What happens to an Israeli estate when there are no traceable heirs and no will?

The Succession Law 5725-1965 establishes a hierarchy of inheritance classes in Sections 10–16. Spouse and children form the first class, followed by parents, siblings, grandparents, and their descendants. If no heir exists in any class, Section 17 transfers the entire estate to the State of Israel. The General Custodian (Apotropos Klali), a statutory body operating under the Ministry of Justice, assumes the role of estate administrator. The Custodian is required to publish notice of the death in the official gazette (Reshumot) and a daily newspaper, giving any potential unknown heir — including a distant or overseas relative — a formal last opportunity to assert a claim before assets are transferred to the treasury. For a broader overview of how Israeli inheritance law operates for foreigners, the principles of the Succession Law apply equally where the deceased was a foreign national with Israeli assets.

Foreign nationals often encounter this situation when a deceased Israeli relative — perhaps a distant cousin or an elderly relative who had no surviving family in Israel — left no locally traceable heirs. If any person believes they hold a valid inheritance claim, they must come forward before the Custodian closes the estate and makes the final transfer. Once assets are transferred to the treasury, recovery is extraordinarily difficult and requires a separate legal proceeding against the state. The Custodian typically waits 12–18 months before making a final transfer, and this window is the critical period for filing an inheritance application supported by family documentation, translated official records, and genealogical proof. Creditors of the estate — including tax authorities and mortgage lenders — may file their claims with the Custodian independently of any heir dispute.

From the full guide: Inheritance Law in Israel for Foreign Nationals: A Complete Guide

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