Planning the future of a child with a disability

For Families · November 4, 2026

The short answer

If a child with a disability will not be able to manage an inheritance on their own, parents can decide in advance who will hold the money, what it will be used for, and who will oversee it. The main tool is a trust (ne'emanut). Under section 2 of the Trust Law, 5739-1979 (Hok HaNe'emanut), a trust is created by law, by a contract with a trustee, or by an endowment deed (ktav hekdesh). An endowment deed can be a document signed before a notary, a will, or a beneficiary designation under section 147 of the Succession Law, 5725-1965 (Hok HaYerusha) – for example in a pension fund or a life insurance policy (section 17(a) of the Trust Law). Alongside the trust, the plan includes a lasting power of attorney (yipui ko'ach mitmashekh) for each parent and careful preparation for age 18. For more detail, see A trust for a child with a disability – how it works in Israel.

1. What happens without a plan

Three common ways an inheritance reaches a child with a disability when nothing has been planned:

In a trust, by contrast, the trustee must hold the trust assets separately from other assets, or in a way that allows them to be distinguished (section 3(c) of the Trust Law). A beneficiary's rights under an endowment cannot be assigned, pledged or attached, except as the law allows (section 20). The court may allow the assets to be used for the beneficiary's essential needs, even if this departs from the deed (section 19(b)).

2. The planning sequence

1. Approaching 18. At 18 a child becomes an adult in law (section 3 of the Legal Capacity and Guardianship Law). The court may appoint a guardian for an adult who cannot look after their own affairs (section 33(a)(4)), but only where there is no less restrictive alternative – including a deposited lasting power of attorney or a decision-making supporter (section 33A). A decision-making supporter (tomekh be-kabbalat hachlatot) helps the person obtain information, understand it and express their decisions, and does not decide for them (section 67B). We look with you at which option suits your child. The effect on benefits is checked with the relevant authorities. See also Turning 18: guardianship, supported decision-making or a lasting power of attorney.
2. The parents put their own affairs in order. A lasting power of attorney and advance directives (hanchayot mukdamot) for each parent, covering personal, property and medical matters (section 32M(b) of that Law), so that if one of you cannot act, your child's care continues – lasting power of attorney.
3. A will with a trust, and a letter of wishes. Who the trustee is, who replaces them, who oversees, what the money is for – and a letter in which you tell the trustee and your other children about your child's routine and what matters to them – wills.
4. Where needed, a lifetime trust. A trust that operates now, by contract with a trustee or by an endowment deed signed before a notary, in coordination with your accountant on tax and reporting.
5. Periodic review. Updating the plan when the family, the assets or the law change.

What the will or endowment deed sets out

• The purposes. What the money is for – housing, care and therapies, leisure, education – and what you want preserved in your child's routine.
• The trustee and the replacement trustee. Who holds and manages the assets, and who steps in if they cannot or will not continue.
• Who oversees. Who receives reports from the trustee, and how often.
• Payments. How and when the trustee spends money for your child.
• What happens at the end. Who receives whatever remains in the trust after your child's lifetime – for example, siblings or grandchildren.

3. At every stage – where to start

• Young parents. Wills for both parents with a trust chapter, and a lasting power of attorney for each of you. The plan is updated as your child grows.
• Parents of a teenager approaching 18. Reviewing the options for adulthood before the 18th birthday, alongside the will and the trust.
• Older parents of an adult child. Who carries on after you: a trustee, a replacement trustee, someone to oversee, and what happens to any existing guardianship or support arrangement.
• Grandparents. Leaving an inheritance to a grandchild with a disability through a trust in your will, coordinated with the parents' plan.

4. What we do together

Every matter begins with a Roadmap Meeting, followed by a clear written quote before any work starts.

Protective will

• Mutual wills for both parents with a trust chapter for your child – mutual wills
• A trustee, a replacement trustee and someone to oversee
• Balance between siblings
• A letter of wishes from the parents
• Signing and deposit with the Registrar for Inheritance Matters (Rasham le’Inyanei Yerusha) – depositing a will

The comprehensive track

Everything in the protective will, plus:

• A lasting power of attorney and advance directives for both parents
• The road to 18: reviewing the options – guardianship, a decision-making supporter or a lasting power of attorney
• A review of the beneficiaries registered in your pension and provident funds and life insurance policies. Amounts paid under section 147 of the Succession Law are not part of the estate unless otherwise stipulated – pension funds after a death

Lifetime trust

• Planning and drafting the trust contract or endowment deed
• In coordination with your accountant on tax and reporting
• Planning the transfer of assets into the trust. An endowment begins when control of the assets passes to the trustee (section 17(b) of the Trust Law)

Adv. Yona Schwebel is certified by the Administrator General to draft lasting powers of attorney. The firm drafts the documents and guides you through the process.

5. The Roadmap Meeting

60 minutes, on Teams, or if needed at your home or at the office, in English or Hebrew, at a time that suits your time zone.

1. Mapping. Who is in the family, what your child needs, what the assets are and where, and what is already in place.
2. Written recommendations. What to do and in what order, with a clear written quote.
3. Drafting, signing and deposit. We draft the documents, go through them with you, and you sign them.

Book a Roadmap Meeting

6. Coming from the US, the UK or another English-speaking country?

Many families from abroad know the term "special needs trust". A trust under the Israeli Trust Law sounds similar, but what applies to one cannot be assumed to apply to the other. We explain the Israeli side in English and build the plan in coordination with your advisers abroad – families in Israel and abroad.

לקריאה בעברית

Frequently asked questions

Who can be the trustee?

The trustee is appointed in or under the endowment deed, and only with their consent. A minor, a person declared legally incompetent, a bankrupt and a company in liquidation cannot serve, and the beneficiary cannot be the trustee unless the deed allows it (section 21 of the Trust Law, 5739-1979). In the meeting we look at the options with you, including a replacement trustee and who will oversee the trustee.

Will the trust affect my child's benefits?

The effect on benefits is checked with the relevant authorities, as part of building the plan.

We are young parents. Isn't it too early?

The plan is built around the stage your family is at, and updated when the family, the assets or the law change. For young parents it usually starts with wills and a lasting power of attorney for each parent.

Can a lifetime trust be changed once it is set up?

Once an endowment has begun, the person who created it may not change its terms, reduce its assets or revoke it, unless that right was reserved in the deed, or the beneficiaries consent, or the court approves (section 18(b) of the Trust Law). So the question of future changes is addressed at the drafting stage.

What if the beneficiary cannot stand up for their own rights against the trustee?

Where a beneficiary cannot assert their rights because of age, health, or a mental or physical impairment, the Public Trustee (HaNe'eman HaTziburi) may represent them towards the trustee (section 40 of the Trust Law). The deed can also name someone to oversee the trustee.

We live abroad. Can this be done remotely?

Meetings are held in English or Hebrew, on Teams, or if needed at your home or at the office, at a time that suits your time zone. Parents sign a lasting power of attorney in the lawyer's physical presence. A parent living abroad may sign there, before an Israeli lawyer who has completed the Administrator General's training. Anything that depends on the law where you live is handled in coordination with your advisers abroad.

The above is general information on Israeli law only, current as of the date of publication, and does not constitute legal advice or a substitute for advice on your specific circumstances. Consult a lawyer before acting.

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