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An irrevocable power of attorney may prevail over a later gift that was finalized by recording in the Land Registry

January 15, 2023
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A mother signed an irrevocable notary power of attorney before her death for the purpose of transferring her rights in her apartment, against no consideration, to her three children. After the mother's demise, it was discovered that after the power of attorney was executed, the mother gifted half of her rights to one of her children.

The Court revoked the latter transfer of rights that was made as a gift to one of the children because this was done in contrary to the provisions of the irrevocable power of attorney. Under Israeli law, the grantor of the gift may withdraw the gift as long as it has not been completed under these circumstances and: as long as the recipient of the gift has not changed its status while relying on the commitment; and as long s the grantor waived this right in writing. In this case, even though the latter gift was finalized by recording at the Land Registry (Tabu), the mother intended to gift the apartment to her three children and the irrevocable power of attorney that preceded it stated that it was granted for the benefit of a third party (the children) for the purpose of protecting their rights and it would not be possible to revoke it even in case of death. Therefore, because the mother waived her right to withdraw (from the gift to her three children) and the latter gift (for the benefit of one of the children) was done in contrary to the instructions of the power of attorney - the transfer of rights to one of the children must be revoked.