An Israeli bank account after death — what the bank does, what heirs may do before an order, and how the money is released.

Succession · September 5, 2026 · 9 min read

The short answer

The account is frozen, not confiscated. Until a succession order (where there is no will) or a probate order (where there is one) is presented, the bank will not transfer money to the heirs — but it will pay "last respects" expenses against receipts, give balance information to first-degree relatives who sign an indemnity, and, in a joint account with a survivorship clause, let the surviving holder carry on routine activity. After the order — which the banks now retrieve electronically when it was issued by the Registrar of Inheritance — every heir gives distribution instructions, and that can be done from abroad. The deceased's pension, provident and insurance money behaves in exactly the opposite way; that is covered in a separate article.

1. What the bank does when it learns of the death

The rules here are not each bank's internal policy but a directive of the Supervisor of Banks: Proper Conduct of Banking Business Directive 443 ("Dormant Deposits and Accounts of Deceased Customers"). Under it, every bank receives death indications from the Population Registry at least once a month, and once it learns of a death — from any source — it must send a notice about the existence of the account to the customer's registered address within 30 days. If all the account holders have died, the notice says that unless the heirs make contact, the account will in due course be classified as a dormant deposit.

From then on the bank is fairly passive. The directive requires it to check the Registrar of Inheritance's website for an application for an order two years after the death indication and again after five years, and to try to contact the heirs if their details appear there. Funds nobody has claimed for more than ten years are reported to the Administrator General. The practical meaning: nothing disappears in the first year, but nobody is chasing the heirs either. The initiative has to come from them — and for a family abroad, whose Israeli address on the bank's file may be decades old, the 30-day letter will simply never arrive.

2. An account in the deceased's name alone — what may be asked for before an order

Until an order is issued the account is blocked. Three things are nevertheless possible, all of them conditional on identification and on signing an indemnity — an undertaking to compensate the bank if it turns out someone else was entitled to the money:

• Balance information. First-degree relatives — spouse, children, parents, siblings — can obtain information about the deceased's accounts before an order, after signing a kinship form or an information indemnity. This is the stage at which you find out whether there is anything to talk about, and whether there are debts.
• "Last respects" expenses. The banks pay from the deceased's account, at their discretion, expenses directly connected with the death: burial, a headstone, ambulance, death notices, the mourners' meal and transport for mourners. The requirements common to all of them are original receipts, a request by a first-degree relative, and an indemnity signed by the potential heirs. Some banks prefer to pay the supplier directly. There is no statutory ceiling; the amount is "reasonable" as the bank sees it. (Burial fees themselves are paid by the National Insurance Institute directly to the burial society for anyone who dies in Israel.)
• Other urgent expenses. At Leumi, for example, the branch can approve a final settlement with a live-in carer — paid to the carer's account, not to the heirs. Other estate expenses (municipal tax, electricity, rent) are a matter of discretion and will usually wait for the order, unless a temporary estate manager has been appointed.

For whoever holds a lasting power of attorney for property matters that has come into force, or was appointed guardian of property during the deceased's lifetime: the power of attorney and the guardianship expire on death, but under the Legal Capacity and Guardianship Law they may continue to handle certain property matters for up to 90 days — paying for services received in lifetime, reasonable burial and mourning expenses, keeping an asset that needs ongoing management going — provided no temporary estate manager has been appointed. The heirs may require a report from them.

3. Joint accounts and the survivorship clause — what it is and what it is not

This is the clause that confuses families most, so it is worth being precise (it also has a short article of its own). A survivorship clause (in Hebrew, סעיף אריכות ימים) is an agreement between the joint holders and the bank that if one holder dies, the surviving holder may continue to operate the account. Its purpose is to protect the bank from claims by the heirs and to keep a household running — so that the surviving spouse's salary or pension keeps going in and out.

What it allows: routine, ongoing activity only, of the kind carried on during the deceased's lifetime — standing orders, regular payments, ordinary withdrawals. The bank reserves the right to refuse anything out of the ordinary, and certainly to refuse emptying the account.

What it is not: it is not a will, not a succession order, and it confers no ownership. The deceased's share of the account remains part of the estate and is divided under the will or under the law. Anyone who withdraws sums beyond routine activity or beyond their own share is exposed to a restitution claim by the other heirs — and the indemnity signed for the bank does not protect them against those heirs. So even in an account with a survivorship clause, the heirs need to obtain an order and settle the deceased's share with the bank, together with the surviving holder.

In a joint account without a survivorship clause, the account is blocked for everyone, including the surviving holder, until an order is presented. If you do not know whether the clause exists, it appears in the account's annual "bank identity card" statement, and the branch can confirm it.

4. Safe-deposit boxes

A box is not an account, and presenting an order does not open it. Where the heirs do not know the code or disagree among themselves, the practice followed by the Family Courts is an application to appoint an estate manager for this one act. The opening takes place in the presence of a bank representative and an heir, with the contents recorded and photographed only — no division on the spot — followed by a valuation and division by agreement or by lot. The items go back into the box at the end of each working day until the process is complete.

5. After the order — how the money is released

The order is the key, and since 1 December 2021 the banks retrieve orders issued by the Registrar of Inheritance and by the Rabbinical, Sharia and Druze courts electronically themselves — there is no need to present them. An order of the Family Court, and older orders, must be presented in original or as a "true copy" certified by the issuing authority or by a lawyer.

The bank then identifies the heirs named in the order and takes from each of them estate distribution instructions on a dedicated form — usually one form per heir per account — together with identification and a confirmation of the receiving bank account. Most banks require instructions from all the heirs before distributing anything, to avoid claims later; some now offer an online distribution process.

Two points that concern many readers of this page:

• Heirs abroad. The instruction form can be signed before an Israeli consul or before a local notary with an apostille. An heir who holds an account at the same bank can sometimes act through it. An heir who is a US citizen or resident may be asked to complete a Form W-9 — a US reporting requirement that Israeli banks apply, not a requirement of Israeli law. A US probate or letters testamentary do not replace the Israeli order for assets in Israel.
• Before distributing. Estate funds go first to settling debts — funeral and mourning expenses, tax and creditors — and only the balance is divided. An appointed estate manager must publish a notice to creditors; even where none is appointed, it is customary to publish and to wait 90 days before distributing. Heirs who distributed first and were then met by a creditor are personally exposed.

6. Locating a deceased person's accounts

Heirs do not always know where the deceased banked. The Bank of Israel's "Har HaKesef 2" search lets relatives, free of charge and via Israel's national identification system, locate bank accounts in the name of a deceased relative — active and inactive, in credit and in debit. The result shows the bank's name only; balances are obtained from each bank, which will identify the person asking. The data comes from the banks' reports and is not necessarily complete, so it is worth checking the last annual "bank identity card" sent to the deceased and the statements found at home. The service is free — anyone charging a fee to "locate the accounts for you" has no advantage over what you can do yourself. The identification system requires an Israeli ID number and, in practice, an Israeli phone number or biometric ID; a relative in Israel, or a lawyer, can run the search for a family abroad.

Money in provident funds, study funds, managers' insurance and life-insurance policies is not part of the estate and follows different rules — it is located through the Capital Market Authority's "Har HaKesef" and "Har HaBituach" searches. See the article on the deceased's pension, provident and insurance money.

7. The banks compared — according to their own publications

The rules are the same; the differences are in forms, channels and flexibility. The table reflects the banks' websites as of September 2026 and should be confirmed with the branch.

8. What to do in the first weeks — in order

• Obtain the death certificate and notify the banks. An account in the deceased's name alone will be blocked; that protects the money, it does not harm it.
• Check whether there is a will — at home, with the lawyer, and on the Registrar of Inheritance's website (a deposited will).
• Register with "מגן ירושה" (Magen Yerusha) on the Registrar's website — a free alert whenever an application for an order is filed in the deceased's matter.
• Locate accounts through "Har HaKesef 2", and request balance information as first-degree relatives.
• Pay last-respects expenses from the account, against receipts — not from your own pocket, unless you have documented the other heirs' consent to reimbursement.
• Apply for a succession or probate order as soon as the death is registered in the Population Registry. The Registrar processes a clean application in about 40 days on average, after a publication and objection period of at least 14 days.
• Distribute nothing before debts are settled, and wait 90 days from publication of the notice to creditors.

Frequently asked questions

Does the bank keep the money in a deceased person's account?

No. The account is frozen, not confiscated. The funds stay at the bank until the heirs present a succession order or a probate order. Only if nobody comes forward for many years is the account classified as a dormant deposit and eventually reported to the Administrator General — and even then the money can still be claimed.

Can money be withdrawn from a deceased person's account before a succession order?

As a rule no, except for 'last respects' expenses: burial, headstone, ambulance, death notices, the mourners' meal and transport. The banks pay these, at their discretion, against original receipts and an indemnity signed by the potential heirs, and sometimes directly to the supplier.

What does a survivorship clause in a joint account actually give?

It lets the surviving joint holder continue routine, ongoing activity in the account — standing orders, a pension being deposited, living expenses — until an order is issued. It does not make the money theirs: the deceased's share remains part of the estate, and withdrawals beyond routine activity or beyond the survivor's own share can be recovered by the heirs.

How do I find the bank accounts of a relative who died?

Through the Bank of Israel's free 'Har HaKesef 2' search, accessed via Israel's national identification system. The result shows which banks hold an account in the deceased's name — not the balances. Balances are then obtained from each bank, which will identify the person asking before releasing information.

Does the bank need the original succession order?

An order issued by the Registrar of Inheritance or a Rabbinical Court (and, since 1 December 2021, the Sharia and Druze courts) is retrieved by the banks electronically and need not be presented. An order of the Family Court, or an older order, must be presented in original or as a certified true copy.

I am an heir living abroad — how do I give the bank instructions?

The banks accept an heir's instruction form signed before an Israeli consul, or before a local notary with an apostille. An heir who is a US citizen or resident may also be asked to complete a Form W-9. If the heir holds an account at the same bank, it is sometimes possible to act through it.

What happens to the deceased's safe-deposit box?

A box is not opened merely on presentation of an order. In the practice followed by the Family Courts, an estate manager is appointed for this one act, and the box is opened in the presence of a bank representative and an heir, with the contents recorded and photographed, followed by valuation and an agreed division.

The above is general information only, current as of the date of publication, and does not constitute legal or tax advice or a substitute for advice on your specific circumstances. Bank and fund procedures change from time to time and should be confirmed with the institution. Consult a lawyer, and where relevant a tax adviser, before acting.

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