The Hidden Complexity of Multinational Estates
When a Swiss national passes away while residing or holding assets in Israel, their heirs may face more than personal loss. Without proper cross-border planning, families are often left navigating conflicting legal systems, delays, and legal uncertainty.
Swiss and Israeli inheritance laws differ significantly — particularly regarding forced heirship, applicable law, and formal requirements. The following case, handled by our firm, illustrates how a lack of strategic planning can result in years of complications for the surviving family.
Case Overview: Swiss Citizen Passes Away in Israel
Mr. R, a dual Swiss–Israeli citizen who lived part-time in Tel Aviv, passed away unexpectedly in Israel. He left behind:
- A primary residence in Zurich
- Swiss bank accounts and investments
- An apartment in Tel Aviv
- An Israeli pension fund
- A handwritten Swiss will naming his second wife as sole heir
Although the will met Swiss formal requirements, it lacked clarity on two crucial points:
- It did not include a choice of applicable law
- It failed to account for Swiss forced heirship rules
His adult children from a first marriage, residing in Switzerland, were fully excluded from the will — triggering a cross-border legal conflict that froze the estate for nearly five years.
What Went Wrong
- No Choice of Law Was Made
Under Article 91 of the Swiss Private International Law Act (PILA), Swiss citizens domiciled abroad may elect Swiss inheritance law to govern their estate:
“A person may submit their estate by will or succession agreement to the law of one of the states of which they are a citizen…”
(Art. 91, PILA)
Mr. R did not make this election. Because he was domiciled in Israel at the time of death, Israeli law applied by default, and Israeli courts recognized the will under full testamentary freedom — denying the children any compulsory share.
In contrast, Swiss law imposes forced heirship protections that would have entitled the children to a portion of the estate.
- Swiss Will Not Adapted to Israeli Formalities
Although the will was valid in Switzerland, it was not immediately recognized in Israel due to:
- Lack of notarized Hebrew translation
- Missing apostille
- Absence of a supporting legal opinion
This delayed probate proceedings and restricted access to the Israeli assets, including Mr. R’s pension and real estate.
- Duplicate Probate Proceedings
Both Swiss and Israeli authorities required separate probate actions.
- Swiss banks demanded an Erbschein (certificate of inheritance)
- Israeli authorities required probate orders and proof of legal standing
- Swiss tax authorities launched global reporting reviews due to undeclared foreign assets
Legal Guidance for Swiss-Israeli Families
- Elect the Applicable Law
Always include a clause in your will clearly stating that Swiss law shall govern your estate. This protects your intentions and ensures consistency with Swiss succession law, even if you live abroad.
- Consider Dual Wills
For individuals with assets in multiple jurisdictions, separate wills for Swiss and Israeli assets may be advisable — provided they are carefully coordinated to avoid contradictions or unintentional revocations.
- Understand Jurisdictional Differences
- Switzerland: Forced heirship applies; children cannot be fully disinherited without legal justification.
- Israel: Testamentary freedom exists, but is often scrutinized in mixed-family scenarios.
- Ensure Full Transparency
Declare all cross-border assets properly. Incomplete declarations may trigger tax investigations or asset freezes in either jurisdiction.
Practical Takeaways
- Appoint executors familiar with both Swiss and Israeli probate
- Translate and, where appropriate, register your will with Israeli authorities
- Review and update your estate planning regularly
- Maintain accessible, well-organized documentation
Final Note
In Mr. R’s case, the lack of a simple choice of law clause led to years of delays, legal fees, and emotional strain.
Whether you are a Swiss national living in Israel, an expat with dual assets, or an heir managing an international estate, thoughtful cross-border planning is essential. With the right legal structure, your wishes can be respected, and your family spared unnecessary burdens.
