha) — issued when the deceased died without a will, confirming who the intestate heirs are under the Succession Law 5725-1965; or
  • A Probate Order (Tzav Kiyum Tzava'a) — issued when there is a valid Israeli or foreign will, confirming the will is effective and identifying the named beneficiaries.

Applications for succession or probate orders are filed with the Inheritance Registrar (Rasham HaYerushoth), which handles straightforward cases, or with the Family Court when disputes arise. For foreign heirs, the application requires: proof of the death (Israeli death certificate or apostilled foreign certificate), proof of relationship, proof that no other succession order has been issued, and an attorney's file at the Registrar. See our full guide on The Probate Process in Israel for the complete application details.

Step 2: File the Claim with the Custodian General

Once you hold a succession or probate order, submit a claim to the Custodian General's dormant assets department. The claim form is available on the Ministry of Justice portal and requires:

  • The asset reference number from the database search;
  • A certified copy of the succession or probate order;
  • A certified copy of the deceased's Israeli identity card or passport;
  • The claimant's identity document — an apostilled copy for foreign nationals;
  • A certified Hebrew translation of any non-Hebrew document;
  • Bank account details (IBAN and SWIFT/BIC) for the transfer of recovered funds; and
  • A signed declaration that you are the rightful heir or authorized representative.

Step 3: Custodian General Verification

The Custodian General reviews the claim, verifies that the person named in the succession order matches the database entry, and confirms that no prior claim has been paid on the same asset. This review typically takes 30–90 days. If the Custodian General requires additional documentation, they will request it in writing. Claims that are missing documents are suspended, not rejected — you have the opportunity to complete the file.

Step 4: Payment

Once approved, the Custodian General transfers the asset amount — including CPI linkage and statutory interest accrued during the holding period — directly to the bank account provided. For physical items (safe deposit box contents), the claimant or their attorney collects from the secure storage facility. Payment is made in New Israeli Shekels; foreign heirs who want foreign-currency transfers must arrange conversion through their Israeli or foreign bank.

In Practice: The biggest bottleneck for foreign heirs is almost always obtaining the succession order, not the Custodian General claim itself. For a straightforward estate where the deceased died in Israel without a will and the heirs are documented children, the Inheritance Registrar can issue a succession order in 45–75 days from a complete application, at a Registrar fee of NIS 576. If there is a dispute — for example, if multiple potential heirs contest who is entitled — the matter moves to the Family Court and can take 12–24 months. Most diaspora cases where a parent died leaving documented adult children are straightforward and can be completed within 3–4 months from instruction to payout.

6. Time Limits — Act Before the Forfeiture Deadline

The 10-year claim window created by Section 19 of the Dormant Assets Law is absolute. Once it expires, the assets vest permanently in the Israeli state and cannot be recovered through any claim process or legal challenge.

Because the Dormant Assets Law came into force on June 1, 2016, and financial institutions were given phased deadlines to complete their initial transfers (most completed the first cycle by December 2017), a significant volume of assets transferred in 2016–2017 will reach their 10-year forfeiture deadline between June 2026 and December 2027. Heirs whose assets were transferred in 2016 have until no later than June 2026 to claim — and for transfers dated 2017, until 2027.

A family that puts off the search — "we will deal with grandfather's Israeli account next year" — may find the window has closed permanently if the account was transferred to the Custodian General in 2016.

In Practice: There is no suspension of the 10-year deadline for heirs who were unaware the assets existed. The Dormant Assets Law does not provide an exception for good-faith ignorance, although the Custodian General is required to maintain the dormant assets register as a public notification mechanism. The Knesset Finance Committee discussed an extension proposal in early 2026 but has not enacted one as of June 2026. The safest course is to run a search now and begin the succession order process immediately if any match is found. A complete search costs nothing; the legal process to obtain the succession order and file the claim typically costs NIS 4,000–9,000 in attorney fees plus the NIS 576 Registrar fee, depending on the complexity of the estate.

7. Tax Treatment of Recovered Dormant Assets

Israel abolished estate and inheritance tax in 1981, so the recovery of dormant assets from the Custodian General is not itself a taxable event in Israel. However, several ancillary tax issues arise:

Interest and Linkage Differentials

The Custodian General adds CPI linkage and interest to cash assets during the holding period. Under Section 9(3) of the Income Tax Ordinance 1961, interest received by a non-resident from Israeli sources is subject to 25% withholding tax. However, the linkage differential itself (the CPI adjustment to the principal) is not treated as interest and is not withheld. In practice, the Custodian General deducts 25% withholding on the interest component of any payment to a non-resident before transferring. If your country has a double tax treaty with Israel that provides a reduced withholding rate on interest (for example, the US–Israel tax treaty caps withholding at 17.5% for portfolio interest), you can apply to the Israel Tax Authority for a reduced withholding certificate under Section 167(b) of the Income Tax Ordinance before the Custodian General makes the payment.

Capital Gains on Liquidated Securities

Securities transferred to the Custodian General are liquidated at market value on the transfer date. Any capital gain between the original acquisition cost and the liquidation value was crystallized at that date. Non-residents are generally exempt from Israeli capital gains tax on gains from TASE-listed securities under Section 97(b2) of the Income Tax Ordinance, provided they meet the definition of a registered foreign investor. Unlisted securities (such as shares in private Israeli companies) are subject to 25% capital gains tax on the gain element.

Home-Country Reporting

For US citizens and green card holders: a recovery of Israeli inheritance assets must be reported to the IRS on Form 3520 (receipt of a bequest from a foreign person exceeding $100,000 in a tax year). The recovery is typically not itself US taxable income — the original inheritance is not taxed by the US — but the reporting obligation is real, and the penalty for missing it is 35% of the amount received. US heirs should also check FBAR obligations if recovered funds sit in an Israeli bank account above $10,000. UK, Australian, and Canadian heirs face their own country-specific disclosure rules, none of which align with Israel's timetable.

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8. Holocaust-Era Assets and Special Search Routes

For diaspora families with roots in pre-state Israel or in communities that fled Europe in the 1930s–1940s, a separate set of resources may be relevant alongside the Custodian General database.

The SHEM Database

The SHEM database (an acronym for Shem — Hebrew for "name") is maintained by the Jerusalem Institute for Policy Research in partnership with the Claims Conference and Yad Vashem. It aggregates records of Holocaust victim accounts and heirless property from the period 1933–1948. While SHEM is distinct from the Dormant Assets Law database, both searches are advisable for families with pre-1948 Israeli connections.

The Custodian General's Pre-2016 Holdings

The Custodian General also holds assets that predated the 2016 law — accounts that were transferred to it under earlier administrative procedures before formal legislation existed. These legacy assets appear in the same search portal and are subject to the same claims process. Some of these holdings date back to the 1960s and 1970s, making them relevant for second and third-generation diaspora families.

In Practice: When we search for unclaimed Israeli inheritance on behalf of diaspora clients, we routinely check three separate databases: (1) the Custodian General's dormant assets portal; (2) the Registrar of Inheritance Affairs (Rasham HaYerushoth) to confirm no prior succession order was issued on the estate; and (3) the Israeli Land Registry (Tabu), searchable by owner name, to check whether the deceased held real property that was never formally transferred to heirs. Real property that was inherited but never registered at the Tabu is a fourth category of "unclaimed" asset — not covered by the Dormant Assets Law, but equally recoverable through a succession order and a Tabu registration application. All three searches together give a complete picture of what an estate may hold.