Heirs according to a will demanded that the funds accumulated in the pension funds be transferred to them and not to the beneficiary registered in the pension fund.
The Court rejected the claim and held that the funds must be transferred to the beneficiary written in the policy. Israeli law excludes from the estate amounts that are paid due to the death of a person under an insurance contract or other statutory funds and states that such will be paid in accordance with the instructions given by the insured to the funds themselves, unless it is expressly stipulated by that they will form part of the estate. Here, at the time the fund was opened, its owners signed letters of authorization granting an irrevocable power of attorney in favor of the sole beneficiary of the pension funds, and it was not set that the pension funds would form part of the estate. Therefore, the registration in the pension fund prevails over the will and the pension funds will be transferred to the beneficiary.