Most people spend significant time planning how to build wealth, but far fewer consider how their family would access that wealth if something unexpected happened.
For Americans living in Israel who maintain U.S. brokerage or retirement accounts, that question can be more complex than it appears. The challenge usually involves authority, documentation, and cross-border procedures.
From the outside, U.S. accounts often appear unchanged after someone relocates to Israel. Statements arrive, online access continues, and the accounts seem stable. That familiarity can create comfort, but it can also hide administrative challenges that surface during estate transitions.
When inheritance meets two legal systems
Inheritance is often assumed to be simple. A relative passes away, assets transfer to heirs, and accounts continue under new ownership.
Cross-border estates rarely follow that pattern.
Consider a common situation. A son lives in Israel while his parent maintains brokerage accounts in the United States. The parent passes away and the will names the son as the heir.
From the son’s perspective, the next step seems straightforward. Notify the financial institution, submit documentation, and transfer the accounts.
Instead, access to the accounts often stops immediately after the parent’s death. Financial institutions typically freeze accounts once they receive notification. This step protects assets and ensures that only properly authorized individuals can act.
At that point, the focus shifts from who should inherit the assets to who has legal authority to act on behalf of the estate. That distinction frequently creates confusion.
Family expectations often rely on intent. Legal systems rely on documentation and verification. When required paperwork is incomplete or delayed, inheritance can slow significantly.
Beneficiary designations and wills
Many retirement and brokerage accounts use beneficiary designations on their retirement accounts. When completed correctly and kept current, they normally allow assets to transfer directly to heirs without probate. Financial institutions still require verification before releasing assets. But regular brokerage accounts don’t usually have the possibility of a beneficiary designation. “What about transfer-on-death accounts (TOD)?” you might ask. If the account owner and heirs all live in the United States, that might work, but for people who live overseas, the TOD may not work and the brokerage firms may require a probated will.
Probate is the court-supervised process that confirms who has legal authority to inherit assets. Depending on jurisdiction and estate complexity, it can take considerable time and delay account access.
Power of attorney can create misunderstandings. While it may allow someone to manage accounts during a person’s lifetime, that authority generally ends at death. Even if a family member previously helped manage accounts, that control disappears once the account holder passes away.
Online account logins do not replace legal authority and continued use after death can create additional complications.
Additional documentation cross-border families often face
Cross-border inheritance frequently introduces procedural steps that families do not anticipate. Documents may require notarization, apostilles, or translation. Financial institutions may request tax clearance before releasing assets. Communication often involves multiple time zones and unfamiliar regulatory processes.
Each requirement exists for protective and regulatory reasons. Financial institutions must verify identity, confirm authority, and comply with legal obligations. For families managing responsibilities from another country, the administrative process can still feel overwhelming.
Many individuals assume that having a will resolves these challenges. A will remains an important estate planning document, but it functions within the legal system where it was created. When heirs live abroad, additional validation steps may still be required.
Why inheritance paperwork often continues after assets transfer
Inheritance rarely ends when accounts transfer. It often unfolds in stages that may include estate administration, account restructuring, and tax considerations across multiple countries.
In the United States, estate taxes may apply depending on estate size and applicable thresholds. In Israel, receiving inherited assets may create reporting obligations depending on the circumstances. If inherited investments are later sold, capital gains rules in one or both countries may apply.
Retirement accounts such as IRAs can introduce further complexity. Required minimum distributions may create ongoing reporting responsibilities and potential taxable events based on the heir’s individual situation.
This article is intended for educational purposes only and should not be considered financial, legal, or tax advice. Each situation involves unique factors and should be reviewed with qualified professionals.
Planning that may help reduce future delays
Cross-border estate planning does not eliminate complexity, but it can reduce uncertainty and help coordinate financial, legal, and administrative processes.
Families who experience smoother inheritance transitions often share several habits. They periodically review beneficiary designations to confirm they reflect current intentions. They maintain organized records of accounts, financial institutions, and contact details. They revisit estate planning documents after relocating to Israel to confirm the structure remains effective.
When planning evolves alongside life changes, families often encounter fewer unexpected administrative obstacles.
Practical steps that may improve preparedness
Americans living in Israel who maintain U.S. investment accounts may benefit from several foundational steps.
Maintaining a consolidated list of accounts can help family members identify financial institutions and contact details if needed.
Reviewing beneficiary designations can help confirm retirement accounts align with estate planning goals.
Discussing financial account access with family members may help clarify who should contact financial institutions and which documentation may be required.
These steps do not eliminate every challenge, but they may reduce uncertainty and help families navigate complex situations more effectively.
Schedule a Conversation
If you are living in Israel and managing U.S. brokerage or I.R.A. accounts, and you are unsure whether your investments still make sense for your situation, it may be worth taking a fresh look. You can book a free cross-border evaluation call here: https://profile-financial.com/call. It is a no pressure conversation and a chance to see whether your current setup aligns with how you live today.
