Can heirs settle an inheritance dispute through arbitration in Israel?
Arbitrability in Israel turns on whether a matter is one the parties can settle privately. Property and contract disputes among heirs, such as who takes which asset, how to value a business, or whether to sell a jointly inherited apartment, are freely arbitrable, and an award can be confirmed by the District Court and enforced through the Execution Office. Matters of personal status and the public act of issuing a succession or probate order sit outside private arbitration. An arbitrator can decide a distribution dispute the heirs have referred, but cannot itself declare who the lawful heirs are for the purpose of the state register.
For foreign heirs scattered across countries, arbitration can be an efficient and confidential alternative to litigating an estate fight in open court, and it lets the parties pick a neutral arbitrator familiar with cross-border estates. The cleanest approach is to obtain the succession or probate order first, then refer the division disagreement to arbitration under a written agreement signed by all the heirs. Bear in mind that the interests of a minor or an incapacitated heir may still require court approval, which an arbitrator cannot give. For how Israeli arbitration works from start to finish, see Introduction to Israeli Arbitration Law.
- Governing law: Arbitration Law 5728-1968; Succession Law 5725-1965 for the order itself
- Competent authority: the arbitrator for division disputes; Registrar of Inheritance Affairs or the Family Court for the order
- Arbitrable: dividing estate property, valuation, and the sale of jointly inherited assets
- Not arbitrable: issuing a succession or probate order, or status questions about who is an heir
- Enforcement: an award is confirmed by the District Court, then enforced through the Execution Office
- Caution: a minor or incapacitated heir's share may still need court approval
From the full guide: Introduction to Israeli Arbitration Law
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