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How are the assets of an Israeli estate valued when heirs divide them, and can an heir dispute the valuation?

Israeli law sets no single valuation formula, but it does fix the date. Section 112 of the Succession Law 5725-1965 values estate assets as at the time of distribution rather than the date of death, which matters when property prices move during a long probate. Where heirs cannot agree on a figure, the Family Court or the estate administrator appoints an independent appraiser. An heir who disputes the report can file objections, question the appraiser, and ask the court to appoint a second expert.

Chapter Six of the Succession Law governs how an estate is actually divided once a succession order or probate order has been issued. Section 110 directs that assets be distributed in kind where that is practical, with cash equalization payments to balance unequal shares, and Section 112 fixes the valuation date at the time of distribution. The Registrar of Inheritance Affairs issues the order but never values anything. Valuation belongs to the distribution stage, normally handled by an estate administrator under Family Court supervision. Real property is appraised by a licensed appraiser, while shares in a private company, a professional practice, or a business usually require an accountant's valuation.

For an heir abroad the practical risk is accepting a number produced by whichever relative lives closest to the asset. A sibling occupying the apartment has an obvious interest in a low figure, and an informal family estimate is not binding once signed into a distribution agreement. Ask for a formal written appraisal, check the appraiser's assumptions about rights to build and the condition of the property, and confirm whether the valuation reflects the apartment vacant or with an occupant. Appraisal and accountancy costs are normally borne by the estate, so requesting one rarely comes out of a single heir's pocket.

⚖ In Practice
  • Governing law: Sections 110 and 112, Succession Law 5725-1965
  • Competent authority: Family Court (Beit Mishpat LeMishpacha); the succession order itself comes from the Registrar of Inheritance Affairs (Rasham LeInyanei Yerusha)
  • Valuation date: value at the time of distribution, not the date of death
  • Appraisal cost: a licensed land appraiser (shamai mekarke'in) charges approximately NIS 2,500 to 6,000 per apartment (2026), normally paid by the estate
  • Timeline: 3 to 6 months from appointment to a filed appraisal where heirs cooperate; a contested expert process commonly adds 6 to 12 months

From the full guide: Distributing an Israeli Estate: A Practical Guide for Foreign Heirs

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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