ISRAEL Law and Practice Contributed by: Yaron Mehulal, Nataly Davidai and Shalom Hershkovitz, FISCHER (FBC & Co.)
General. However, each of the following requires the prior approval of the competent court and/or the Gov - ernment Administrator General: • the sale, transfer or charging of real property; • the leasing of real property subject to the Tenant Protection Laws; • any act whose validity is conditional upon registra - tion in a register maintained by law; • any act that imposes a liability on the ward, such as taking out a loan, creating a pledge or providing a guarantee; • any transaction, including the investment of the ward’s funds, in excess of ILS100,000; and • payment of the guardian’s remuneration. 8.3 Planning for Incapacity Any adult can prepare for the unfortunate event that they become incapacitated by signing a durable power of attorney appointing one or more agents to act on their behalf in financial, medical and personal affairs when that person is no longer able to make decisions and act in such matters. The durable power of attorney may include explicit instructions as to the scope of authority of each agent and the standard of care the person wishes to receive, as well as other preliminary instructions, including directions as to the desired management of the person’s business and property. Unless instructed otherwise in the durable power of attorney, its implementation does not require the mandatory supervision of the Government Admin - istrator General. • making non-customary gifts; • the provision of a guarantee; It should be noted that, in addition to obtaining the prior consent of the person appointed as attorney-in- fact, the durable power of attorney must be drafted by, and signed before, an Israeli lawyer who is authorised by the Government Administrator General to prepare and execute durable powers of attorney. From the date on which the durable power of attor - ney enters into force, and notwithstanding that the attorney-in-fact is not subject to the supervision of the Government Administrator General, the following actions require the prior approval of the competent court and/or the Government Administrator General:
• the sale, transfer or charge of a real estate prop - erty; • the rental of a real property subject to the Tenant Protection Laws; • any act, the validity of which is conditioned upon registration in a register kept by law; • making non-customary gifts; • provision of a guarantee; • any act that imposes a liability on the donor, such as taking out a loan, creating a pledge or providing a guarantee; and • any transaction, including the investment of the ward’s funds, in excess of ILS500,000. 8.4 Elder Law The ageing of the Israeli population was defined as a national, social and financial challenge by the Israeli government as far back as 2015. As part of addressing the challenge, the Israeli gov - ernment has enforced a gradual mandatory pension scheme (which includes a severance pay component), to be paid by all employers and employees from their monthly salaries. Currently, the mandatory contribu - tion is 6% by employees and 12.5% by employers; however, it is also customary for employers to offer study fund savings to their employees. In addition, the Israeli government issues each Israeli resident who has reached retirement age (currently, 63 for women (gradually rising to 65) and 67 for men, with the exception of bereaved parents for whom the retire - ment age can be voluntarily and unilaterally extended to 70 for women and 72 for men) senior citizen sta - tus and a certificate granting discounts in relation to public transportation, museums and cultural centres, public parks, bank fees, municipal property taxes (up to a 25% discount, and subject to certain conditions) and other benefits. In parallel, in order to ensure that every elderly person receives at least a minimum level of financial support in their later years, the National Insurance Agency pro - vides, subject to certain conditions, an old age pen - sion, welfare benefit and income benefit. Furthermore, Israeli tax laws provide elderly or retired people with reduced income tax rates for certain
323 CHAMBERS.COM
Powered by FlippingBook