Legal Updates

One cannot set in a prenuptial agreement instructions as to one’s asset after one’s demise

September 7, 2022
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Spouses requested to approve a financial agreement that stipulates, inter alia, provisions that refer to the circumstances in which one of the parties passes away and a determination that the rights to the assets will pass to the one who remains alive and not to the children of the deceased spouse.

The Court rejected the motion for approval of the prenuptial agreement. Israeli Inheritance Law stipulates that an agreement regarding a person's inheritance and a waiver of inheritance made during that person's lifetime are void, and that a gift that a person gives in order to be granted to the recipient only after the grantor’s demise is not valid unless it was made in a duly made will. This section does not prevent transactions that will come into effect upon the death of a person, but it does prevent agreements that attempt to deny an heir from his inheritance or to make an inheritance to a person who is not an heir by law or by will. In this case, the prenuptial agreement seeks to set how assets will be distributed after the demise of one of the spouses while excluding the husband's children from his previous marriage. A person may do this, but only in a duly made will under law and not in a prenuptial agreement.

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