Estate Management – How Is It Done ?

Estate management is a process that takes place even before receiving a probate order or will execution order, and its purpose is to collect the estate’s assets, pay debts if any exist in the estate, and distribute the estate among the heirs. There are two types of estate management:

1. Temporary Estate Management – Occurs before a will execution order or inheritance order is given – the temporary estate manager is authorized to preserve and collect the estate.

2. Permanent Estate Management – Performed concurrently with the issuance of the will execution order or inheritance order – the permanent estate manager is authorized to realize the estate and distribute it among the heirs.

Estate management is carried out under the full supervision of the General Custodian and the Family Affairs Court. The latter is also responsible for determining the estate manager’s fee, which will be collected from the estate itself. Estate management is carried out by someone chosen by the heirs, or by the court, if there is no agreement regarding their selection.

What Does Estate Management Include ?

Estate management includes the following powers: handling real estate assets located in the estate (apartments, agricultural units, industrial or commercial units), handling a leased property subject to tenant protection laws, performing actions requiring registration in a register, or any other action determined by the court during the estate management process.

As part of estate management, the estate manager approaches the heirs and asks them to submit their claims in writing.

Estate management includes addressing tax aspects related to estate funds, especially when the heirs are foreign citizens, and also when real estate assets are involved – the distribution of the estate must be adapted to the various tax laws, and the estate must be divided in the best way for the heirs in this regard.

When the deceased is a foreign resident and their estate is located abroad, but one of their heirs is Israeli, and even if an estate management process is already taking place in that country, an estate manager must be appointed in Israel and an inheritance order issued in Israel.

Estate management is necessary when difficulties arise in the distribution of the estate, for example, due to objections filed by some of the heirs in the process. Also, if debts in the estate are discovered during the estate management process, the estate manager must use the funds in it to repay them or act to realize the assets included in it.