What happens to a gift of Israeli property if the parent dies before it is registered in the child's name?

Israeli law separates the gift from its registration. A signed gift deed (shtar matana) that takes effect immediately is a lifetime gift, even though Section 7(b) of the Land Law treats it as an obligation until the Land Registry records the new owner. The distinction matters because Section 8(b) of the Succession Law 5725-1965 voids a gift designed to take effect only on death unless it meets the formal requirements of a will. Under Section 5(b) of the Gift Law, a donor who has not waived the right in writing may retract only until the recipient relies on the promise. After the donor dies, the obligation passes to the estate like any other liability.

The practical obstacle is registration. A power of attorney signed by the parent ends on death under Section 14(a) of the Agency Law 5725-1965 unless it was made irrevocable, so the child usually needs the heirs or the estate administrator to sign transfer documents, or a court order requiring them to do so. Heirs who resist often argue that the parent meant the gift to take effect only after death, which would bring it within Section 8(b). A caveat (he'arat azhara) registered when the deed was signed, together with tax declarations already filed, is strong evidence of a completed lifetime gift. The registration steps are described in our guide to gifting property in Israel.

From the full guide: Gifting Property in Israel: Tax Rules and Legal Process

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